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Investment OpportunitiesIn recent years investors all over the world have paid increasing attention to the renewable energy industry.

Investments in renewable energy projects tend to be long-term.

Top 10 Reasons To Invest In Renewable Energy Projects In Partnership With AMDC Energy Limited

1. Level of Returns

A typical internal rate of return (IRR) on a renewable energy project would be 6-8% at current rates.

By working in partnership with AMDC Energy it is possible for returns from direct investments in renewable energy projects to reach 11%, sometimes more if the project hasn’t been built yet, or if there are tax breaks included for which some projects qualify, giving an uplift to our investors of 30%.

Another part of the reason returns can be higher than on investments of a comparable risk profile is down to the Feed-In Tariff (FIT), the government-backed subsidy that pays developers of renewable energy a top-up amount for producing clean energy instead of the alternative fossil fuels and nuclear. This amount is set at the date a project is installed and changes only to rise in line with inflation for 20 or so years – the typical term for which a FIT is guaranteed.

2. Stability of Returns

The sun and wind are pretty much constant.

The subsidies renewables attract are also constant – and rise in line with inflation (see below). In the past, there have been concerns over the reliability of the existence of the subsidy itself but following a court case in 2012 that ruled the government could not retrospectively pull the FIT, these fears have been calmed.

The only real variables in the returns come from changes to electricity prices, which are governed by the market and are harder to predict than subsidies, but there are historical trends.investpic3. Inflation-beating Investment

Because of the FIT, but also because of energy prices, which contribute to returns in two ways. First, if energy prices are going up, the developer is receiving more revenue for the energy they produce and some of this goes back to the investors. Second, energy prices are included in the Retail Price Index (RPI) and in fact, have a large bearing on it as energy makes up so much of household spending.

Hence energy prices push up RPI and therefore also push up the index-linked FIT.  Consequently, investors in renewable energy projects might be paying more on their energy bills, but are getting some money back in the form of higher returns on your renewable investments.

4. Transparency

You know where your money is going. We will keep you updated in a transparent way with all the stages of the project.

You can’t siphon money off into a renewable energy project. It is there, you can drive up to it, touch it and discuss it over a cup of tea with us.

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5. Length of the Investment Term

Short-termism is everywhere in life, but nowhere is it more damaging than in finance. Think of the havoc wreaked by payday loans, for example. Long-term means building something worthwhile, not cutting and running. And renewable energy investments are long-term.

Abundance Generation debentures, for example, are for 20 years or so, in line with the duration of the FIT payments (capital is at risk). It does provide a big boost to returns to keep your money in something that is (crucially) inflation-linked, for a longer period.

If you re-invest any payments you receive from the investment before the end of the term, so much the better. For sure, there is a market for renewable energy investments which is developing.

6. Low Risk of Technology Failing

Renewable technologies are relatively new, but they are pretty dependable (one reason why insurers are quite happy to issue warranties for performance of panels and turbines for 20 years or more, and also why pension funds, which need sturdy places to put pension savers’ cash, like investing in them).

Once some panels or a turbine are installed, then barring some exceptional circumstances, they can be relied upon to start working straight away and not stop for years – in most cases way outlasting their 20-year FIT term or insurance warranty.

7. Impact on Local Communities

Generally the impact on local communities from local renewable projects is largely perceived as positive. Homeowners will benefit from cheaper energy and there is now a planned government incentive scheme to enshrine discounts on energy bills for communities that approve local renewables projects.

You can now invest in panels on the roofs of new-build and sometimes existing homes, contributing to the lower energy bills of others, or even on school roofs. And there are local jobs in it too.

8. Long-term Impact on Energy Bills

One of the problems with energy from fossil fuels is price volatility, but on an upwards curve. This is because fossil fuels are a finite resource, and as any budding economist knows, a dwindling supply of any good or service pushes up its price.

But the wind and sun are infinite – as long as there are enough panels and turbines relative to people on the planet, supply-side pressures on the price of energy from renewable sources are kept in check.

9. Impact on The UK’s Energy Security

We are dependent upon imports from other countries for everything we take for granted in our modern lives. And in these days of dependency on dwindling, increasingly expensive fossil fuels from or through countries, that’s a fairly powerless and perilous position to be in.

One of the greatest reasons to generate our own renewables projects and the structure to support them, favored by academics in particular, is energy security. In other words, if you own it, and it is down the road, then we are more secure than depending on overseas suppliers.

10. Impact on Earth

No noxious by-products mean less pollution and less threat of massively destructive natural disasters.

Considering the issue of climate change, even if you don’t believe that the planet is getting warmer, few deny the harmful effects of carbon dioxide (CO2) on the balance of the planet’s ecosystem. If we can stop pumping out the CO2 at such an alarming rate, the planet will breathe a little easier.

About Us

London based AMDC Energy is one of the most dynamic energy storage company operating within the UK and overseas, with focus on renewable energy industry. We offer a fully integrated solution including consultancy, project management, finance, design, construction, operation and maintenance, asset management and sustainability solutions within the electricity market as well options for businesses and users to benefit from taking part in helping to balance the grid using renewable energy, particularly solar and wind energy, which provide electricity without giving rise to any carbon dioxide emissions.

Contact Us

AMDC Energy Limited
225 Marsh Wall, Canary Wharf
London, England, E14 9FW
Registered Number: 10352741
Telephone: +44(0)20 3019 5041
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AMDC Energy Limited, 225 Marsh Wall, Canary Wharf, London, England, E14 9FW Registered Number: 10352741