Eco Renewable Systems Seeks Investors to Advance U.K. Wind PlansSally Bakewell
Eco Renewable Systems Ltd., a U.K. wind farm company, is seeking funds to develop land into approved wind projects for sale to utilities.
Eco Renewable, based in Castle Cary, southwest England, plans to raise about 5 million pounds ($7.7 million) selling new shares to investors, John Morgan, chief executive officer, said. The company is developing four ventures in Wales that could host 116 wind turbines, he said in a phone interview.
Wind energy is at the heart of Britain’s plans to boost clean power supplies to reduce emissions and stave off energy shortages. The U.K. plans to install 13 gigawatts of onshore wind by the end of the decade compared with about 5.8 gigawatts.
“Large utilities have shied away a bit from the early stage developments,” Morgan said. “They want the certainty of planning beforehand, then they will spend their money and buy it. There is a ready market for them,” he said. Eco Renewable plans to gain consent for the plants before selling rights to build the sites to utilities. Companies developing U.K. wind include RWE AG, SSE Plc and EON SE.
Consented U.K. onshore wind sites sell for about 350,000 to 450,000 pounds a megawatt, according to researcher Bloomberg New Energy Finance.
Eco Renewable has so-called option agreements at four zones, allowing it to carry out the land studies required to apply for building consent. Eco Renewable plans to sell shares to institutional and other investors, as well as turbine makers looking to enter the U.K., to fund the work.
The parks each have a capacity of more than 50 megawatts, enabling them to use a planning system designed to speed up the approval process for large projects. The facilities will have a total output of 290 megawatts to 348 megawatts. The company is seeking to sign further option agreements and is also negotiating an accord for a plant in Oxfordshire, England.