Fund targets wind and hydro power

Onshore wind and hydropower developer Dawn Energy has launched a £5m fund to finance wind developments up to 1.5MW or hydro schemes up to 1MW.

Interested landowners must demonstrate their land is potentially viable for either scheme before the firm carries out its own feasibility assessment and will select the best sites to qualify for the fund.

Dawn Energy will enter a joint venture with the landowner and create a special purpose vehicle for the project, of which both parties will be shareholders. The firm will buy an equity share in the SPV and also provide senior debt finance for the construction and development of the project. The interest rate will depend on the size and cost of the project, however managing director, Waseem Hussain said it would be competitive with current market rates.

There is no set minimum or maximum amount available, although very small micro-scale projects are unlikely to qualify.

“In the current economic climate, we are keen to support landowners who want to construct their own single turbine or hydro power schemes but are finding it too difficult to obtain the appropriate funding from banks,” said.