The U.K. Green Investment Bank plans to pull first investments in a $1.6 billion fund by the end of March for Britain’s drive for offshore wind power dominance, reports Renewable Energy World.com.
The lender receives interest from two investors, each for about 100 – 200 million pounds and smaller investors, commented, Ed Northam, head, investment banking.
The investors include U.K. pension funds as well as sovereign wealth funds. Company will get this fund to first close and it will go on to be successful, Northam said.
ALSO READ : Masdar enters into wind farm agreement with Oman
The fund is part of the first private capital to be controlled by the bank. The U.K. has 3.6 gigawatts of offshore wind, more than the rest of the world combined. The bank intends to use the fund to invest in operating assets, allowing project developers to recycle their cash back into new plans.
The lender with government support may rise about 400 -500 million pounds in its first fundraising period going to close before March 31. The bank itself will contribute as much as 20 percent of the funds, continued Northam.
Some of the bank’s existing offshore wind investments that also include a 25 percent share in the RWE AG’s Rhyl Flats project and a 10 percent share of the German utility’s Gwynt y Mor farm may be moved at market price as initial investments for the new fund, Northam said.
It is achievable for the bank to invest its target of 700 -800 million pounds this financial year, even though it put only about 102 million pounds into new projects in the first half. Major finance commitments will follow, added Northam.
ALSO READ : Gamesa to invest €100 m in Indian wind sector in 5 years
The bank was set up by the government to outgrowth spending on renewables, and has 3.8 billion pounds of seed capital.
If this year’s projects are included the investment will be 1.4 billion pounds of that amount since it began operations almost two years ago.
Sabeena Wahid
[email protected]