Albion Community Power (ACP), a renewables business launched by venture capital firm Albion Ventures last June, has invested in its first project.
ACP will partner with Welsh developer Infinite Renewables to fund the development of a 500-kilowatt (KW) single wind turbine in Blaencilgoed, southern Wales. The firm is investing £1.5 million (€1.8 million; $2.5 million).
The wind turbine, which will supply electricity to a local quarry, is expected to become operational in September. It is predicted to generate over 1,700,000 kWh of electricity per year, and will qualify for government subsidies such as feed-in tariffs (FiTs).
“The energy industry is changing, and smaller scale schemes will be playing an increasingly important role. We are excited by our first investment and are looking forward to backing other new projects in the coming months,” said Volker Beckers, chairman of ACP.
ACP, which is currently on the road to raise £100 million, reached a first close on an undisclosed amount last summer. The company seeks to raise money from retail investors and family offices, and targets a long-term total return of 6 percent.
It aims to become a community-scale renewable energy business capable of generating enough power for 35,000 UK homes. It will invest in projects including brownfield wind, solar, hydroelectricity, biogas and biomass.
Beckers, a former chief executive of UK-listed RWE Npower, was appointed chairman of ACP in October. The fund is managed by David Gudgin, head of renewables at Albion Ventures.