Onshore wind developer, Bute Energy, has secured a project finance agreement of £160 million with Lloyds and Rabobank to construct its first onshore wind development in Caerphilly, South Wales.
Construction has begun on site in recent weeks.
Bute Energy was advised by Deloitte, Reed Smith, and Burgess Salmon. Copenhagen Infrastructure Partners (CIP) and the Welsh Pension Partnership have invested in Bute Energy’s development portfolio.
Twyn Hywel Energy Park is a 93.8 MW onshore wind energy park, the first in a pipeline of 12 onshore wind projects across Wales, with a total generating capacity of +2 GW. The development was granted consent by Welsh Ministers in November 2024. The portfolio could contribute 25% of the Welsh Government’s target for 100% of electricity demand to be met by renewables by 2035, and 18% of the UK Government’s Clean Power 2030 mission.
Sid Anverali, Project Director at Bute Energy, responded: “Securing the project financing for Twyn Hywel Energy Park is a landmark moment, not just for this project, but for Bute Energy as a business. This is our first project to move into construction, and that milestone reflects years of rigorous development work and the confidence our financing partners have placed in us. Twyn Hywel will demonstrate the value homegrown renewable energy infrastructure can deliver for Wales, and it sets the foundation for the pipeline of projects we are bringing forward across Wales.”
Tony Hable, Managing Director & Head of Infrastructure and Project Finance at Lloyds, added: “Backing this large scale South Wales wind project reinforces Lloyds’ leading role in infrastructure and project finance and our support for expanding the UK’s onshore wind capacity. We’re helping deliver critical renewable infrastructure that will power thousands of homes while supporting regional investment, skilled jobs and long-term growth, and are proud to work alongside sponsors to accelerate the energy transition and strengthen local economies.”
Pieter Plantinga, Executive Director at Rabobank, noted: “Rabobank congratulates Bute Energy and CIP on reaching financial close for Twyn Hywel Energy Park. We are proud to support Wales’ energy transition by unlocking critical renewable capacity. We value our relationship with CIP and are pleased to partner with Bute Energy on this project and its strong pipeline, and look forward to further collaboration with both parties.”
Bute Energy will explore investment partnership options for Twyn Hywel. This step will help unlock further development capital for the wider Welsh portfolio, with all capital recycled into future Welsh projects.
Bute Energy’s flagship shared ownership model and community benefit fund commitments will remain at the heart of all investment options.
This long-term strategy will:
- Maintain momentum across a 2 GW Welsh development pipeline.
- Unlock the capital required to deliver future projects.
- Support delivery of Welsh Government targets for 100% renewable electricity by 2035.
Bute Energy will continue to build Twyn Hywel bringing it into full operations and is committed to working with the Welsh Government to optimise the planning process and secure Wales’ position as a desirable place to invest.
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