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 Government has a binding commitment under the EU Renewable Energy Directive to source at least 15% of its primary energy from renewable sources by 2020.
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 energy division has a portfolio of 34 operational wind projects, comprising 40 turbines with a generating capacity of more than 24.06MW’s. The sites are located in North and South Wales, Scotland and Devon, and each benefits from Government backed renewable energy incentives. Two projects qualify for ROCs while the other 32 sites qualify under the FIT scheme.
Why wind energy is an attractive trading opportunity
- The turbines themselves and the land represent tangible assets with a related value
- FIT and ROC subsidies provide a secure income stream for up to 20 years, the level of which is known up front for each site
- Stable income return
- There is a strong market for mature, energy generating assets which helps provide liquidity within the overall portfolio
“The UK is the windiest country in Europe and could power itself several times over using wind.”