The Elster Repowering wind farm project involves replacing 50 outdated wind turbines with 16 modern, highly efficient ones in less than two-thirds of the original area
The loan is for the implementation of the Elster Repowering wind farm in Saxony-Anhalt, Germany. (Credit: Markus Distelrath from Pixabay)
VSB, an international project developer specialising in wind energy and photovoltaics, has secured funding for one of Europe’s most extensive wind farm repowering initiatives – the Elster wind farm.
The project is being financed by LBBW (Landesbank Baden-Württemberg) and DZ BANK (Deutsche Zentral-Genossenschaftsbank) totalling €211m.
VSB concluded the project financing arrangement and achieved financial closure in late August 2023. This financing milestone marks a historic achievement for VSB, representing the largest and most significant financial undertaking since its establishment in 1996.
The loan has been earmarked for the realisation of the Elster Repowering wind farm in Saxony-Anhalt, slated for operation in the first half of 2025. This ambitious project by VSB stands as one of the most substantial repowering endeavours in Europe, specifically within the Wittenberg district.
It involves the replacement of 50 outdated wind turbines with 16 modern, highly efficient ones, all within less than two-thirds of the original area. This transformation is expected to result in a sixfold increase in energy output. Ultimately, the wind farm’s capacity will reach 105.6MW, generating approximately 235GWh per year – sufficient to power 67,000 households comprised of three individuals each.
The total loan value amounts to €211m, of which €175m is secured on a long-term basis, boasting a maturity period exceeding 20 years.
VSB Finance head Lucas Förschner said: “We are proud to have found in LBBW and DZ BANK two trustworthy and highly professional partners to help us finance this major project. We look forward to implementing the project together.”
Legal firm Watson Farley & Williams played a pivotal role as the legal advisor in this transaction.