Elgin Energy has secured £4.7 million of capital from Irish investors for the completion of a 250 MW pipeline of UK solar farms.
The renewable energy developer closed this latest round of fundraising in January and says it is planning a further fundraising round later this year. Demand from investors for green funds is rising, the company says, and it is expecting solar energy to become cost competitive in the UK wholesale market in late 2020.
“Over the past twelve months, we have seen further advances in the UK solar industry and a marked increase in appetite from investment funds to acquire solar assets,” said Ronan Kilduff, Managing Director, Elgin Energy. “With one of the largest late stage pipelines in the UK, we are well placed to address this growing demand.”
The fundraising round is Elgin’s fourth and the second completed in partnership with Cantor Fitzgerald Ireland. “Over the past year we have seen a major increase in demand for investment in green funds and demonstration of Environmental, Social and Governance (ESG) commitments,” commented Jack O' Keeffe Senior Director, Cantor Fitzgerald Ireland Corporate Finance.
Elgin Energy has delivered 21 projects totalling 230MW across the UK & Northern Ireland to date. These projects were delivered under the government operated Renewables Obligation (RO) scheme, which ended in 2016.
The UK solar market has matured since the support scheme ended and capital costs continue to reduce, Elgin says. Total installed costs of utility-scale solar PV in the UK have declined by almost 80 per cent from 2010 to 2018 and this downward trend is projected to continue.