Ireland's ESB, Coillte secure financing for 35-MW wind farm

ESB and Coillte have reached financial close on their 35-MW Raheenleagh wind project in eastern Ireland, the two state-owned Irish companies said on Tuesday.

The power utility and the natural resources management firm have secured long-term debt from Bank of Ireland and Nord LB to finance the EUR-70-million (USD 76.8m) project. The significant portion of the investment will be funded through bank debt, while the remainder will be equity provided by ESB and Coillte, according to the announcement.

The wind farm, a 50:50 venture between the two companies, will be located near Arklow in County Wicklow. It will consist of 11 Siemens turbines that are expected to produce enough power for about 22,500 households. Construction is ready to begin and the start of commercial operation is targeted for October 2016.

"We look forward to working with Coillte on Raheenleagh Wind Farm, as well as upcoming projects in Bunkimalta and Castlepook," said ESB chief executive Pat O'Doherty.

Coillte chief executive Fergal Leamy says renewable energy is complementary to the company's main activity. "Coillte's core business is forestry and our ambition is to maximise the economic and social value of each hectare we manage," he said.

(EUR 1.0 = USD 1.097)

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