Bute Energy has a £3bn Welsh onshore wind investment programme
16:28, 14 May 2026
Bute Energy is building wind turbines in the Valleys(Image: Local Democracy Reporting Service)
Renewables-focused energy company SmartestEnergy has agreed a long-term supply deal with Bute Energy for clean electricity generated from its Twyn Hywel Energy Park. SmartestEnergy has entered into a 20-year contract for difference (CfD) power purchase agreement (PPA) with Bute.
Located on the border of Caerphilly and Rhondda Cynon Taf, Bute’s Twyn Hywel Energy Park project will comprise 14 wind turbines with a total installed capacity of 93.4 megawatts. This is enough to power, at capacity, the electricity needs for around 81,000 households each year. The project was awarded a CfD in the UK Government’s allocation round seven (AR7), with a target commercial operations date late next year.
As renewable projects can be expensive, developers attempt to secure a guaranteed rate – or CfD – they can charge for each megawatt hour (MWh) of power they generate in the coming years.
If the price of electricity on the open market dips below that, subsidies will top up payments to companies. If the price is higher, companies have to pay back the difference to the UK Government.
As a transmission-connected onshore wind asset, Twyn Hywel represents a significant addition to the UK’s renewable energy infrastructure.
SmartestEnergy’s experience in transmission-connected wind assets and its competitive pricing were central to its selection as route to market partner, following a tender process in which Bute Energy was supported by investment partner Copenhagen Infrastructure Partners (CIP). Beyond its energy output, the project is expected to create around 300 jobs.
Will Russell, business development manager at SmartestEnergy, said: “Wales is at a defining moment in its energy transition and SmartestEnergy is proud to be part of it.
“Working with Bute Energy on Twyn Hywel Energy Park to provide a long-term route to market for a project of this scale reflects our focus on getting the commercial foundations right, so that projects like this can deliver lasting value for the UK energy system.”
Sid Anverali, project director at Bute Energy, said: “We’re proud to deliver this project with Smartest-Energy, and we intend to make it count, not just in megawatts but in skills, jobs and long-term investment for the communities around Caerphilly and Rhondda Cynon Taf.
“We knew we needed a long-term partner who could go beyond being a capable counterparty and one that shares our ambition for the next two decades and beyond. SmartestEnergy brings exactly that in deep expertise, genuine flexibility and a team that understands what a project of this scale truly demands.”
The project forms part of Bute Energy’s wider £3bn Welsh onshore wind investment programme.
The Twyn Hywel wind project further strengthens SmartestEnergy’s growing presence in the CfD market and transmission-connected space.