Renewables experts Regen SW have today welcomed Nick Clegg and Vince Cable’s announcement today that the Green Investment Bank will be an ambitious institution that will aim “catalyse an additional £15 billion of investment in the green infrastructure.”
Touching on many of the points that Regen raised in its recent Role of the Green Investment Bank paper, Nick Clegg stressed that the bank would be an independent organisation with a potential initial remit to focus on offshore wind, waste and non-domestic energy efficiency.
Merlin Hyman, chief executive of Regen SW, said: “This is good news for renewables companies and good news for the economy as a whole, as it will give businesses and investors the confidence they need to invest in renewables.”
“When we released our report we called for the government to create a bank that would finance projects at the initial higher risk stage, support aggregation of projects, and provide due diligence expertise. The lack of ability to borrow for four years is a major weakness but today’s announcements show the government is moving in the right direction.”
“However, for the bank to be truly effective it’s important it doesn’t take the simple option of investing in safe projects that would simply compete with bank finance” added Merlin. “It must focus on leveraging the required private capital by financing commercially-viable projects at the earliest stages, where the highest risks are inherent.”
The Role of the Green Investment Bank was written and released by Regen SW earlier this year, following business-focussed event that it hosted at the University of Exeter. The report made four key recommendations to ensure that the bank is effective:
- Lever institutional and investor finance by investing at early, higher-risk stages to de-risk viable projects. Finance should then be recycled into new projects.
- Have an operational focus that aggregates and unlocks finance for medium and community-scale projects.
- Provide technical expertise of renewables projects and due diligence in order to provide confidence to financial markets.
- Align its remit with existing government policy, regulatory and market mechanisms that support renewable energy.
To download the full report, visit:
Notes to editors
To interview Merlin Hyman or any member of Regen SW, contact James Reddy on the number below.
About Regen SW
Regen SW is a not for profit company working to enable business, local authorities and other organisations to deliver renewable energy and energy efficiency and build a prosperous low-carbon economy in the south west of England. www.regensw.co.uk
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