Third anniversary marks early loan repayment

This summer marked an important anniversary for North Uist’s community owned renewables project.
UistWind successfully completed the full early settlement of the Scottish Government’s Energy Investment Fund (EIF) Junior Loan, just three years after the two turbines at Clachan were first commissioned.

The early repayment was made possible by a refund following a previous SSEN overcharge, and as a result of final construction costs coming in under budget, which meant there were funds remaining from the original construction loan.

The Junior Loan had incurred interested charges of 7.5% and its early repayment marks a major milestone for the company, allowing it to save £400,000 over the lifetime of the project and to support the community benefit aims in the longer term. 

Catherine MacLeod, Uist Wind Chair, said: “This project has faced numerous challenges during its development, construction and operation, including the impacts of COVID-19 on resources, such as the availability of contractors to support the project. So being able to reach this point in the project so early on is fantastic news for UistWind, for company investor members and for the whole community.”
This summer also marked the first investor returns for the 220 members who purchased community shares in 2018, over half of whom are based in Uist.

The1.8MW community-owned wind farm in North Uist was first conceived in 2009, overcoming many hurdles before finally setting up in business. The company says its two turbines have performed well to date, generating more energy than expected this summer due to higher than average wind speeds of 7.8 m/s, compared to 5.3 m/s at the same time last year.

Half the rent which the project pays to North Uist Estate is distributed to the Claddach Illeray township with a calculation based on performance.

Chair Catherine MacLeod added: “The project continues to utilise the skills of local contractors where possible, and alongside the rent, investor member return and indirect benefits, is already adding to the local economy. Although the creation of a community fund is still a way off, mainly due to a requirement to first pay down the main bank loan, I am delighted that the community and investors are now seeing some benefit from the project. It has certainly been a struggle getting to this point, but we can be confident that the project is now in a good place.”