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Thrive Renewables (Buchan) Ltd

What they do

Thrive Renewables’ purpose is to provide individuals with a rewarding connection to sustainable energy. Their community of investors is united with a common mission – to play a meaningful role in addressing climate change.

Who are Thrive Renewables (Buchan)

Thrive Renewables' (Buchan) two turbines Auchtygills and Clayfords began operating in 2015 and in 2017 generated 4,428 MWh, enough to power over 1,000 UK homes.1 Both projects are eligible for Feed-in Tariff (FIT) payments and have received pre-accreditation under the FIT scheme from Ofgem, the UK energy regulator.

Thrive Renewables (Buchan) Limited is a wholly owned subsidiary of Thrive Renewables plc and forms part of a larger renewable energy group – the Thrive Renewables plc group of companies - which was established in 1994.

1 Based on BEIS data showing that annual UK domestic household electricity consumption is 3,994kWh.

Buchan's 2017 Operations

Both Auchtygills and Clayfords achieved full accreditation during 2016 for the government’s guaranteed 20-year Feed In Tariff (FIT) pricing support and are unaffected by changes announced subsequently to renewable energy support mechanisms. These changes will have an impact on future/new projects which are yet to qualify for support.

The two wind turbines generated 4,427,593 kWh of electricity in 2017, a 6.7% increase on 2016 output. Average operational availability across the two sites was 99%, which is in line with operational targets. Whilst wind levels were marginally higher in 2017 than 2016, average wind speeds remained below the long term projections.

Both projects continue to benefit from 20 years of Government backed Feed in Tariff income which currently represents 64% of their revenues. The Directors of Thrive Renewables (Buchan) Limited remain confident that despite the change in support for ‘new’ projects, the Government will honour the financial support for which the projects are qualified.

Each project benefits from two sources of revenue, the Feed in Tariff and the wholesale electricity price. The Feed in Tariff component is adjusted in line with inflation annually. The Feed in Tariff on both projects was £84.80/MWh for the year April 2017 to March 2018, and £88.30/MWh for the year starting April 2018. Throughout 2017 the projects benefited from the improved fixed export electricity price which was secured in 2016. The business will continue to monitor opportunities to secure higher export prices throughout 2018.

The civil engineering and electrical agreements upon which the site was constructed provide a warranty period. The civil and electrical infrastructure inspections conducted in 2017 confirmed that the condition of the sites is satisfactory.

The investment

Thrive Renewables (Buchan) raised £3 million of capital through its 2016 secured Bond Issue. The company owns and operates two onshore wind farms in Aberdeenshire, both of which are single turbine windfarms with a combined capacity of 1.6 MW.

The total cost of developing and constructing Auchtygills and Clayfords was £4 million and this has been financed predominantly through an intercompany loan from the parent company Thrive Renewables plc.

The funds raised through their 2016 Bond Issue was used to repay the intercompany loan to Thrive Renewables plc, thereby enabling the Group to invest in more renewable energy projects. The Group has a strong pipeline of projects in the UK, including a new 6 MW onshore wind farm in central Scotland.

In the event that Thrive Renewables (Buchan) Limited is unable to pay bond interest or repay the capital, bondholders will have no recourse to Thrive Renewables plc. 

Who are Thrive Renewables plc

Thrive Renewables plc is a renewable energy group which develops, constructs and operates a portfolio of renewable energy projects. Thrive Renewables plc is the parent company of Thrive Renewables (Buchan) Limited. 

Thrive Renewables plc's mission is to provide an opportunity for individuals to have a rewarding connection with sustainable energy. The Group is owned by a community of around 5,500 shareholders and this structure provides a means by which individuals can invest directly in renewable energy generating assets. During the Group’s 2014 share issue individuals were able to invest from as little as £50 enabling it to become one of the most widely owned renewable energy companies in the UK.

You can find ouy more about Thrive Renewables in our comprehesive Thrive Renewables Business profile

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