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Lenders look to invest in renewable energy
Published: 2010-04-14 09:05:22
Renewable energy projects will attract investment to, and help the delivery of, regeneration schemes across the UK, according to Euan McVicar, head of energy projects at law firm McGrigors.
"There are some useful trends in the market, including feed-in tariffs," he said, in advance of the SocInvest 2010 summit on regeneration finance where he will speak on the topic. "There is a massive increase in interest, particularly in social housing and other developments where there is a long-term landlord."
Just as important, lenders are also happy to look at investing in energy projects, McVicar said.
McVicar highlighted benefits for local authorities, energy companies and developers. "It’s attractive to developers, who stand to make more money from schemes," he said. Combined with additional revenue streams from feed-in tariffs, there are already significant incentives for including district heating and other forms of energy within the business case for regeneration schemes. Post-election, there may be additional incentives for energy projects.
McVicar added that it can be easier for energy projects to navigate the planning process if they are incorporated within regeneration programmes – and they boost the chances for regeneration projects too. "A green wrapper for a regeneration scheme is seen as a good thing," he said. "All political parties are keen to support this."
The benefits from taking an integrated approach to regeneration and renewable energy apply to small as well as large projects. "It works at all levels," McVicar said. "But as you scale up, the benefits will be greater."
The UK has been slow to capitalise on "energy opportunities", but there are precedents elsewhere. "Most of Europe has taken up to the opportunity," McVicar claimed. "Scandinavia and Germany have already implemented district heating as part of their development projects.
"Once we get through the election period, there is no reason why we should not see some of these schemes come in." That could be on new projects, or to "help stalled projects where renewable energy can be integrated into existing schemes", McVicar said.
He will detail his findings, case studies and predictions to delegates at SocInvest 2010. Read the programme here.