Aviva helps refinance £70m renewables portfolio

Ecotricity is using the money to refinance a 60MW operational UK wind and solar portfolio.

Green energy company Ecotricity has clinched a £70 million ($104 million; €96 million) refinancing deal with Aviva Investors, the investment arm of insurer Aviva, PDI sister title low carbon energy investor reported.

The funds will be used to refinance a 60MW portfolio of operational wind and solar parks across the UK, including the company’s first project, from 1996. They will also help Ecotricity boost its green energy portfolio to 100MW over the next 18 months. The company already has planning consent for 20MW of wind and solar, some of which has already started construction.

Ecotricity explained the refinancing with Aviva also represented an evolution of its business model:

“Harnessing our customers’ bills and turning them into windmills got Ecotricity where it is today. The investment from Aviva is an evolution of that model – freeing up value from our own windmills – in effect turning ‘mills into mills’,” said Ecotricity founder Dale Vince.

Aviva Investors’ Elizabeth Lutley said the deal built “on our track record of bringing long-tenor institutional money to the renewables sector”.

Founded in 1995, Ecotricity calls itself the world’s first green energy company, with over 150,000 customers today. The firm is a not-for-dividend outfit, reinvesting all of its profits into new projects.