New hydropower EIS launched by Deepbridge

Deepbridge has today announced the launch of its new Deepbridge Hydro EIS opportunity – a new Enterprise Investment Scheme investing solely in UK hydropower.

The Deepbridge team previously advised on a wind turbine focused renewable energy EIS; prior to the Government restricting those Companies benefiting from Government support under Renewable Obligations Certificates (ROCs) and Renewable Heat Incentives (RHI) to also be eligible for the tax-reliefs available under the Enterprise Investment Scheme.

Hydropower continues to benefit from Government support, via ROCs and Feed in Tariffs (FITs).  The Deepbridge EIS targets predictable long-term revenue, with many hydro installations estimated to have a useful life of over 100 years*.

In 2012 hydropower accounted for just 1.8% of UK electricity production, compared to globally where hydropower provides 17% of electricity generated.

Ian Warwick, Managing Director at Deepbridge, commented;

“The most important aspect to an EIS investment is the underlying business model. With respect to EIS investment, there are inherent risks involved when investing in unlisted and earlier stage companies. However, a renewable energy business model is arguably less risky, given the asset-backed nature of the company coupled with Government revenue subsidies. It could be argued that it is comparable in risk and return to owning your own commercial property in a pension with a blue-chip tenant and a 25-year lease.  We are excited by the UK hydro sector which continues to grow whilst still having further growth potential.  For investors looking for predictable performance, hydro power is currently considered to be an attractive form of renewable energy to invest in.  We are delighted to be members of the British Hydropower Association and to be working with the BHA to attract funding to this sector.”

Simon Hamlyn, Chief Executive Officer of the British Hydropower Association, commented;

“We are delighted to hear of Deepbridge’s commitment to source funding for hydro projects in the UK.  We are now seeing hundreds of exciting hydro project in the UK each year and, naturally, sourcing funding is often a concern for many projects.  To have the full support of an innovative organisation such a Deepbridge is good news for our sector.”


*Source: British Hydropower Association website