New Wind Farm Blows £44m into Ayrshire and D&G Economies

The wind farm was developed and constructed by Vattenfall – one of Europe’s largest utilities - and will be owned by Greencoat UK Wind PLC. It was inaugurated today at a ceremony attended by Vattenfall’s Chief Executive Officer, Anna Borg, and Laurence Fumagalli of Greencoat UK Wind. Many of the organisations involved in the construction of the wind farm also attended the ceremony.  

Laurence Fumagalli, Greencoat UK Wind and Anna Borg, Vattenfall CEO

Consumers will have a regular reminder of how onshore wind is helping to reduce emissions in our daily lives every time they go to the supermarket. Some of the power from the site will supply drinks manufacturer A.G. Barr, famous for its iconic Irn Bru, after a Corporate Power Purchase Agreement was signed in 2020.

Throughout the development and construction phases, Vattenfall was keen to ensure as much investment as possible into the local and wider Scottish economies.

Rather than contracting supply chain businesses on a purely cost basis, local businesses were invited to tender for the many and varied opportunities which come from onshore wind development and construction. As a result, £44m of the total spend of the project went to nearby firms providing everything from environmental assessments to legal and communications advice to branded high-viz jackets.

In addition, an estimated £38m community fund from the wind farm will support people in the nearby area to take ownership of local buildings, develop tourism and recreation, and strengthen skills and resources to deliver a range of projects in the local community such as the purchase of a hotel and a bike track.

Spending with Scottish businesses totalled £93.4m, including construction contractor R.J. McLeod. With 500MW of further onshore projects worth £600m in the pipeline potentially operational by the end of 2030, Vattenfall believes that onshore development offers a vital opportunity to help ensure the UK’s energy security, combat climate change, and regenerate local communities.

Speaking at the inauguration event at South Kyle, Vattenfall’s Chief Executive Officer Anna Borg said:

“Onshore wind is essential to energy security, reducing carbon emissions, and economic development. Vattenfall has a strong pipeline of onshore wind projects in Scotland, reflecting our confidence that it is a stable environment for ongoing investment.

“South Kyle Wind Farm is an excellent example of investors, national and local authorities, and local communities working together to deliver the infrastructure we need for fossil-free living.”

Scottish Minister for Energy Gillian Martin said: 

“Scotland is a world leader in onshore wind, and this is in large part thanks to the continued investment of developers such as Vattenfall. Projects like South Kyle wind farm are key to helping us deliver on our ambitions for net zero and in creating a lasting legacy for our communities. 

“As well as generating cheap, clean energy, it is vital that our energy transition supports a just transition to net zero for everyone, which is why I particularly welcome Vattenfall’s South Kyle Community Fund, which promises to inject £38 million of investment into the local community in the 25 years of its operation.” 

Bryan Wright, Vattenfall’s Director of Project Delivery Onshore said:

“Vattenfall’s goal is to build a world free from fossil fuels. But we believe that as well as combatting climate change and ensuring energy security, investment in clean energy can be targeted to provide opportunities for local communities and enable economic growth.

“I would like to thank all our partners who have made South Kyle a reality and look forward to the wind farm benefitting Scotland for many years to come.”

Aleksi Ehtee, Senior Asset Manager at Church Commissioners for England, said:

“As long-term stewards of land and the environment, with a responsible investment approach grounded in respect for both people and planet, we are pleased to see the progress made on-site by Vattenfall. The Church Commissioners are committed to supporting the transition to a net zero economy, and sustainable infrastructure like this will be crucial to driving the greening of our energy supply.

“Vattenfall's focus on proactive community engagement and boosting local economies has made them an ideal partner for us, and there has been a clear benefit to businesses within the area, which will continue once the wind farm is fully operational.”

Graeme Clark, R J McLeod’s Joint Managing Director said:

“It’s fantastic to see South Kyle Wind Farm being celebrated at this event. We have worked on this project with Vattenfall and their partners for over 5 years, and are reaching the culmination of a true collaborative approach by all involved. This is our fourth project with Vattenfall who recognise the skills and experience of our staff and operatives, as well as our track record of using local resources and suppliers, and we look forward to jointly delivering further important energy assets.”

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Find out more about South Kyle by watching the project film.

Notes to editors 

1. The acquiring entity is wholly owned by a London Stock Exchange listed investment trust, Greencoat UK Wind PLC, a fund dedicated to investing in and owning operational onshore and offshore wind farms in the United Kingdom. The acquirer currently owns or has an ownership stake in 46 operating wind farm assets across the UK, with a net generating capacity of over 1.6 GW.
2. Vattenfall will provide a route-to-market PPA to South Kyle for 15 years following commissioning and also manage the asset on behalf of Greencoat UK Wind for a minimum of 10 years once operational.
3. AG Barr’s facilities have previously been supplied with electricity from Vattenfall’s renewable portfolio  across the UK, but it will now be supplied with electricity from South Kyle. Find out more here.
4. Vattenfall has a development pipeline of 500MW of onshore wind projects across the whole of the UK.  

Find out more about South Kyle Wind Farm here.