Pwer generation company Albion Community Power has invested £1.8m in partnership with Welsh developer Infinite Renewables to fund the development of a 500kW single wind turbine on a freehold site in Tredegar.

The site is located on the land next to Waldron Commercials, Tafarnaubach Industrial Estate.

The turbine is expected to produce its first power in the summer of 2015 and is predicted to generate more than 1,400MWh of electricity per year. ACP, which is the majority shareholder in the project, has forecasted an inflation linked IRR of 13 per cent for a period of 20 years.

This is ACP’s second 500kW wind turbine investment having invested £1.5m with Infinite Renewables in February this year to fund the development of a 500kw single wind turbine in Blaencilgoed, South Wales.

ACP currently plans to sell the electricity produced by the site to Good Energy and will also explore the option of selling the electricity directly to the Tafarnaubach Industrial Estate.

David Gudgin, Managing Director of ACP said: “Brownfield wind developments such as Tafarnaubach are core to ACP’s investment strategy and we look forward to backing further projects of this type over the coming months. Single turbine sites are proven to have delivered excellent returns and can play a key role in providing cheaper power to the local community.”

Will David, Infinite Renewables, said: “This is our seventh project with ACP and Albion VCTs, totalling more than £13m, and together we have built a considerable amount of expertise that enables the development process to be managed highly efficiently. South Wales provides tremendous potential for brownfield wind development opportunities and we hope to extend our partnership with ACP to additional projects over the coming months.”