Commercial Finance Specialists

Figures released by the Co-operative Bank show that it has provided £500 million in asset finance to renewable energy projects in the UK since 2007.

The bank places considerable importance on its ethics, supported by its record of funding 108 renewable energy projects with capital values of up to £25 million.

The projects supported by commercial funding include onshore wind farms, hydro-power, biomass, and combined heat and power systems. The bank has even recruited a designated renewable energy team to deal with logistical issues, such as planning permission, on behalf of its clients. These projects tend to be taken on by small developers seeking to diversify income, the bank reports.

Renewable energy projects in the UK currently receive around £1.4 billion per year in government funding through the Renewables Obligation Certificates (ROC) scheme.

Richard Wilcox, head of social banking at The Co-operative, said: "At a time when many communities are fighting for survival from the wider economic challenges, small to medium renewable energy schemes provide an opportunity for communities to become sustainable, creating local jobs and diversifying local economies."

However, he expressed concern at delays to a review of the ROC scheme, which could hinder investment in renewable energy projects.

"There is a real danger that this could grind to a halt if the review of ROCs and pending review of feed-in tariffs are not completed quickly and with a view to nurturing our fledgling environmental industries."

Hence, the asset finance support offered by the Co-operative Group is a valuable resource in the progression of renewable energy schemes.

Looking forward, the banking division of the Co-operative Group aims to double its funding allocation to £1 billion by 2013, as part of its 'Ethical Plan' for corporate responsibility.