Renewables specialist Urban Wind agrees new £30m funding deal

GLASGOW-BASED Urban Wind has agreed a funding deal that could help tackle one of the biggest problems facing people who want to develop onshore renewable energy projects.

The wind turbine specialist has enlisted Zouk Capital to provide £30m investment in schemes that have gone through the planning process but currently lack the funding necessary to develop them.

The company expects the funding will be sufficient to fund around 20 developments across the UK.

The programme could have a notable impact in Scotland where Urban Wind is working on seven consented sites which are going through the funding process.

The privately-owned company has advised clients on two sites that are operational in Scotland, with three in the build phase.

Urban Wind expects the cash provided by Zouk to be used to fund the development of small facilities that could generate enough power for around 90 homes.

Scottish Renewables welcomed news of the funding deal, stating that small and medium scale wind installations can play a key role in helping communities, landowners and businesses reduce their electricity bills and help to meet renewable energy targets.

Stephanie Clark, policy manager, onshore renewables at the industry body, said: “Access to finance and the upfront capital costs of renewable energy developments are a major barrier to those wishing to install systems.”

Paul McCullagh, Urban Wind’s chief executive, said the deal provided a powerful endorsement of the future that wind technology has in the UK.

“We look forward to working with Zouk to bring wind turbine technology plans off the drawing board and into reality on sites across the country,” said Mr McCullagh.

The deal reflects strong interest in the renewable energy sector among financiers. These can be attracted by the potential for schemes to develop long term revenue streams by selling power to the national grid under the feed-in tariff scheme.

Colin Campbell, managing partner at Zouk Capital, said: “Our partnership with UrbanWind offers us an exciting opportunity in on-shore wind and fits our fund’s capital gain strategy well.”

With offices in London and Singapore, Zouk Capital has €600m (£430m) funds under management.

On Monday Green Highland Renewables, Scotland’s largest independent small-scale hydro scheme developer was acquired by a London-based infrastructure investor in a deal thought to be worth millions of pounds.

Urban Wind works with landowners on schemes that range from renting land on which turbines will be installed to sharing owner- ship of generating facilities.

The company has around 70 sites across the UK in the planning and development phase.

Around ha l f are in Scotland.

Zouk will buy consented sites from UrbanWind. It will then develop them through a joint venture set up between both companies.

A chartered surveyor by training, Mr McCullagh worked in the telecommunications industry before joining Urban Wind in 2013.