In partnership with developers, Renewable Energy Ventures (REV), this type of funding marks an additional way for Thrive Renewables to contribute to the growth of renewable generation in the UK.
Managing Director Matthew Clayton comments: “With changes in legislation we see a growing number of projects seeking a trusted financial partner who can help them realise their project with the income from Renewable Obligation Certificates (ROCs). We are delighted to have been able to support and help finance these wind farm projects and work alongside REV and Santander UK plc on this transaction.”
With over 6,300 investors in Thrive, the company funds sustainable projects all over the UK to create genuine, long-term, positive impact – financially, environmentally and socially.
Thrive has worked with REV to support the timely procurement and construction of the Gevens project with three turbines in Kirkcaldy, Fife all being delivered by boat. It is now focusing on delivering Brotherton, a two-turbine project near Johnshaven, Aberdeenshire and on schedule to start generating green electricity to the grid in summer 2017.
“We appreciate the knowledge, expertise, speed and certainty that Thrive Renewables has brought to these projects. They were able to act quickly and put an innovative loan in place which has allowed us to retain 100% ownership and helped us to realise the project in time to benefit from the ROCs available at this time,” says Nicol Stephen, Director, REV.
Banks typically lend 75%-80% of project capital costs with developers still needing to find the remaining 20%-25%. Thrive Renewables provided a mezzanine loan to compliment the senior loan provided by Santander on both the projects.
Banks are increasingly looking for experienced partners to find innovative ways to structure finance for community or local renewables projects. The finance package for Gevens and Brotherton has been complemented by Thrive Renewables investment, and we see other opportunities to work together to support the growth of the smart energy system in the UK,” said Howard Whitehead, Head of Renewables, Santander UK plc.
The Gevens project is located 5km from Kirkcaldy close to the open water of Loch Camilla. The three 2.3MW Enercon E82 turbines are just under 100 metres tall.
The Brotherton project is located within the Brotherton Estate near Johnshaven in Scotland. The two 2.3MW Enercon E82 turbines are just under 100 metres tall.
For the Gevens site, the civil engineering works were delivered by contractor RJ McLeod; and on the Brotherton site by AE Yates. The construction process has been managed by firms Green Cat Renewables and Greenbank Accountants.
Thrive Renewables is looking to find and support other projects including community projects in a similar situation in the UK and this model could also be applied to other types of renewable technologies. Contact 0117 428 1580 or email info@thriverenewables if you have a renewable project seeking investment. Funding subject to Thrive’s investment criteria.
[1] Based on 2016 figures from BEIS for average household annual electricity consumption of 3,994KWh per UK home equivalent.
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Notes to Editors
Image of the Gevens turbines being delivered by boat available. For more information, case studies, customer quotes, or to arrange an interview, please contact: Rachel Glendinning, Communications Manager on 0117 428 1858 / 0748 408 6404 and Rachel.glendinning@thriverenewables.co.uk
Mezzanine financing is usually in the form of loan subordinated to the senior lender. The risks of mezzanine lender are similar to equity, but the owner of the asset maintains the ownership and once mezzanine and senior loan are paid, the owner continues to benefit from the project.
About Thrive Renewables
Now independent, Thrive Renewables was established over 20 years ago by leading ethical bank Triodos Bank, and has more than 6,300 investors and more than 90MW of renewable generation capacity under management. In 2015 Thrive Renewables delivered enough clean energy to meet the energy demand of 36,000 UK homes’ equivalent and saved 72,876 tCO2e emissions.
Thrive Renewables provides an opportunity to invest directly in a portfolio of renewable energy projects, delivering financial returns and contributing to tangible greenhouse gas emission reductions. Thrive Renewables also works with developers to develop and build new sources of renewable energy to create a smart energy system fit for the future. www.thriverenewables.co.uk
About Santander UK plc
Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. It has brought real competition to the UK, through its innovative products for retail customers and relationship banking model for UK SMEs. As at 30 June 2016, the bank serves around 14 million active customers with c. 20,000 employees and operates through 847 branches (which includes 58 university branches) and 69 regional Corporate Business Centres. Santander UK is subject to the full supervision of the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) in the UK. Santander UK plc customers are protected by the Financial Services Compensation Scheme (FSCS) in the UK.
[1] Based on 2016 figures from BEIS for average household annual electricity consumption of 3,994KWh per UK home equivalent
