A hydro power station on the River Lochy in Argyll has secured £1.25 million crowd funding from investors after enjoying a successful start with its generating operations.
The power station at Inverloch generated more electricity than forecast in the first three months after it was brought into production in July.
The Lochy Hydro station was developed by privately-owned Nightjar Sustainable Power, which said it could become a productive source of energy for years to come.
“Scotland’s abundant renewable energy resources continue to bring huge opportunities, realised in our latest project on the River Lochy,” said Carl Crompton, a director of Cumbria based Nightjar.
Noting the challenges businesses face in raising traditional forms of finance, Mr Crompton welcomed the support provided by investors through crowdfunding.
The £1.25m support for the station’s ongoing operations will be provided by the Downing Crowd platform, which invests in renewable energy businesses.
Downing Crowd has raised the money by selling bonds to investors that will be secured against the power station’s assets. It said the Hydro Bonds would allow backers to earn a return of up to 5.5 per cent on their investment over 12 months.
The platform was launched by the London-based Downing investment management business in March. Downing said the Hydro Bonds sold out within two weeks. The minimum investment was £100.
Funds managed by Downing supported the development of the Lochy Hydro station, which cost £8.3m
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