AES Subsidiary Secures Financing for 22 MW North Rhins Wind Farm in Scotland

The AES Corporation announced that its wholly-owned subsidiary, Wind Energy (North Rhins), Limited, secured £35.1 million in long-term financing to construct and operate the 22 MW North Rhins wind farm in Scotland, UK. The £35.1 million facility is a non-recourse senior project construction and term loan from Barclays Commercial Bank. The loan is repayable over 15 years from the start of commercial operation, which is scheduled for October 2009.

The wind farm, located near the village of Portpatrick, will consist of 11 Vestas turbines and will sell wholesale power, Levy Exemption Certificates (LECs) and Renewable Obligation Certificates (ROCs) under a 15 year Power Purchase Agreement (PPA) with E.ON UK plc.

“The North Rhins project is AES’s first wind power project in the UK, and underscores our commitment to provide sustainable and affordable power in Scotland. Our ability to secure funding demonstrates that financial markets are open to well-structured renewable projects,” said Marty Crotty, President, AES Wind Generation.

“Barclays Commercial Bank is delighted to have transacted this deal in partnership with AES. We remain committed to funding good projects in the sector; particularly where the risk and reward balance is optimal and where our lending activity supports the wider client relationship. Our financing of the North Rhins project for AES exemplifies this approach,” said Gareth Miller, Head of Barclays Renewables & Natural Resources Project Finance team.

AES has more than 1,000 MW of wind capacity in operation globally and recently secured financing for the St. Nikolas at Kavarna wind project through its subsidiary in Bulgaria, AES Geo Energy. In the UK, AES owns the 520 MW Kilroot oil/coal fired plant in Northern Ireland, and maintains its main development office for Europe, CIS and Africa in London.