With the prospects of the oil industry remaining uncertain and OPEC no closer to reaching a deal, building up the country’s renewable energy resources is becoming increasingly important.
Indeed, the renewable energy industry is increasingly looking like an attractive investment prospect. Today, Greencoat UK wind announced that it had raised 147 million profit from the issue of of 133.6 million new individual shares pricing at 110p. Greencoat UK is a wind farm infrastructure fund and is part of the FTSE-250 index.
Chairman Tim Ingram said that the funds would be used to reduce the company’s short term acquisition facility in full, enabling it to “pursue a pipeline of attractive investment opportunities”.
“The company’s long term borrowings will remain in place,” he said.
This follows an announcement that wind turbines could soon supply most of the UK’s electricity, according to the boss of Dong Energy in comments made last week, as the company looked to sell off its oil and gas divisions.
“When you look back in 10 years from now, we’ll see this period around 2016-17 as an inflection point,” Henrik Poulsen the company chief executive, said.
“The cost of offshore wind, also solar and onshore wind, is coming down at such speed that nobody could have predicted.”
Dong Energy is currently the UK’s largest windfarm operator with current and future stakes making it in total able to produce five gigawatts (5GW), surpassing that provided by the proposed Hinkley Point C nuclear reactors.
Hinkley point C was just recently given the go ahead by MPs, with the nuclear power plant regeneration suggesting that the government remains nonetheless unconvinced regarding the potential of wind energy. According to EDF, the energy plant is set to be completed by 2025 and will cost around £24 billion.
The plant has not been without controversy, as speculation circulated that the government had failed to disclose that the tax-payer would have to pay for any unforeseen costs.
When asked whether this was the case, chief executive of EDF, who are involved with the project, Vincent de Rivaz stated “Categorically not”.
This comes just after the UK fell out of the top ten global energy rankings for the first time back in October. Executive chair of the Energy council Joan MacNaughton, said of the development:
“Renewables are increasing as a percentage of the UK energy mix but their output is not yet at a level where energy security can be guaranteed.”
She also added that the“myriad different changes” made by the Government since 2013, including the continued uncertainty relating to Brexit.