Cloncreen wind farm

What was the aim of the work?

We provided technical due diligence for the lenders during the project financing phase for the 75.6 MW, 21-turbine, Cloncreen wind farm in County Offaly, Ireland. Bank of Ireland (BOI) and EIB will each supply half the approximate €100 million required to build the wind farm. Cloncreen wind farm is one of the first projects to be awarded a long-term contract under the Irish RESS-1 support scheme to reach financial close. This is a pivotal project milestone for developers Bord na Móna.

The scope delivered by Natural Power’s Advisory team included:

the review of a third-party energy yield study;
comprehensive technical due diligence reporting, including the review of the construction contract suite (civil and electrical balance of plant, TSA, owner’s engineer and construction services agreements), operational contract suite, planning and environment, design and technology, and construction programme;
the review of grid connection agreement, associated grid works and costs;
the review of financial model technical inputs, with particular focus on O&M costs post-contract term, as well as grid charges and transmission loss adjustment factors.

What was the outcome?

Bord na Móna reached financial close of the project in May 2021. This represents a major contribution towards Bord na Móna’s objective to supply one third of Irish homes with renewable energy by 2030, as well as one of Bank of Ireland’s largest funding commitments in the renewable sector to date.

Construction is underway and the project remains on track to reach commercial operations in autumn 2022. We’re providing continued support to the lenders throughout the construction stage, acting as technical advisor until commercial operation starts. This will include certification of debt draw downs, regular progress reporting and site visits.

What did Natural Power do to get this result?

We were able to combine our extensive local experience and market knowledge in Ireland with our wider experience and benchmarks across the European market to address lender queries, close out risks and recommend mitigations.

We provided an assessment of the project’s ability to achieve the key milestones by the respective deadlines set out in the RESS-1 Implementation Agreement. We were able to provide comfort that the project will be able to advance through financing, construction and grid connection in line with the key milestones associated with RESS-1 milestones.