Co-op team has £200m for Scottish renewables

Published on Tuesday 18 May 2010 20:05

THE Co-operative Bank is setting up a dedicated Scotland team as it prepares to lend up to £200 million this year to back renewables projects north of the Border.

The company said the decision to establish a separate team reflected the strong demand it was seeing for funding for smaller-scale renewables projects.

A team of five will be split between the bank's Edinburgh and Glasgow corporate business centres and headed by Chris Rodgers, senior manager for its renewable energy team.

The bank specialises in financing projects ranging from 1m to 25m. Typical examples include wind and hydro-power schemes developed by small landowners, farmers and community groups to develop new income streams.

Rodgers, who is already based in Scotland, said the UK government's recent launch of a "feed-in" tariff, which guarantees a minimum payment for smaller renewables and low-carbon projects, was contributing to a very strong level of inquiries for the bank.

"There has been considerable interest recently, particularly from community groups and smaller developers keen to utilise the new feed-in tariff."

The Co-operative Bank has been one of the most active lenders to the renewables sector in recent years. In 2007, it ring-fenced 400m specifically to fund renewable energy and carbon-reduction projects.