Abundance Generation has launched a unique investment platform to give people the chance to invest directly in renewable energy generation from as little as £5 to as much as £50,000.
Offering returns of between 6.75 – 8 per cent, Abundance aims to attract £1.4million by the end of September 2012, for its first 500kW wind turbine project in the Forest of Dean.
Abundance is offering the opportunity to invest in its first renewable energy project in partnership with Resilient Energy Great Dunkilns plc (REGD) at Great Dunkilns Farm in the Forest of Dean.
Investors will buy debentures in the project to secure a return based on a share of the profits produced by selling renewable energy with an effective rate of return of between 6.75% and 8%.
Abundance has several million pounds worth of renewable energy projects planned for its first year of operation, with the mission of reaching £250 million of investment over five years. Funded by small investors seeking regular cash returns, the vision is to see the growth of sustainable energy production significantly strengthened through community engagement and investment.
Louise Wilson, Joint Managing Director of Abundance, said, “We call it ‘democratic finance’. Our mission is to create a renewables revolution by giving people the opportunity to invest in renewables projects – whether they have £5 or £50,000 - and enjoy a good regular return.
“We know today’s investors want more control over where their money is going and how it’s being used. Abundance is like a “building society” investing in renewables infrastructure for the 21st Century. Our customers’ money goes directly into projects generating growth and revenue in the real economy.”
Abundance builds on the success of peer to peer lending and other forms of people powered finance. It’s ambition is that in just a few years, tens of thousands of individuals across the UK will be actively involved and investing in renewable energy production, helping build a new green economy for the UK.
With growing concerns about rising energy costs, threats to energy security and tough carbon reduction targets, there is an urgent need to build new green energy.
Bruce Davis, co-founder and Joint Managing Director, said: “There’s a massive gap in the funding of renewable energy. The current well-intentioned, individually organized projects are good as far as they go, but are relatively inefficient and can’t scale up quickly enough to meet the need. By bringing together lots of investors, Abundance can attract levels of funding needed to build large scale projects costing tens of millions of pounds.”
The scheme has a wide appeal for the increasing numbers of people who want to make a difference with their money – providing people with an opportunity to help shape the development of clean energy infrastructure in the UK, and be rewarded with a good financial return.
According to Abundance’s customer research carried out over the last three years, people want greater control over where their money goes and how it is invested. Small investors from all walks of life don’t just want a good return on their money, they also want it to be used for building something real, productive and of benefit to society. Community energy projects give people the opportunity to make a significant difference.
Community ownership of energy projects also helps attract local support and overcome public opposition facing renewable energy development, such as wind farms. This has been critical to the success of renewables in European countries, such as Denmark and Germany, where around 86% and 50% of wind energy generation is locally owned.
Abundance Generation is regulated by the Financial Services Authority, Abundance projects are open to all UK residents over 18 years of age online.
The REGD project is the first of a number to be offered by The Resilience Centre based in the Forest of Dean.
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