Background to wind energy

The UK’s first commercial wind farm was built in 1991 in Cornwall and since then there has been significant growth in the industry.

As the windiest country in Europe, it is not surprising that wind is now the UK’s largest and most cost effective source of renewable energy.

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 help achieve this obligation, the Government offers various subsidies including the Feed-in Tariff (FIT) scheme and Renewable Obligation Certificates (ROCs). Qualification criteria for the FIT scheme and ROCs varies but both offer RPI linked prices for the energy generated through renewable sources, providing a secure income stream for shareholders.

Participating in wind energy

Elm Trading’s wind division acquires and develops wind energy installations. Wind and other forms of renewable energy generating assets provide a stable income return, with the benefit of long term Government backed subsidies, which are linked to inflation.

The portfolio currently contains over 60 wind farms across the UK. Together the sites generate over 350,000MWh of clean energy, sufficient to power almost 125,000 UK homes each year. This offsets over 75,000 tonnes of carbon each year, helping the UK work towards our net zero emissions target.

Almost all the assets are accredited for FIT or ROC subsidies to provide a secure income stream linked to inflation.

Why wind 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.