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Inaugural Abundance project hits funding target

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A 500 kilowatt wind installation in the Forest of Dean – the first funding project from community finance platform, Abundance Generation – has reached its £300,000 investment target, meaning work on the development is now underway.

The project has received investments of between £5 and £50,000, with investors aged from 22-80, and breaking this initial barrier in less than four weeks sets it in good stead to reach its £1.4m target by autumn this year.

Investors pledge money towards Abundance projects by buying debentures – like an IOU. Under this agreement, the energy projects are committed to paying out a regular cash sum from the profits it makes from generating and selling power.

The £300,000 mark is significant because the project is now fully funded and construction work can proceed at full speed”, said Bruce Davis, co-founder and joint managing director of Abundance.

The first tranche of debenture certificates have been issued. The debenture offer will remain open into the autumn or until £1.4m is reached.

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After that any remaining bridging finance will convert into debentures.

Davis added that Abundance’s model is stirring up real interest from developers across the world – further proof of its ground-breaking platform strategy.

Using the debenture structure to create a public offer is a first for the UK and the world as a whole”, he explained.

It’s interesting how many countries are watching to see if this is a success and whether it is something they could adopt for themselves in the future.”

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Individuals investing in the Forest of Dean development should expect a return of between 6.75-8% over the course of the investment – a figure that Abundance claims will be about average for most of its projects.

The organisation has a number of further developments in the pipeline for its first year of operation, as it aims to reach £250m of investment within five years.

Louise Wilson, co-founder and joint managing director of Abundance, said, “We reached our target for the first phase of investment in the timetable we set out, despite it being a slow time of year to launch such a product.

This shows there is a real demand for these kinds of investments; people want more control over where their money goes and how it’s being used.”

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Abundance confirmed that it would soon be launching its second project, which is set to provide clean energy to 450 residential homes in the UK.

Blue & Green Tomorrow will of course keep you completely up-to-date with all future developments circulating from a firm at the forefront of UK renewable energy innovation.

Further reading:

Community finance platform launches first renewables project

Record-breaking year for renewable energy investment

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Clean energy investment hits trillion dollar mark

The Guide to Limitless Clean Energy

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