Development Bank backs third YnNi Teg renewable project in Ceredigion

Daniel Bevan - Editor

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Community-owned energy developer YnNi Teg has secured its third round of backing from the Development Bank of Wales with a £412,000 loan to part-fund a new wind turbine project near Aberaeron.

The funding will support the Penrhiw Fach Wind Turbine in Ceredigion, a 900kW turbine expected to begin generating electricity in 2026.

Once operational, the project is forecast to supply clean power to around 750 homes a year and cut 9,750 tonnes of carbon dioxide over its 25-year lifetime.

The turbine has been recycled from a former site in Germany and refurbished by South Wales-based Renewable Facilities Management, which will also install the equipment.

Alongside the loan, YnNi Teg has launched a community share offer, inviting local residents to invest in the scheme, with a target annual return of 6%.

The project is also expected to contribute at least £250,000 to a local community fund.

The Penrhiw Fach loan marks the third investment by the Development Bank in YnNi Teg projects.

The company’s earlier Geraint Gwynt Wind Turbine in Carmarthenshire, established in 2018, was part-financed with a £1.3 million loan in 2017, when the bank was still known as Finance Wales.

That site has since been paired with the Bwlchgwynt solar farm, which received a further £222,000 loan in March 2024, creating Wales’ first community co-generation site.

Together, the wind and solar installations are now powering more than 1,000 homes, saving an estimated 1,850 tonnes of CO₂ each year and generating around £260,000 for community initiatives.

Jon Townend, executive director of YnNi Teg, said: “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.

“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 said: “YnNi Teg has proven success in delivering sustainable, community-owned renewable energy projects that increase community generation, while creating a more resilient Wales.

“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.”

The Penrhiw Fach loan has been provided through the Development Bank-managed Local Energy Fund, which is backed by the Welsh Government’s climate change, energy and planning directorate.

The fund offers up to £2 million for small renewable projects that cannot access commercial finance, with repayment terms of up to 20 years.