KKR, Temporis Capital to invest in Scottish wind farm project

Kohlberg Kravis Roberts (KKR) and Temporis Capital will offer £8m in funding for the Srondoire community wind farm in Argyll and Bute, Scotland.

The funding is said to form a part of the £200m lending facility launched in collaboration with the UK Green Investment Bank (GIB) earlier in November 2014.

KKR co-head of credit Nat Zilkha said: "Non-bank lending is becoming an increasingly important source of capital for many businesses and sectors. We have deployed almost $5 billion globally via our different lending platforms.

"This is KKR’s first investment in the UK renewable energy sector as renewable power becomes a crucial part of the UK’s energy mix."

GIB and KKR have agreed to provide up to £100m to the lending programme, which will be managed by Temporis Capital.

Earlier in May, GIB secured approval from the European Commission to expand its investment mandate to include community-scale renewables, particularly small-scale hydro-electric and onshore wind projects.

The funding represents KKR’s first investment in UK renewable energy market.

The Sròndoire wind farm with three turbines is a joint venture between the Lithgow family of Ormsary and the Broadfoot family of Stronachullin.

The project will be partly owned by the local community, allowing it to have commercial benefits.

KKR had earlier invested in renewable energy across globe including the US, Mexico, Australia, France, Italy, Spain, Portugal, and South Africa.