Rare Opportunity to Acquire Generating Hydro-Electric Scheme With FiT Subsidy

A rare opportunity has arisen to acquire an established 1,022kW run-of-river hydro-electric scheme in the Scottish Highlands with Feed-in Tariff eligibility running until December 2033.

Commissioned in December 2013 and located on the Glendoe Estate, near Fort Augustus on the south-east shore of Loch Ness, the scheme has a proven generation track record. The principal G1 turbine has recently been refurbished by Gilkes.

Investment highlights :

• 2.52GWh average annual generation;
• £700,000 anticipated operating profit 2027;
• 1.022kW installed capacity - two Gilkes turbines (G1 and G2);
• Opportunity for additional revenues from private-wire arrangements;
• Eligible for Feed-in Tariff until December 2033.

The Allt Doe scheme is currently managed by the leading consultant Green Highland Renewables, with monthly inspections and remote diagnostic monitoring. A sale is proposed subject to a 30-year leasehold at a peppercorn rent.

It is expected the opportunity will appeal to existing hydro investors seeking to add successful assets to existing portfolios, a family office seeking an income-generating asset with strong ESG credentials, or a substantial electricity user looking to secure proprietary renewable generation.

‘Run-of-river’ schemes generate electricity using the natural downward flow of a river without building a large dam or reservoir. A portion of the water is diverted through a pipe (penstock) to a turbine, then returned to the river.

In this case a proportion of the electricity is used locally and there is an opportunity for the purchaser to benefit from continued private wire arrangements, selling a portion of the electricity produced locally at above wholesale rates.

An online Data Room is available containing detailed information regarding historic accounts, service agreements, Feed-in Tariff, generation data and other pertinent data.

Contact Information

Peter Curtain

Director

Allerton Communications

(44) 20 3633 1730

peter.curtain@allertoncomms.co.uk