UNEXPLODED ORDNANCE - Wind Energy Network

INDUSTRY ARTICLE
Energy Bill and the Green Investment Bank
a positive pointer in the right direction
With the recent publication of the Government’s Energy Bill and
the official launch of the Green Investment Bank, the industry has
certainly been given a substantial boost.
We have received many comments from various organisations so
we have selected the most informative to give our readership a
balanced view within the industry.
As mentioned in our last edition we will be introducing a new
Finance Feature to the magazine and we look forward to bringing
you advice and helpful information from our experts in future editions.
Green
Investment Bank
Earlier this year the Bank was established
as a public company, UK Green Investment
Bank plc. Following state aid approval from
the European Commission last month it is
now operational as an independent bank and
open for business.
In the period before state aid approval for UK GIB,
investments have been made on commercial
terms by BIS’s UK Green Investments team
(UKGI). To date, UKGI has committed £180
million to specialist fund managers to co-invest
equity in smaller waste infrastructure, energy
from waste, and non domestic energy efficiency
projects. Assets built up by UKGI have transferred
to the UK GIB.
Department for Business Innovation & Skills
Vince Cable, Business Secretary
“The Green Investment Bank - a key coalition
pledge - is now a reality. It will place the green
economy at the heart of our recovery and
position the UK in the forefront of the drive to
develop clean energy.
“Three billion pounds of government money will
leverage private sector capital to fund projects in
priority sectors, from offshore wind to waste and
non domestic energy efficiency, helping to deliver
our commitment to create jobs and growth
right across the UK. Having the headquarters in
Edinburgh is a powerful vote of confidence in the
Union, and a testimony to our commitment to
helping Scotland lead the green revolution.”
Edward Davey, Secretary of State for Energy
and Climate Change
“The Green Investment Bank will help attract
the capital required to allow the green
economy to blossom, encouraging investors
to market and kick-starting low-carbon and
energy efficiency projects. In combination
with our electricity market reforms, there will
be lasting economic benefit as a result, with
new expertise and jobs created, that will give
the UK a competitive edge.”
Lord Smith, UK Green Investment Bank Chair
“The Green Investment Bank has the potential
to be a game-changing component of the
UK’s low carbon economy, and a profitable
centre of excellence in specialist and
renewable investment.
“Over the coming months and years, I am
confident that our excellent team will put its
many years of expertise to work on building
the foundations of that sustainable economy,
and facilitating the important investments that
will ensure its long-term good health.”
www.bis.gov.uk
REA Chief Executive Gaynor Hartnell
“We are pleased that the first investment is
a bioenergy project. We hope that biomass
and waste-to-energy – as well as offshore
wind – will form a significant component of
the Bank’s activity. It is important to get as
much leverage as possible from the initial £3
billion and investment in a diverse portfolio of
renewable technologies will be helpful. As the
Bank’s funding expands in future, it would be
fantastic if it could follow in the footsteps of the
German state-owned bank KfW.”
www.r-e-a.net
Michael Moore, Secretary of State for
Scotland
“The UK Green Investment Bank is now
ready to have a real and positive impact on
investment in our green and renewables
sectors that will take them into new areas
and opportunities. We have the best of both
worlds: a headquarters in Edinburgh, at the
centre of Scotland’s thriving businesses and
asset management, coupled with a team
based in London, the world’s leading financial
centre.
“The next step is to put that expertise into
action and mobilise the additional investment
we need to take the UK towards a greener
economy. This is the first bank of its kind in the
world and this government has delivered it for
Scotland and the rest of the UK.”
Dr Gordon Edge RenewableUK’s Director
of Policy
“Now that we’ve been able to read through
the long-awaited details, it’s clear that
the Bill will create a strong framework for
investment. RenewableUK is looking forward
to refining those details with the Department
of Energy and Climate Change during the
Bill’s passage through parliament.
“So far this bill is on track and on schedule,
but we can’t afford any slippage if we are to
avoid a hiatus in investment around 2017,
when the financial support mechanism
switches from the Renewables Obligation to
Contracts for Difference.
“The Bill provides welcome clarity on how
CfDs will be allocated, reducing the financial
risk to developers. We also welcome the
move to set up a Government-backed body,
or counterparty, to write the contracts.
This will decrease risk and lower the cost
of capital. On initial reading, there are
some other terms which may need further
clarification – for example we want to make
sure that if any significant changes are made
to the regulatory environment in the future,
developers who’ve signed contracts should
not lose out financially.
www.renewable-uk
Maf Smith, RenewableUK’s Deputy Chief
Executive
“The opening of the Green Investment Bank
comes at a crucial time for the renewables
sector, the day before the publication of the
Energy Bill which will set the framework for
the entire energy industry for decades to
come. Today’s unequivocal assurances on
investment, from some of the biggest hitters
in the Cabinet, provide further tangible proof
that the renewables sector is regarded by
those at the heart of policy-making as one
of the main engines for growth. We trust
that a similar message will be forthcoming in
the Energy Bill so that we can deliver more
than 88,000 jobs in the wind wave and tidal
sectors alone by 2021”.
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www.windenergynetwork.co.uk