Property Asset Manager Palmer Capital has partnered with Low Carbon to launch the UK’s first fund targeting UK solar energy farms. Utilising pension and insurance funds, approximately £52 million will be raised to acquire three of the 5MW solar parks constructed and operated by Low Carbon.
Roy Bedlow, CEO Low Carbon, said: “Solar photovoltaic power is a commercially available and proven technology with significant potential for long-term growth. It is estimated that by 2050, PV will provide around 11% of global electricity production which is the equivalent of reducing carbon-based emissions from the average annual electricity use of 253 million homes. However, in the UK solar PV only accounts for around 0.1% of total generating capacity, whereas Germany, which has a similar solar resource to the UK, has installed 6GW to date and regularly produces 20% of its daytime energy requirement from solar power. These three British solar parks that will be acquired by the Fund represent an important first step to enabling the development of yet more renewable energy and help us shape a profitable low carbon economy.”
Commenting on the Solar Fund, Alex Price, CEO of Palmer Capital said: “The Solar Fund demonstrates Palmer Capital’s willingness to use both its real estate and financial expertise to identify opportunities to structure and bring forward innovative, leading-edge funds which maximise returns for clients. We are one of the first property companies to invest into renewables, and one of the first to see a new alternative institutional asset class emerging from the cross over between real estate and renewable energy schemes. Low Carbon is a market leader in this field and we look forward to working with them in this exciting new project.”
This news comes as international investors continue to look to the infrastructure market as a viable alternative to Government bonds, utilising the solar feed-in tariff payments to generate a steady income stream that matches existing long-term liabilities. Many of the other large-scale projects constructed in the UK are expected to be sold in the coming months.
