Back to Press Releases 23 May 2018
ESB and Bord na Móna reach Financial Close on Oweninny Wind Farm Project
• The wind farm’s 29 turbines will supply clean energy to the equivalent of over 50,000 homes
• Project will be financed by a consortium of banks including the European Investment Bank (EIB), MUFG Bank, BNP Paribas and AIB
• Project is the EIB’s largest financing in Ireland to date under the Investment Plan for Europe
23 May 2018
ESB and Bord na Móna are pleased to announce that financial close has been reached on the €160m Oweninny project in North County Mayo.
The project will be financed with long-term debt from a consortium of banks including the European Investment Bank (EIB), who are providing 50 per cent of the funding, as well as MUFG Bank, BNP Paribas and AIB.
Located between Crossmolina and Bangor Erris, the site was formerly used for peat harvesting by Bord na Móna to provide indigenous fuel for ESB’s peat fired power station at Bellacorick, up to its decommissioning in 2003. The country’s first commercial wind farm was established at the site in 1992.
Commenting on this significant milestone for the 89MW project, ESB Chief Executive Pat O’Doherty welcomed ESB’s collaboration with Bord na Móna, the EIB and the other financial institutions involved: “Through this project, we are building on a long history of indigenous electricity generation at Bellacorick and demonstrating our commitment to a low carbon future, powered by clean electricity. Oweninny wind farm will add to ESB’s existing portfolio of 16 wind farms on the island of Ireland and will support our strategy to significantly reduce the carbon intensity of the electricity we generate. Over the next decade, we will replace high carbon emitting generation with low carbon and renewable alternatives, and will collaborate with innovative, like-minded organisations such as Bord na Móna and the European Investment Bank, as well as AIB, BNP Paribas and MUFG, to lead Ireland’s transition to a clean energy future.”
Bord na Móna Managing Director Tom Donnellan said: “We have a long history in Mayo and this exciting new venture represents the next chapter in Bord na Móna reaching 1GW of renewable assets by 2030, which will power over half a million homes across the Country. Our vision is to enable a more sustainable Ireland by harnessing our natural resources and I welcome this milestone in the project. Ireland has to completely transform the way that we generate and consume energy for the future. Whilst peat production ceased in Oweninny some years ago, this joint venture with ESB demonstrates how we in Bord na Móna can best use our land bank of over 200,000 acres in order to support national policy to decarbonise by investing in new forms of renewable energy that are secure and sustainable. ”
The European Investment Bank (EIB), which is providing half the funding, is the world’s largest financier for renewable energy investment and technical experience gained from wind farms worldwide has helped strengthen the project. “The European Investment Bank’s €80 million financing for the new Oweninny wind farm – 50% of total funding - represents our largest ever investment in renewable energy generation in Ireland and the largest financing in Ireland to date under the Investment Plan for Europe,” said Andrew McDowell, EIB Vice President.
He added that: “Harnessing wind power to provide clean energy is crucial for Ireland to meet its EU and global climate commitments. That is why the European Investment Bank (EIB) – as the EU Bank and the world’s largest financier for renewable energy investment – is pleased to work with ESB, Bord na Mona and Irish and international banks to back this landmark investment for County Mayo, on the location of Ireland’s first ever commercial wind farm. Not only will this project contribute to Ireland’s climate action targets, but it will also power over 50,000 homes and is creating around one hundred local jobs during construction.”
European Commissioner Phil Hogan said: "This investment by the European Investment Bank and guaranteed by the Juncker Plan is a strong statement of support for the further development of clean energy in Ireland. The EU has and continues to be a leader in meeting the targets of the Paris Agreement and we all have a part to play. This €80 million investment from the EIB – the EU's bank – has the potential to make a significant contribution to Ireland's renewable energy and climate action targets, through the provision of clean energy to over 50 000 homes. The project also represents excellent collaboration on the part of the commercial semi-state sector as well as public and private sector banks."
The EIB financing is part of the Investment Plan for Europe and backed by the European Fund for Strategic Investments.
ESB and Bord na Móna have established a Community Benefit Scheme for the funding of local community projects and initiatives over the lifetime of the wind farm.
ESB operates across the electricity market: from generation, through transmission and distribution to the supply of customers with an expanding presence in the Great Britain generation market. In addition we extract further value through supplying gas, energy services and using our networks to carry fibre for telecommunications. ESB is the owner of the distribution and transmission networks in the Republic of Ireland (via ESB Networks) and Northern Ireland (via Northern Ireland Electricity Networks Ltd). In 2017 it had a 42 per cent share of generation in the all-island market (via Generation and Wholesale Markets) and a 34 per cent share of electricity supply in the all-island market (via Electric Ireland) with 1.4 million customer accounts.
ESB contributes almost €2 billion annually to the Irish economy through dividends, investments, taxes and jobs. ESB provides significant employment both directly, with over 7,790 employees, and indirectly through contractors and service providers. See www.esb.ie/about for more details.
About Bord na Móna
When Bord na Móna was first established over 80 years ago its remit was to deliver a sustainable industry in Ireland by harnessing the country’s indigenous and natural resources. Today we are on a journey of transformation as we work towards our goal to become the leading provider of sustainable solutions to Irish consumers.
Our transformation will be driven by unlocking the true potential of our land and creating value for the societies and communities to which it belongs.
Bord na Móna is an integral part of the economic, social and environmental fabric of Ireland and Irish life. As a key employer in the Midlands, we are conscious that our obligations go beyond purely commercial and environmental - and we realise that we also have a social responsibility to our employees and the communities we serve. It is our role, therefore, and our absolute priority to ensure that our long-term strategy delivers on all of these important areas in a robust and balanced way.
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.