The Green Investment Bank (GIB) has unveiled plans to raise a £1 billion fund to encourage new investment in offshore wind farms in the UK.
Created by the government in 2012 to back green projects, GIB has announced its results for 2013-2014, revealing it committed £668 million to 18 new projects – more than double the number it backed in its first year.
An additional £1.9 billion of private money has been committed to the projects alongside GIB’s own investment, taking the total to £2.5 billion.
At the same time, GIB announced it is seeking long-term co-investors for a £1 billion fund that will acquire equity stakes in offshore wind projects already operating in the UK.
GIB chief executive Shaun Kingsbury said: “Our role goes well beyond that of a traditional investor. We are providing a positive demonstration effect by successfully committing capital to profitable, green infrastructure investments. We are making a difference across the UK by taking on the tough projects, de-risking new technologies and lowering the cost of capital for our sectors.
“We want to do more to maximise our green impact. We plan to extend our reach into new markets like community-scale renewables. And we plan to raise new capital for the first time through the creation of a new £1 billion fund for operating offshore wind assets.”
Since its inception, GIB has committed £1.3 billion to green projects, with up £3.5 billion also coming from private investors, taking the total to around £1.3 billion.