Dublin, Monday, 25th March – Irish renewable energy generation and energy storage group, Gaelectric, has raised €65 million in funding for its portfolio of on-shore wind energy projects on the island of Ireland. The portfolio comprises 164 MW of generation capacity across 13 projects which the Group plans to develop out by 2017, representing a total investment in the region of €250 million. Gaelectric has also concluded a framework agreement with leading German turbine manufacturer Enercon (www.enercon.com) which will see Enercon technology deployed on all the Gaelectric sites covered by the current funding round.
The funding is led by Swedish group, (www.proventuscapitalpartners.se), who specialise in providing development capital through private corporate loans to mid-sized companies for growth. Gaelectric was assisted with the transaction by McCann Fitzgerald and by RBC Capital Markets
The funding provided by Proventus Capital Partners has been complemented by a senior debt package provided by Nord LB (www.nordlb.de). This debt financing has been used to finance the construction of the 13.8 MW wind energy project which is currently being energised by Gaelectric at Carn Hill, Co Antrim.
Commenting on the successful conclusion of its latest funding round, Gaelectric Group Finance Director, Barry Gavin, said:
“The funding we have secured will, together with our agreement with Enercon, underpin the delivery of our onshore wind energy portfolio in Ireland which comprises approximately 164 MW of projects and represents a total investment cost of approximately €250 million. We are particularly delighted of the opportunity to partner with Proventus, Nord LB and Enercon, all of whom have international reputations and track records that will be of immediate benefit to Gaelectric.”
Mr. Gavin said: “In our discussions with funders and investors we have been able to provide clear visibility of a portfolio of projects which have been substantially de-risked and which will be commissioned by 2017. We now have 120 MW of wind energy projects with full planning approval and grid connection offers. 18 MW of this portfolio will be generating renewable power by Q1, 2013. Our onshore portfolio in Ireland will create sufficient generation capacity to power the energy needs of 85,000 homes and displace 262,000 tonnes of CO2 per annum”
Mr. Gavin said: “This amount of generation capacity opens up a range of strategically important options to Gaelectric Group. It will allow Gaelectric transition from being a pre-revenue, renewable energy development Group to an energy development and operating Group with significant assets in Ireland producing renewable power, generating turnover and cash for the Group, and further returns for our shareholders and investors.”
Through its energy storage division, Gaelectric Energy Storage (GES), Gaelectric is developing an energy storage project utilising Compressed Air Energy Storage (CAES) technology at a site near the town of Larne, on the east Antrim coast. Mr. Gavin said: “Our energy storage business is in advanced discussions with a number of infrastructure investors on our flagship 268 MW compressed air energy storage project in Larne. We expect to form a consortium by year end that will construct the project by 2016/2017. This technology will be applied to store surplus renewable energy while also enabling variability balancing on the transmission system.”
Gaelectric is also developing a further pipeline of 510 MW of wind energy projects centred on the US State of Montana to supply power markets in the Pacific North West and California within a 2014 to 2017 timeframe.
Barry Gavin, Finance Director of Gaelectric Holdings, is available for interview by arrangement through FTI Consulting.
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Gaelectric is a renewable energy development and energy storage group which, since its establishment in 2004, has demonstrated its ability to create and develop out an extensive portfolio of renewable energy projects in multiple markets. Gaelectric’s business is centred on three core areas of activity, namely –
• On-shore wind energy development and operations on the island of Ireland
• Energy storage systems (Gaelectric Energy Storage) and off-shore energy development
• On-shore wind energy development in the United States
Gaelectric has offices in Dublin, Belfast, Chicago and Great Falls, Montana.
Proventus Capital Partners (www.proventuscapitalpartners.se) is a co-investment vehicle with approximately EUR 1billion under management and is managed by the Proventus investment team. Proventus Capital Partners provides development capital through private corporate loans to mid-sized companies in need for growth and restructuring capital as well as investment in public corporate bonds. Investments are carried out in Western Europe.
Proventus Capital Partners is managed by the Proventus investment team.
Nord/LB (www.nordlb.de) is one of Germany’s leading Landesbanks and is a universal bank at the heart of northern Germany headquartered Hanover.
As a commercial bank, Nord/LB offers an extensive range of financial services to private, corporate and institutional customers as well as public sector customers. In the area of structured financing, it is involved in ship and aircraft financing and in international projects at select locations in the sectors of energy, infrastructure, industry and real estate. Nord/LB is one of the leading project finance banks providing structuring and lending services to renewable energy projects. Globally, Nord/LB is represented in all important trading centers such as London, Moscow, Mumbai, New York, Shanghai and Singapore through its branches and representative offices. Its total assets at 30 June 2012 amount to €228,667 million.
Enercon (www.enercon.de) has been setting new standards in technological design for more than 25 years. With more than 20,000 wind turbines installed in over 30 countries, ENERCON is also recognized as one of the leading manufacturers at the international level. Research and development, as well as production and sales are constantly evolving. The company’s objective for 2013 is an export share of more than 60 %, gradually increasing over the years to come.