Triodos Renewables

How is it social?

This fund's investee companies contribute 23.5MW of renewable energy to the national grid.  It makes sure that the impact of its investee companies on the local community is kept to a minimum (noise pollution etc).

What is its business model?

Triodos Renewables fund aims to support the growth of the renewables industry in the UK by investing in a portfolio of operational projects such as Caton Moor, investments such as Mellinsus, and emergent technologies such as Connective Energy. 

Revenues come from a proportion of the income of each of the investee companies, dividends from investing and from exiting investments.  According to the website, investors in the fund (and there are over 4,000), are people 'who want their money to make a practical difference in the fight against climate change, and recognise the long-term business potential of renewable energy'. 

The fund has paid regular dividends to its shareholders. Its July 2008 share issue was oversubscribed and raised £10 million from both public and institutional investors. The fund portfolio includes eight investments with a total capacity of 23.45 MW, saving approximately 60,000 tonnes of CO2 emissions and producing enough clean, green renewable energy for the equivalent of over 15,500 homes.

Its history

Triodos Renewables (the fund) was launched in 1995 as The Wind Fund.  It changed its name as it diversified its investment criteria include other renewable technologies.  In 1998 it entered into a joint venture with The Wind Company (UK) to run Haverigg II, a cluster of four wind turbines in Cumbria.  It also acquired Beochlich, a hydro electric project in Argyll, West Scotland.   

In the last 3 years the fund has made a number of significant investments:  In June 2005 it acquired the  entire share capital of Ness Point, a wind turbine in Lowestoft, Suffolk that has the capacity to power 1,750 homes.  Then, in May 2006, it bought a 33% stake in Connective Energy. The other partners in the project are Doosan Babcock, a multi-specialist energy company, formerly Mitsui Babcock, and the Carbon Trust.  Connective Energy develops technologies to capture and reuse waste heat and is hoping to get two contracts for its technology during 2008. In September 2006, the fund acquired Caton Moor in Lancashire (a turbine cluster that powers 10,000 homes) and Sigurd (a single wind turbine in Orkney) through its purchase of the Hainsford Group Ltd. In June 2007 the fund acquired a small shareholding in Marine Current Turbines Limited, a tidal technology company. It also, in the same year, invested in a 60% stake in Triodos Mellinsus Projects Limited, a portfolio of early stage onshore wind projects. The current thinking is that these wind projects, once they have achieved planning permission, will become investee projects of the fund.  

The company originally had a stake in E-Concern, which it sold to finance recent acquisitions.

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