Energiekontor’s Withernwick II Wind Farm becomes the first “subsidy free” wind farm in the UK

In May 2018 Energiekontor UK reached financial close on its Withernwick II wind farm in the East Riding of Yorkshire. This project is believed to be the first UK wind farm to be financed without the requirement of government subsidies or support mechanisms. Previously land based wind farms had access to a number of government initiatives to encourage renewable energy deployment. The last UK program for wind farms above 5MW “Contracts for Difference” (CfD) was closed to onshore wind in 2015.

Since this time Energiekontor UK has endeavored to find a “route to market” by working with our stakeholders and power off takers so that permitted developments may be realised. As a result the Withernwick ll project has been fully funded solely with the projected revenues from a Power Purchase Agreement (PPA) with one of the UK’s leading companies supplying consumer goods. At completion of the wind farm build the company will be supplied with renewable energy from the site, secured by the long term PPA contract.

Withernwick ll is an 8.2 MW extension to the existing Energiekontor wind farm built in 2013. Senvion will supply four MM92 turbines with project finance structured by German lender NORD/LB Norddeutsche Landesbank. Civil Engineering Company Cheetham Hill Construction will start the construction in June 2018. The site scheduled to be commissioned in early 2019.

Peter Szabo, CEO of Energiekontor AG, said “We congratulate our team in the UK on this outstanding success. Our extensive experience and reputation as a trusted partner in the UK market, has once again persuaded a large industrial partner to sign a PPA. The financial close of the Withernwick II project, the UK’s first profitable wind farm under pure market conditions, shows that our strategy to reduce costs by improving efficiency is bearing fruit. It also underlines our pioneering role in the quest to realise wind farms and solar parks with a lower levelized cost of electricity than fossil and nuclear alternatives. It is our most important contribution to our vision of a society whose electricity needs are fully covered by renewable energy.”

Energiekontor AG was formed in 1990 in Bremerhaven Germany. The group has built over 117 wind farms across several European countries and has UK development offices in Glasgow and Leeds.