The Royal Bank of Scotland (RBS) has been revealed as the largest lender to renewable energy projects in the UK during 2011. A report published by Infrastructure Journal shows that RBS loaned more than £230 million to UK renewable energy projects last year, more than double that of their nearest competitor.
The journal also calculates that lending across the renewable sector in the UK increased by nearly 200 percent from 2010’s levels. In 2010 deals worth £290 million were completed, which increased to £856 million in 2011.
Jamieson Thrower, Senior Director in RBS's Structured Finance Division said: “RBS is playing its part in financing the transition to a greener economy. We have built up an impressive level of expertise in this area, which shows in the growing number of transactions we completed last year. With EU members committed to sourcing 20 percent of their energy from renewables by 2020, the sector is likely to remain busy over the next few years.”
RBS attributes its increased activity in the sector to a surge in biomass developments after the technology’s ROC banding was reviewed in October. The review was encouraging for onshore wind and proposed greater subsidies for enhanced biomass generators while leaving incentives for other forms of biomass power mostly unchanged, easing uncertainty across the industry for continued future development.
