Hotbed, a leading UK private investor syndicator, has completed its second investment in renewable energy specialist Burcote Wind, reaching its target of GBP5.7 million.
Burcote Wind’s management team has a proven track record in identifying and acquiring suitable sites for wind farms, and developing them to planning permission stage. The company currently has options or exclusivity agreements over 8 sites, with a combined potential generating capacity of over 400MW, capable of powering around 300,000 homes.
In 2009, Hotbed Investor Members provided GBP3.3m of funding to Burcote Wind to identify, acquire and develop suitable sites. More sites were found than initially anticipated and the recently completed round of capital-raising will fund the development of the additional sites.
Russell Pope (pictured), Chief Investment Officer at Hotbed, says: “We are delighted to have completed this second round of fundraising. Government energy targets make the investment case for renewables compelling, but what makes Burcote Wind so attractive is the management team’s track record in gaining planning permission.”
“Burcote Wind understands just how crucial public support is to the success of an individual site, which is why it puts so much emphasis on finding the right locations which are both economically viable and acceptable to the local community in terms of their impact.”
“The fact that 70% of those attending recent public engagement events about potential wind farm sites in their localities were in favour of Burcote Wind’s proposals demonstrates that they are getting their targeting right.”
The recent Energy Market Reform White Paper issued by the Department of Energy and Climate Change sets out a number of incentives for energy companies to change to renewable resources, and this is likely to drive demand from energy companies for suitable renewable energy projects.
Burcote Wind focuses on identifying sites in Scotland, where the Scottish Executive has increased its targets to achieve a minimum of the country’s electricity consumption from renewable sources from 50% to 100% in 2020. The team previously identified and developed a wind farm site in Stirlingshire, which was sold with planning permission in place for over GBP16 million.
Recent figures demonstrate that wind farm applications south of the border are increasingly being refused planning permission, with 48% of applications in England and Wales refused last year, up from 29% five years ago. This is in contrast with Scotland where local government is being actively encouraged to invest in renewable energy production in order to create an additional revenue stream.
