Nearly three-quarters (71 per cent) of advisers are backing renewable energy investment given the inflation protection it provides, according to a study by Albion Community Power (ACP).
ACP is a power generation company launched by UK venture capital specialist Albion Ventures.
Despite receiving support from advisers as an attractive investment opportunity, the majority (58 per cent) of IFAs rated their knowledge of the range of renewable energy investment schemes currently available as ‘below average’ or ‘weak’.
While the majority of advisers are familiar with solar and wind energy, the research showed that three quarters (75 per cent) were unfamiliar with biomass, 74 per cent with biogas and 64 per cent with hydro-electricity.
The research reveals a renewable energy knowledge gap among advisers at a time when demand for alternative sources of energy has never been greater and is expected to continue growing. This is due to the UK Government’s commitments and the need for energy security in the face of decreasing supply from traditional sources including oil, gas and coal.
ACP is looking to raise funds from retail investors and family offices. Investors in ACP will gain exposure to income-producing inflation-linked returns targeted at approximately six per cent p.a. It is also intended that shares in ACP will be eligible for Business Property Relief (BPR), so investments in ACP should obtain relief from inheritance tax after just two years.
ACP aims to be a major producer of community scale renewable energy by raising up to GBP100m to power some 35,000 UK homes. The company will invest in a range of renewable energy projects using proven technologies including brownfield wind, solar, hydro-electricity, biogas and biomass.
David Gudgin, head of renewables at Albion Ventures, says: “Our research shows that advisers are under no illusion of the growing importance of renewable energy as an investment opportunity given the inflation protection benefit it provides. However, there is a clear ‘knowledge gap’ regarding the range of renewable energy investment schemes available to investors. More needs to be done by the industry as a whole in generating awareness of this sector.
“ACP offers investors a compelling opportunity to capitalise on the UK’s transition towards clean energy production. Albion already has a strong track record in managing successful renewable energy projects using proven technologies such as brownfield wind, solar and hydro and we are well placed to develop ACP into a winning proposition.”
