A new company has formed to partner with landowners, commercial property owners and managers, to build, own and operate wind and solar power generating assets on sites across the UK.
Vigor Renewables has launched to take advantage of the new
feed-in tariffs (FiT), which come into effect at the beginning of next month. Also known as the
Clean Energy Cashback scheme, FiT guarantees an inflation-linked income for on-site
renewable energy projects under five megawatts in size for a period of up to 25 years.
Companies, such as Vigor, aim to tap into this emerging market by installing and operating the renewable technologies, and in return providing the owner of site or property with either rental income or discounted electricity prices for the duration of the feed-in-tariff payment period.
Vigor, which has secured
investment from AIM-listed investment company Low Carbon Accelerator (LCA), says it has identified “a strong pipeline of potential deal-flow”. It is currently negotiating options for over 15 sites, including agricultural plots for small-scale wind projects and industrial sites for solar projects based on roof and land space. The first project is scheduled to start during the summer of 2010.
Vigor has been established by former investment banker Oliver Hughes and engineer Said Bijary. Chris Simpson, chairman of small-scale wind turbine manufacturer Proven Energy, has been appointed chairman of Vigor.
Hughes said: “The feed-in-tariff has created a wealth of opportunity for renewable energy developers in the UK.
“We’ve seen a significant number of renewable energy opportunities across the UK. There’s no reason why
farmers and commercial property owners can’t become small-scale power producers in their own right.”
Low Carbon Accelerator invests £500,000 in Vigor RenewablesLCA said it had invested £500,000 in Vigor in the form of non-voting preference shares with rights over 90 per cent of the distributable profits. The ordinary shares are held by the management of Vigor, with rights over the balance of the distributable profits.
Dr Steve Mahon, chief investment officer for Low Carbon Investors, the investment manager for LCA, said: “Vigor is an exciting investment for LCA, and should provide long-term stable income from each of its projects in a relatively short space of time. It is also a great opportunity to transform the UK
building infrastructure and agricultural industry from users of power to active and profitable generators.
“Supply side policies such as feed-in-tariffs are exactly what is needed to encourage investment back into our energy infrastructure and we are pleased to be supporting the UK’s energy entrepreneurs.”
Related news:Green investment newsRenewables newsRelated links: www.vigorrenewables.co.ukwww.lowcarbon.gg