Funding Deal Unlocks Construction of Twyn Hywel Energy Park
Bute Energy has closed a £160m finance agreement with Rabobank and Lloyds to fund construction of the Twyn Hywel Energy Park, a major wind farm project on the border of Caerphilly and Rhondda Cynon Taf. The project will comprise 14 wind turbines with a total installed capacity of 93.4 megawatts, enough to power 81,000 homes annually. At their maximum height, the turbines will reach 200 metres.
The wind farm is expected to become operational next year. SmartestEnergy, a renewables-focused energy company, has entered into a 20-year contract for difference (CfD) power purchase agreement (PPA) with Bute for the energy produced. The project was awarded a CfD in the UK Government's allocation round seven (AR7) in February.
First in £3bn Portfolio to Reach Construction
Twyn Hywel is the first project to move to the construction phase in Bute Energy's planned £3bn portfolio of onshore wind farms. If all are delivered, they could power the equivalent of 2.25 million homes over the next decade.
Martin Chown, chief executive at Bute Energy, said: "This is a defining moment for Twyn Hywel and for the role renewable energy can play in building long term prosperity in Wales. We are now moving from plan to delivery, bringing jobs, investment and opportunity into the communities closest to the project."
Jobs and Community Benefits
The project will support up to 300 jobs during construction, with an annual community benefit fund of £704,000 once completed. Bute Energy is developing a new shared ownership model, giving communities the opportunity to own up to 15% of Twyn Hywel Energy Park.
Chown added: "Our approach to delivering sustainable investment means that communities will feel the benefit from our investment in clean energy infrastructure – from jobs and skills, community energy, the community benefit fund and a share in the ownership of the project."
Welsh Government Support for Offshore Wind
Cabinet Minister for Enterprise, Connectivity and Energy, Adam Price, speaking at the Global Offshore Wind 2026 conference, said the new Welsh Government is keen to build an "open and collaborative relationship" with the offshore wind sector. He stated: "I believe that the offshore wind sector has the potential to deliver high quality sustainable career opportunities for people in Wales, which directly aligns with our productivity mission and retaining value for Wales."
Price highlighted the role of offshore wind in regenerating coastal communities: "The offshore wind sector has a key role to play into bringing about the regeneration of coastal communities in both north and south Wales." He emphasised removing blockers in planning, finance, and infrastructure.
Wales' Offshore Wind Landscape
Wales currently has three operational offshore wind farms generating 726 megawatts of electricity. Three development contracts for giant floating offshore wind farms in the Celtic Sea have been approved by the Crown Estate. One will be solely in Welsh waters, one straddles Welsh and English waters, and a third is solely in English waters.
Price noted: "The Port of Mostyn is one of the biggest successes of Wales's offshore wind sector with commercial-scale experience. It has contributed to the build-out of seven fixed bottom offshore wind projects and has created 240 highly skilled jobs for Wales." He also welcomed the UK Government's commitment of up to £64m to support Port Talbot as the first port in the Celtic Sea for floating offshore wind.
Industry and Political Reactions
Jessica Hooper, director of RenewableUK Cymru, said: "Offshore wind is Wales' next big industrial opportunity - from ports to production lines, powering a new wave of Welsh industry that over the next decade could be worth almost £5bn to Welsh businesses, and deliver more than 3,000 long-term, secure jobs." She called for decisive action on infrastructure and planning.
However, Janet Finch-Saunders, Conservative MS for Bangor Conwy Môn, called for a moratorium on large wind farm developments in Wales. She argued: "Wales is blessed with some of the most beautiful landscapes in the world, and they are a major reason why millions of visitors come here each year. While renewable energy has an important role to play, we must ensure that development is proportionate and does not come at the expense of our natural environment, tourism industry or food security and rural communities."
