Aurium bets on renewables investment

17 February 2016


Specialist finance house Aurium Capital Markets has warned that UK government energy policy is putting energy security at risk.

Aurium believes that plans to phase out all coal-fired power stations in ten years will increase the chance of blackouts occurring as well as reliance on renewable energy.

The firm has therefore announced plans to raise up to £500 million for investment in the renewable energy sector. It says that it will target institutional investors, who are placing a growing focus on investment opportunities that have low correlation with equities and bonds, and which can provide a steady and attractive long-term return.

"The decision to remove coal fired stations increases the risk of the lights going out in the UK because it will have a negative impact on our energy capacity," said Steven Blasé, Partner at Aurium. "Coal's share of UK electricity generation was 30 per cent in 2014, and renewables accounted for approximately 19 per cent. This winter, for example, our overall excess energy capacity is just 1.5 per cent.

"The announcement over coal makes the UK's reliance on renewables even stronger, and we believe that the growing focus from investors for assets that provide long term steady returns with low or no correlation to other more mainstream asset classes makes this an increasingly attractive investment proposition for institutional investors."

Aurium that other factors driving the market for renewable energy include falling long term infrastructure costs in this sector, rising power prices and the fact that the UK is behind on its emission reduction targets.



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