The World's #1 Renewable Energy Network for News, Information, and Companies.

UK’s Negative Press on Wind Power Could Have Hurt Renewable Energy Fundraising

UK’s Negative Press on Wind Power Could Have Hurt Renewable Energy Fundraising

The U.K.’s negative media coverage of wind farms may have curbed a clean-energy fundraising, with the Ventus VCT Plc and Ventus 2 VCT Plc trusts receiving a fifth of the amount they targeted, a Temporis Capital LLP partner said.

“Through the fundraising period there were several negative press stories regarding wind in the U.K. in reference to the cost of living debate and the government’s forward energy policy,” Matthew Ridley, a partner at London-based Temporis, said in an interview. “This may have had an impact on our fundraising, even though wind is the least costly source of renewable energy in the U.K. and is well supported.”

The funds managed by Temporis raised 4 million pounds ($6.7 million) for wind and hydropower plants, compared with a goal of 20 million pounds. There will be enough money for projects this year when combined with funds from other parties, Ridley said.

Land-based wind turbines have met opposition from those who say they blight the landscape and are against green levies added to consumers’ power bills to spur investment in the industry. The ruling Conservative Party said in April it would end all subsidies for the technology if they win an election in a year.

Power from onshore wind farms is one of the cheapest forms of clean energy, costing about $84.8 a megawatt-hour compared with rates at greenhouse-gas emitting coal-fired power stations of $82.1 a megawatt-hour, according to Bloomberg estimates.

Minimum Target

Temporis will invest the money raised in a 10-megawatt wind farm and two hydropower plants totaling 3 megawatts, Ridley said. The funds have a minimum target dividend from these projects of 5 pence a share from the second year and the figure is expected to rise to 6 pence to 8 pence a share, he said.

“We see good opportunities to create attractive risk adjusted returns from wind investments versus other technologies,” Ridley said. “With hydro one of the main attractions is the stable and long-term cash flows. Hydro schemes rely on tried and tested technology that has been around for a long time.” Projects can also run for more than 25 years.

Britain is also amending rules for some trusts that benefit from tax breaks from July, which may affect the Ventus funds and make it unlikely they will be able to invest in many renewables technologies, Ridley said. Temporis will study how best to raise future capital once the legislation has been published, he said.

“We have a strong team with a good track record and a significant pipeline of opportunities, and we expect to continue deploying capital in this space,” Ridley said.

Copyright 2014 Bloomberg.

Lead image: Bad press via Shutterstock.

 

CURRENT MAGAZINE ISSUE

03/01/2015
Volume 18, Issue 3
file

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

FEATURED PARTNERS



EVENTS

Doing Business in Brazil – in partnership with GWEC, the Global Win...

Brazil is one of the most promising markets for wind energy.  Ranke...

Energy Storage USA 2015

Energy Storage USA is the leading conference in the United States focuse...

Wind Power Central America

Wind power projects are expected to reach 46GW of total installed capaci...

COMPANY BLOGS

SunEdison Expands Residential Market Offerings with New PPA, Sales ...

SunEdison has largely focussed on the commercial and utility-scale solar...

Deadline for Inclusion in Solar Power World's Top Solar Contractors...

UPDATE: The official deadline for the Solar Power World T...

Are You Ready for a Natural Disaster?

Guest post by Jenna Clarke  Living in the Shenandoah Valley of Virg...

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS