‘More certainty needed for green energy investment’
GREEN energy is a sector in growth mode, but uncertainty over future government policy is hampering investment.
This was the message at a key event held in Liverpool and organised by leading law firm DLA Piper as part of the International Festival for Businesses’ Low Carbon Week.
More than 70 investors, developers, funders and local authority officers attended the seminar hosted by DLA Piper energy partners Darren Walsh and Natasha Luther-Jones.
With continuing concerns from businesses over security of energy supply highlighted by a recent CBI survey, more investment is needed in renewable energy schemes if the UK is to hit its low carbon targets.
Darren Walsh said: “Currently renewables account for 11.3% of total energy generation, the majority of this comes from offshore wind. The government’s target is for green energy to contribute 15% by 2020.”
Natasha Luther-Jones, added: “The picture is a positive one, deals are being done, and the funding is there, particularly for tried and tested technologies, and where there is planning consent, the right land and grid connection.”
“Our panel did express concern over the current government policy, which has been a long-standing concern for the sector, particularly in the light of the recent Cabinet reshuffle.
“Most investors want more certainty too from government on CfDs (Contracts for Difference), before they will commit to finance.”
The discussion focused on wind, solar, embedded combined heat and power and anaerobic digestion technologies and covered financing, technology, government policy and demand versus supply.
Guest speakers included: Mark Cumbo, renewable energy expert in at Santander; Alex Marshall from fast-expanding Knowsley-based Clarke Energy, Kevin Bush, chairman of Liverpool-based start-up H2 Energy Group; Ross McArthur, ,anaging director, renewables, at John Laing Investments; John Puddephatt from Statkraft and Mark Strickland, chief finance officer at Deeside company Warwick Chemicals.
Mr Walsh continued: “It was really great to have the input from H2 Energy, which is a start up company in AD (Anaerobic Digestion) technology, which has demonstrated that small businesses can win financial backing in this market.”
In the North West DLA Piper is working closely with the Stobart Group on a £100m 20MW CHP biomass plant in Widnes, which is close to reaching financial close.
The team is also acting for Stobart Group in respect of a potential investment in Imperative Energy which is developing a CHP gasification project in Solihull in the West Midlands, which will be used to heat the NEC and is working on a project for up to 14 ground-mounted solar installations with Mark Cumbo, director of renewable energy at Santander.
Natasha Luther-Jones and her colleagues in the Leeds energy team have been working on a number of major projects across the UK and Europe. Among their clients is German wind energy developer Energie Kontor which is highly active. She also acted for the listed investment fund Greencoat UK Wind on its £52.9m acquisition of the 24 MW Maerdy Wind Farm in the Rhondda Valley, South Wales.
