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13/12/2013

Renewable growth

As the energy debate in the UK continues, this winter’s fuel price rises have only sharpened the focus of a wide-ranging debate that encompasses wholesale energy costs, the green levy as well as future generating capacity.

First introduced in the 2008 Energy Act, feed-in tariffs have increased the levels of electricity generated from renewable sources, with onshore wind and hydro-electric currently the most popular sources in the UK.

Finance Wales has now invested or co-invested in a number of Welsh SMEs capitalising on both onshore and hydro-based opportunities. 

Long-term potential

15 - 25 year agreements and cost-based payments for all electricity generated, as well as supplied have helped establish the market. 

They’ve also encouraged investment in the technologies that harness renewable energy and increased their affordability.

Opportunities for small as well as large-scale generators

The tariffs have been structured for large and small-scale operators in urban and rural environments.

Investment structured to suit key project stages

Finance Wales has built up its expertise in the renewables sector and is keen to back more projects.  We can invest in green and brownfield sites and structure investment packages to fund all key project stages, including:

  • Site identification and preliminary assessment.
  • Site development, surveys planning and grid applications.
  • Turbine purchase and installation.
  • Commissioning.
  • Added to this we can align our repayment profiles to key milestones.

Set for further growth

Over 4,000 onshore turbines currently generate around 7,000 megawatts of power in the UK and despite recently announced subsidy reductions, this figure is set to grow.

The sector is now well established and the underpinning technology cheaper and more mature. Added to this, the UK still has some way to go before it generates 30 per cent of its power from renewable sources in line with its EU target.

What next?

Contact us to find out how we can structure the right investment for your client.