Infinis Energy, a renewable-power company backed by Guy Hands’s venture capital fund, said it is holding off on a decision on whether to build two wind farms until Scotland decides whether it will remain part of the UK.
The wind farms together would have a capacity of almost 100MW, accounting for more than half the company’s 130MW to 150MW 2017 target. It will not begin construction until the results of a referendum set for September 18 are announced, Northampton-based Infinis said in a statement.
The remark in an earnings statement from Infinis is a rare admission by a public company that the political decision about Scotland’s future is having an impact on business.
Polls suggest there is enough undecided voters to swing the referendum in favor of breaking up Scotland’s 300-year old union with England, Wales and Northern Ireland.
Infinis exported power equivalent to 5.7% of the UK’s total generation from renewables in the year through March 31. Its operating wind portfolio has capacity of 274MW, and it also produces electricity from landfill gas.
While its landfill gas facilities contributed 71% of its total exported power, electricity from onshore wind grew almost 50%, representing 28%.
Onshore wind is one of the cheapest forms of clean energy, with prices are comparable with coal-fired power. Wind costs about $84.8 a MWh versus $82 for the fossil fuel, according to data compiled by Bloomberg.
The UK intends to expand renewable energy to meet 15% of demand in 2020 from about 9.4% now.
Infinis raised £234million ($394million) in its November initial public offering with Hands’s Terra Firma Capital Partners retaining a majority.
Recommended for you
