Press Release: Fourth fundraise secured by solar developer Elgin Energy
January 31, 2020
Fourth fundraise secured by solar developer Elgin Energy
Two fundraises completed with Cantor Fitzgerald Ireland
Leading independent international solar developer Elgin Energy has secured a fourth fundraise for £4.7 million. The fundraise was closed in January 2020. Funding was obtained from Irish investors and will provide capital to complete late stage development of 250 megawatts (MW) of UK solar projects.
This was the second successful fundraise completed in partnership with Cantor Fitzgerald Ireland. The first fundraise was closed in June 2019 and raised £4.3 million. Both fundraises will be used to finance late stage development of Elgin Energy’s UK pipeline. A further fundraise is proposed later this year.
Jack O’Keeffe, Senior Director, and Alan Wall, Associate Director, in Cantor Fitzgerald Ireland Corporate Finance worked closely with Dermot Kelleher, Finance Director and Ronan Kilduff, Managing Director in Elgin Energy to secure and close the fundraise.
The UK solar market has matured since the support scheme ended and capital costs continue to reduce. Total installed costs of utility-scale solar PV in the UK have declined by almost 80% from 2010 – 2018 and this downward trend is projected to continue.
“This is the second fundraise we have managed with Elgin Energy. The first fundraise was oversubscribed and due to demand from investors we pursued a second fundraise. Over the past year we have seen a major increase in demand for investment in green funds and demonstration of Environmental, Social and Governance (ESG) commitments.” commented Jack O’ Keeffe Senior Director, Cantor Fitzgerald Ireland Corporate Finance.
Elgin Energy has delivered 21 projects (230MW) across the UK & Northern Ireland to date. These projects were delivered under the government operated Renewables Obligation (RO) scheme. When that scheme ended in 2016, many developers left the UK market. Elgin Energy remained and continued to develop projects and have now amassed one of the largest qualified late stage pipelines in the UK.
“Over the past twelve months, we have seen further advances in the UK solar industry and a marked increase in appetite from investment funds to acquire solar assets. With one of the largest late stage pipelines in the UK, we are well placed to address this growing demand. Solar PV is the key scalable technology that can facilitate rapid decarbonization of homes, businesses and industry through the 2020s. The future is bright, the future is solar.” commented Ronan Kilduff, Managing Director, Elgin Energy
Elgin Energy forecasts that solar electricity will become cost-competitive in the UK wholesale electricity market from late 2020 onwards and expect installation of their projects to begin in line with this.
About Elgin Energy
Elgin Energy is a leading international independent solar developer delivering solar projects from origination through the development process. The business’ core focus is developing utility scale projects of 20-100MW. With a 98% success rate in securing planning permission, they have secured planning permission for 55 projects (650MW) and delivered 21 projects (230MW) to date. They have operations in the UK, Ireland and Australia. 2.5GW of projects are at late stages of development across all markets.
About Cantor Fitzgerald Ireland Corporate Finance
Cantor Fitzgerald Ireland Corporate Finance is a market leader in providing advisory and capital raising services. The team has particular expertise in advising high growth companies and SME’s across a range of sectors including technology, life sciences, renewable energy, food & beverage, social housing and property. With a strong track record in providing funding solutions for companies at various stages of development via a combination of debt, mezzanine debt and equity, the team has worked with a number of Irish businesses over the last 10 years, and since 2016 has raised in excess of €400m.
The team forms part of the global Cantor Fitzgerald Group with significant presence in Europe and the US. Cantor is a preeminent investment bank serving more than 7,000 institutional clients around the world, recognised for its strengths in fixed income and equity capital markets. Cantor and its affiliates employ over 10,000 people in 25 countries including major financial hubs worldwide.
Advisors to the transaction: Advisors to Cantor Fitzgerald Ireland: Eoghan Doyle and Hugo Grattirola of Philip Lee Solicitors, Dublin. Advisors to Elgin Energy: Gordon McElroy of MKB Law, Belfast.