Energiekontor confirms it has reached financial close on Withernwick II extension project, after securing PPA with leading consumer goods brand.
Construction work is set to begin on what is believed to be the UK's first subsidy free onshore wind farm, after developer Energiekontor announced it has reached financial close on its 8.2MW Withernwick II extension project in Yorkshire.
The company confirmed recently that it has secured a Power Purchase Agreement (PPA) with an unnamed consumer goods brand, allowing it to proceed with the project.
A contract has also been signed with turbine manufacturer Senvion for four MM92 turbines, with the project now expected to come online in early 2019.
The project represents a major milestone for the UK onshore wind energy market, which has faced a development hiatus over the past year following the government's decision to block onshore projects from competing for clean energy price support contracts. A number of developers have responded by seeking PPA contracts with large corporate customers and Energiekontor believes the Withernwick II project is the first to make it to the construction phase without any form of government support.
A number of other PPA-backed onshore wind and solar projects are understood to be in the pipeline and the trend has been broadly welcomed by the government, which has cited it as evidence that renewables can now be developed without recourse to subsidy support.