Community-owned energy developer YnNi Teg has successfully secured funding for its third major renewable energy initiative, marking a significant milestone in Wales' transition towards sustainable power. The organisation has negotiated a substantial £412,000 loan from the Development Bank of Wales specifically for its Penrhiw Fach Wind Turbine scheme located near Aberaeron in Ceredigion.
Penrhiw Fach Wind Turbine Project Details
The 900 kilowatt Penrhiw Wind Turbine is expected to begin generating clean energy later this year, with the capacity to power approximately 750 homes annually. Over its projected 25-year operational lifetime, the turbine is anticipated to cut an impressive 9,750 tonnes of carbon emissions, contributing substantially to Wales' environmental targets.
What makes this project particularly noteworthy is its sustainable approach to equipment sourcing. The turbine has been recycled from a previous site in Germany and has undergone comprehensive refurbishment by Renewable Facilities Management, a specialist company based in South Wales that will also be responsible for the installation process.
Community Investment Opportunities
YnNi Teg has simultaneously launched a community share offer, inviting local residents to become direct energy owners while targeting annual returns of 6%. This innovative approach allows community members to invest in their own energy future while supporting local renewable infrastructure.
Beyond investor returns, the project is committed to accruing a minimum of £250,000 into a dedicated local community fund. This financial injection will support various community initiatives and projects throughout the turbine's operational life, ensuring that benefits extend well beyond energy generation alone.
Proven Track Record of Success
The Penrhiw Fach loan represents the third investment by the Development Bank of Wales in YnNi Teg's renewable energy portfolio. Established in 2018, the organisation's first project was the Geraint Gwynt Wind Turbine in Carmarthenshire, which has since been paired with the Bwlchgwynt solar farm to create Wales' first community co-generation site.
Together, these installations - comprising a 900 kilowatt wind turbine and 575 kilowatt solar array - are currently powering more than 1,000 homes while saving approximately 1,850 tonnes of CO2 emissions annually. Furthermore, they are generating an impressive £260,000 for community initiatives, demonstrating the tangible economic benefits of community-owned renewable energy.
The original Geraint Gwynt Wind Turbine received part-financing through a £1.3 million loan from the Development Bank (then operating as Finance Wales) in 2017, while the Bwlchgwynt solar farm benefited from a £222,000 loan from the same institution in March 2024.
Leadership Perspectives on Renewable Development
Jon Townend, executive director of YnNi Teg, emphasised the organisation's commitment to delivering a low-carbon, low-cost energy future with generating assets owned within Wales. "We are committed to helping to deliver a low-carbon, low-cost energy future with generating assets owned in Wales, so that the economic benefits can flow directly to Welsh families, businesses, and communities," he stated.
He further explained: "The support of the Development Bank means that we are driving positive environmental action and helping to build a resilient economy. What's more local people can benefit with the launch of our share offer that gives them the opportunity to take ownership of their energy needs. It will pay dividends not just to those that invest, but for Wales and the planet."
Nicola Griffiths of the Development Bank of Wales praised YnNi Teg's proven success in delivering sustainable, community-owned renewable energy projects. "YnNi Teg has proven success in delivering sustainable, community-owned renewable energy projects that increase community generation, while creating a more resilient Wales," she commented.
Griffiths added: "Under YnNi Teg's model, every pound invested benefits Wales, creating a multiplier effect that strengthens local economies whilst building energy independence. We're proud to be funding the development of community energy projects that contribute to our low carbon future and bring long-term environmental, social and economic benefits for local communities throughout Wales."
Funding Mechanism and Government Support
The funding for the Penrhiw Fach Wind Turbine has been sourced from the Local Energy Fund, which is managed by the Development Bank of Wales on behalf of the Welsh Government. This demonstrates the continued commitment of Welsh authorities to supporting community-led renewable energy initiatives that align with broader environmental and economic development goals.
This latest project represents another step forward in Wales' journey toward energy independence and environmental sustainability, while simultaneously creating meaningful economic opportunities for local communities through both investment returns and community funding mechanisms.
