Renewable energy and agriculture are a good natural fit, with a mixed use of land for both agricultural production and energy generation providing investors with the potential for enhanced returns and risk management through income diversification and energy costs savings.
As one of the world’s most developed regions, the EU takes a lead role in addressing climate change. The EU’s Renewable Energy Directive requires at least 20% of its gross final energy consumption to come from renewable energy sources by 2020, and each member state has a National Renewable Energy Action Plan (NREAP) with a legally binding target identifying how much of their energy is to be derived from renewable sources by this date.
With these targets in place, national governments are keen to support renewable energy enterprises and, in some instances, will provide grant funding and tax breaks to assist with the set-up of such projects. Each member state also has a Green Certificate and/or Feed-in Tariff system providing a payment to the energy producer for generating energy and heat from a renewable source. These payments vary depending on the type of renewable energy generated, and are additional to the sale of the electricity to the national network, which is at the prevailing market rate.
As well as the sustainable and socially responsible credentials of a renewable energy project, the income generation combined with the various grants and green certificate support payments, provide investors with the opportunity to diversify their agricultural investment in order to generate alternative income streams and enhance the capital return at exit. Renewable energy can also provide a good way of achieving additional value from a farming enterprise, such as installing an anaerobic digester fed by waste and straw from a dairy and cereal unit.
Our experience in the renewable energy sector encompasses all of the main land-based renewable energy generation options including wind power, photovoltaic (PV/solar), anaerobic digestion (biogas), and biomass production, as well as best use of combined heat and power (CHP). These various options have different investment requirements, and can range from very large projects requiring substantial investments in excess of €10 million, down to smaller scale on-farm projects, requiring investments of approximately €1 million.
Mintridge International can:
- advise on the set-up and operation of suitable on-farm renewable schemes to enable optimal returns to fit with the investor’s aims and objectives;
- source and acquire stand-alone renewable energy projects throughout the EU, working with trusted partners to develop and implement schemes on behalf of investors;
- match investors to projects requiring funding.
Our research paper ‘Renewable Energy in Poland and Romania‘, focuses specifically on the renewable energy sectors in Poland and Romania, but we also undertake research and source projects across the rest of the EU.