(Bloomberg News) Abundance NRG Ltd., a London investment company, is courting retail investors with an offer to buy into wind, solar and other renewable energy projects for as little as five pounds ($7.84).
Abundance sells bonds issued by developers of wind farms and solar parks to those wishing to invest directly, co-founder Bruce Davies said in an interview. The bonds will deliver cash returns of 6.75 to 8 percent a year to investors who spend as much as 50,000 pounds ($78,425) per venture, Davies said.
"There's a massive gap in the funding of renewable energy," Davies said from London of plans to court an alternative brand of investor. "Small-scale projects find it hard to raise bank finance because from a bank's point of view, for a small project it's hard to charge a larger fee."
Abundance said it plans to get 1.4 million pounds ($2.2 million) this year for its first 500-kilowatt wind project in the Forest of Dean. It also is aiming to attract 250 million pounds ($392 million) of investments in five years, provided it grows in that period.