Renewable energy generation and energy storage group, Gaelectric, has raised $84 million in funding for its portfolio of on-shore wind energy projects on the island of Ireland.

The portfolio comprises 164 MW of generation capacity across 13 projects which the Group plans to develop out by 2017, representing a total investment in the region of $325 million. Gaelectric is developing a further pipeline of 510 MW of wind energy projects centred on Montana to supply power markets in the Pacific North West and California within the 2014 to 2017 timeframe. Gaelectric has also concluded a framework agreement with leading German turbine manufacturer Enercon which will see Enercon technology deployed on all the Gaelectric sites covered by the current funding round for its Irish projects.

The funding is led by Swedish group, Proventus Capital Partners, who specialise in providing development capital through private corporate loans to mid-sized companies for growth. Gaelectric was assisted with the transaction by legal advisers, McCann Fitzgerald, and by RBC Capital Markets.

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The funding provided by Proventus Capital Partners has been complemented by a senior debt package structured and provided by Nord/LB. This debt financing has been used to finance the construction of a 13.8 MW wind energy project in Northern Ireland which is currently being commissioned by Gaelectric at Carn Hill, Co Antrim, Northern Ireland.

Commenting on the successful conclusion of its latest funding round, Gaelectric USA President, Éamonn McGrath, said: "The funding we have secured will, together with our agreement with Enercon, underpin the delivery of our onshore wind energy portfolio in Ireland which comprises approximately 164 MW of projects and represents a total investment cost of approximately $325 million. We are particularly delighted with the opportunity to partner with Proventus, Nord/LB and Enercon, all of whom have international reputations and track records that will be of immediate benefit to Gaelectric."

Mr McGrath added: "We will also build on our success in the UK and Irish markets by adding another 510 MW of Procurement Category 1 wind projects from Montana to California for delivery from 2014 to 2017 to Gaelectric's growing renewable energy portfolio.

"This amount of generation capacity opens up a range of strategically important options to Gaelectric Group. It will allow Gaelectric transition from being a pre-revenue, renewable energy development Group to an energy development and operating Group with significant assets in Ireland producing renewable power, generating turnover and cash for the Group, and further returns for our shareholders and investors."

(CD)