Aberdeen Standard Investments said its infrastructure debt team has provided more than £43 million of private debt to finance six operational hydro-electric schemes in Scotland.
The hydro schemes — all situated on rivers in the Scottish Highlands — were built by developer Gilkes Energy and associated company Gilkes Hydro Investments Limited (GHI), which owns and operates 17 renewable energy projects across Scotland.
Aberdeen Standard Investments has sourced the investment for three clients — Phoenix Life Limited, the Standard Life Investments Secure Income and Cashflow Fund (SICF), and Standard Life Assurance Ltd.
“The investment provides a long-term reliable income stream, some of which is linked to inflation,” said Aberdeen Standard.
The hydro schemes are all accredited under the UK Government’s “Feed in Tariff” programme, designed to subsidise and promote renewable energy generation.
Participation in this programme ensures a fixed price per megawatt hour for the energy produced, protecting project revenues from fluctuations in electricity prices.
The six hydro-electric schemes are:
* Strathan, Loch an Laoigh and Uisge Dubh in Strathcarron, Wester Ross
* Pattack, just north of Laggan
* Kendrum Burn, Lochearnhead
* Ben Glas, on the Glenfalloch Estate, at the north end of Loch Lomond
Jeremy Allcock, Head of Infrastructure Debt at Aberdeen Standard Investments, said: “We recognise the importance of hydro-electric projects in meeting UK renewable energy targets; these projects are a focus area for our investment team.
“The funding we have provided will help GHI to grow and at the same time will provide our investors with stable and predictable returns over 19 years, helping to protect them from inflation and to meet their liabilities.”
Aberdeen Standard Investments is the asset management business of Standard Life Aberdeen plc and manages £575.7 billion of assets worldwide.