Ubi Leasing and Abf Leasing fund construction of two photovoltaic power plants.
As mentioned earlier in this issue (see Determining value, DLL takes on energy sector , UniCredit dives into renewables and Leasing could benefit from biogas revolution), the expansion of the green energy sector is providing significant opportunities for lessors with sufficient asset knowledge.
It has been reported that UK company Lombard is to finance a multimillion pound package to supply at least 6,000 UK homes with free solar power installations,
The RBS subsidiary is said to have supplied the package to renewable electricity company A Shade Greener, which is now installing solar panels on houses in northern England – a measure that could see domestic electricity bills cut by up to 50%.
Domestic solar photovoltaic panels usually cost between £15,000 (€18,000) and £25,000 to install. However, A Shade Greener will be installing them for free, and collecting the feed-in tariff, which is guaranteed for 25 years.
The tariff is aimed at creating grid parity for renewable energy and means regional and national electric grid utilities have an obligation to buy electricity from suppliers of renewable power.
The company will initially focus on Yorkshire, Derbyshire, Nottinghamshire, Lincolnshire and Humberside, but is soon to extend into the Midlands and the South West.
Elsewhere in British leasing, Barclays is involved in a similarly large-scale deal to finance “smart meters” being rolled out to UK homes.
In Italy, lessors Ubi Leasing and Abf Leasing are involved in a more traditional renewable finance deal, funding the construction of two photovoltaic power plants for construction business Gruppo Speziali.
Ubi Leasing, part of Italy’s Ubi Banca, will finance a solar plant in Calabria, in southern Italy, for a total of €6.2m.
The second plant, also to be built in Calabria, will be financed by Abf Leasing, part of Banca Popolare dell’Emilia Romagna for €4.6m.
Ubi Leasing also recently won another €5m contract in southern Italy, for the financing of a photovoltaic plant in Vasapulli, Puglia.
The Brescia-headquartered lessor was selected by 9REN, a European developer and contractor of solar plants.
Corporance SpA, an Italian merchant bank specialising in renewable energy projects, has advised 9REN on the deal.
The new power plant should produce an estimated 1m kWh yearly, equivalent to the energy needs of 400 households. Construction on the site has already begun.