New Scottish hydro generation sites are set to be built following developer Green Highland Renewables’s £3.3 million investment led by Scottish Equity Partners.
Green Highland Renewables has been backed by Scottish Equity Partners’s Environmental Energies Fund, with Scottish Enterprise also contributing.
The Perth-based business will use the £3.3 million equity cash to develop its pipeline of hydro generation sites. It currently develops small-scale ‘run of river’ hydro projects and provides advice to landowners and communities through the process.
Scottish Renewables says that the hydro power market offers ‘significant unexploited potential, with Scotland displaying particular promise in the development of small and medium sized schemes.
Having access to ‘substantial’ development capital is important, Green Highland Renewables managing director Ian Cartwright says, due to the complex process of hydroelectric site development.
Cartwright adds, ‘This injection of capital means, in addition to servicing demand from our existing clients, we can actively seek out new clients potentially requiring help with site development.’
Tony Robinson, senior energy executive at Scottish Equity Partners, says that Scotland has an ambition to source 100 per cent of its electricity demand from renewable sources by 2020.
‘It’s companies like this [Green Highland Renewables], which are actively seeking more ways to increase our renewable energy output, that will help us achieve that ambition,’ Robinson comments.
Scottish Equity Partners’ Environmental Energies Fund is a £95 million secondaries pot created to buy and invest in UK-based green energy businesses which were originally supported by energy company SSE as well as the fund’s blue-chip capital suppliers: Lexington Partners, Hermes GPE, F&C Private Equity and Partners Group.
Scottish Equity Partners recently picked up the Venture Capital Fund of the Year prize at GrowthBusiness’s Investor AllStars 2012 awards on the back fo raising £295 million to invest in early-stage companies