Hopes of £2m in Chinese cash to power investment in Scottish wind turbines

A WIND energy specialist in Livingston expects to secure £2 million funding for projects in Scotland from wealthy investors in China who are turning their attentions to the UK.

Orenda Energy Solutions has signed a deal with China ZhuangHe Investment under which the advisory firm will raise debt from high net worth clients that will be used to cover the cost of developing wind energy schemes in Scotland.

Orenda plans to use the funding to install about 10 turbines on sites it has identified across Scotland.

The company expects the turbines will generate enough revenue to allow the debt to be repaid within seven years and to guarantee an annualised return of eight per cent for investors.

Orenda is confident it will win a good response in China. It said a growing number of high net worth Chinese individuals are eager to invest money in the UK.

The company recently secured the funding required for six turbines it plans to install in Scotland from a consortium of US investors.

Orenda Energy was introduced to China ZhuangHe Investment by The China Britain Business Council in the UK. The council’s manager in Scotland, James Brodie, said: “This is a great example of how exciting investment opportunities in Scotland are beginning to catch the attention of Chinese entrepreneurs.”

He added: “At the beginning of this year, for the first time ever, China’s outbound investment exceeded its inbound investment and China’s high net worth individuals are an important part of this new development.”

Orenda has three turbines in operation in Scotland. All are in Dumfries and Galloway.

Turbine operators can sell the electricity they generate under the official feed-in tariff support scheme for renewable energy.

Orenda runs its European sales and marketing operations from Livingston, where it employs six people. The company designs its turbines in North America and has them manufactured in China.

It has four turbines in Italy.