Hydro Energy

Background to hydro energy

Hydro energy is one of the most established and least environmentally intrusive renewable energy technologies, and has been an electricity generating source for over 150 years. This track record means that levels of electricity produced through this technology can be forecast with a relatively high level of accuracy. Furthermore, hydro energy provides a natural weather diversifier for investors with solar and wind assets.

The UK successfully hit its 2020 target for carbon emissions and continues to work towards a net zero target by 2050. This is expected to strengthen support for clean energy generation to ensure we hit this target.

To achieve its renewable energy targets, generous Government support is being provided for the renewable energy sector through the Feed-in Tariff scheme (FIT) and Renewable Obligation Certificates (ROCs). FIT qualifying schemes are supported through the payment of tariffs, set at a fixed amount, for every kilowatt hour of energy generated through renewables. ROCs can be traded and are ultimately used by wholesale electricity suppliers to demonstrate they have met their obligations.

Participating in hydro energy

The three sites combined generate around 4,960MWh each year, the equivalent of powering over 1,700 homes, and reduces the UK carbon footprint by over 1,000 tonnes.
The installations qualify for the Government backed FIT scheme, with tariff payments guaranteed and index-lined to RPI until 2034 and 2035.

Why hydro energy is an attractive trading opportunity

  • The installations themselves and the land represent tangible assets with a related value.
  • Government renewable energy subsidies provide a secure inflation-linked income.
  • Strong established secondary market for mature and established energy generating assets, which helps provide liquidity within the overall portfolio.