UK fund manager Tritax has launched a new renewable energy fund, called Tritax Renewable Energy Fund No.1, which will invest in four individual 500kW wind turbine developments, reports Fundweb.
The new fund has a minimum investment of £20,000 and targets an average annual return of around 15.6% over its life of six-year.
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For the new fund, the company will work with G2 Energy which specialises in the engineering, development and construction of 500kW turbine sites, Fundweb report says.
The developments, included in the fund, fall into the most profitable band of the Government’s feed-in-tariff scheme. The government feed-in-tariff scheme was introduced to assist the company’s engaged in solar or wind energy by paying a set amount for each unit, in kilowatts, of electricity generated.
The fund aims to offer an inflation proof income stream whilst focusing on capital preservation. The majority of the income for the fund is secured by a 20-year RPI-linked contract with the government under the feed-in-tariff scheme, the publication said.
Henry Franklin, a Tritax partner, said: "Now is the right time to exploit the long term business potential for renewable energy as it moves from a niche to a more mainstream offering allowing investors to benefit from a much more ‘tried and tested’ investment class, Government supported income, proven technologies, experience, track record and meaningful growth potential."
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