Renewable Energy

The Background

The Government has a long term commitment to the increased use of renewable energy. This is driven partly by the commitments given to the EU to generate 15% of all power from renewable energy by 2020 and partly by the needs of energy security. A potential shortage in supply towards the end of this decade also dictates an increase in renewable energy investment as part of the solution.

To encourage the generation of renewable energy the Government has specific policies of subsidies, in the form of ROCs, FiTs and RHIs to encourage distributed efficient generation of energy at the point of use. ROCS, FiTs and RHIs offer long-term support at pre-determined levels, and all three are relevant to ACP.

For more information on policies of incentives FiTs/ROCs/RHIs.

ACP’s Strategy in the Renewable Energy Sectors

Albion Community Power's aim is to be one of the UK’s largest producers of community scale renewable energy, building capacity of around 30MW at a cost of £100 million. This would represent approximately 0.1 per cent. of the UK target by 2020, equivalent to powering over 35,000 homes.

ACP will have a controlling interest in its energy projects and have a diversified portfolio of energy projects with assets across a number of established power generation methods. Risk diversification will be provided by investing with a number of partners and in a larger number of installations.

ACP is assisted by the expertise of the Albion Group, one of the largest venture capital investors in the UK. Albion has an 18 year track record of investing in asset backed businesses. To date Albion has invested approximately £42 million in a wide variety of renewable energy projects.

ACP's chosen power generation methods are:

Run-of-river hydroelectricity produces electricity from rivers without the need for a dam.
Blaencilgoed Wind Turbine
ACP targets wind installations on industrial sites which will often have local requirements for the power generated and more direct connections to the National Grid.
AD can use organic matter from either agricultural crops or waste food from households to generate electricity.
Solar PV is the third largest energy source in terms of global installed capacity and is growing dramatically in the UK.

Other power generation methods

In addition, ACP will consider other power generation methods provided that the returns are attractive and the technological risk minimal.