Bloomberg News

Guinness Starts Fund for U.K. Clean Energy, Energy Efficiency

March 02, 2012

Guinness Asset Management Ltd., a London-based investor, started a 10 million pound ($15.9 million) fund to invest in clean energy and energy efficiency companies in the U.K.

The fund, which will close on April 5, will invest in about five companies, Shane Galwey, fund manager, said today by e- mail. It will operate as an enterprise investment fund, which is a U.K. government-backed system offering tax breaks to investors in “higher-risk” companies.

“We expect many new investors to make EIS investments in 2012 as a means of diversifying their portfolios, generating returns with low correlations to the equity markets and making investments that have attractive tax benefits,” Galwey said in an e-mailed statement.

Britain is aiming for 15 percent of its energy to come from renewable sources by 2020. The U.K. currently generates about 1.3 percent of its electricity from hydropower, according to the Department of Energy and Climate Change.

The fund has identified opportunities in the biomass and hydropower sectors, according to the statement. “We are fond of hydro projects, although we will only invest once all planning and environmental consents are in place,” the fund manager said. It will consider investments in other sectors that are eligible for government subsidies.

To contact the reporter on this story: Louise Downing in London at ldowning4@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


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