UK VCT investor Albion Ventures has committed £1.3m, in partnership with Welsh based developer Dragon Hydro, to support the development of a single 300kW hydropower scheme on the Afon Cadair river in Gwynedd, Wales.
The site in Wales will benefit from the renewable feed-in tariff regime and is expecting to generate its first electricity in Q3 2013.
The installation is forecast to generate an average 1,300MWh of electricity per year, enough to power up to 300 households.
This investment is Albion’s seventh into renewable energy and continues the firm’s strategy of expanding into this sector.
Dragon Hydro will provide funds managed by Albion with a long-term yield as well as the potential for capital growth.
Michael Kaplan, partner at Albion Ventures, said, “We are extremely pleased to make our first hydro investment with Dragon Hydro as we continue to diversify our holdings across a range of renewable energy technologies.
“Hydropower is the oldest renewable technology and we are very pleased that the government continues to support small-scale hydro through feed-in tariffs.”
Albion Ventures specialises in VCTs with around £230m under management. It was formerly known as Close Ventures and was acquired by its management in early 2009 from Close Brothers Group.
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