Uncertainty hampering green energy investment – DLA Piper event
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.
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.”
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 pokcut and demand versus supply.
Guest speakers included Mark Cumbo, renewable energy expert in at Santander; Alex Marshall from fast-expanding Clarke Energy, Kevin Bush, chairman of start-up H2 Energy Group, Ross McArthur, managing director, renewables, at John Laing Investments, John Puddephatt from Statkraft and Mark Strickland, chief finance officer at Warwick Chemicals.
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.”
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, which will be used to heat the NEC, and is working on a project for up to 14 ground-mounted solar installations with Cumbo at Santander.
