The universe of renewable energy YieldCos

Wind turbine in Glyndebourne by Mark Bridge, CC license: https://creativecommons.org/licenses/by-nc-nd/2.0/
Wind turbine in Glyndebourne by Mark Bridge, CC license: https://creativecommons.org/licenses/by-nc-nd/2.0/

I have long-believed in the necessity and potential for renewable energy, putting my money where my mouth was in 2012 via the Abundance Investment crowdfunding platform. My first investments were Padero South Downs and Resilient Energy Great Dunkilns. Padero South Downs aimed to provide free solar panels for residents in the UK’s South Downs region, however the project stumbled with the contractor being put into liquidation. Abundance decided this would create further delays and increase the risk to expected returns, so the debentures were paid back at par value. Resilient Energy Great Dunkilns (REGD) was more successful and its wind turbine continues to produce clean energy to this day, according to the project’s website. Abundance’s stake was eventually sold on to a local community benefit society and debenture holders received their capital back plus an 18 per cent premium calculated on the basis of outstanding capital. Over a six and a half year period REGD generated returns of 26 per cent or 4.01 per cent per year, although Abundance states an Internal Rate of Return (IRR) of 6.75 to 8 per cent variable. The difference here is probably due to my slightly more conservative calculation denoting a time period where my capital was in and then out, rather than when the investment officially closed and concluded. Nevertheless, for a single crowdfunded wind turbine, I thought this wasn’t a bad result.

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Codemasters in pole position on the grid

Screenshot of Mercedes car from F1 game by Codemasters
Screenshot of Mercedes car from F1 game by Codemasters

British video games company Codemasters announced on Thursday that it had extended the terms of its licensing agreement for the Formula One franchise until 2025. The F1 game is one of the company’s cornerstone products and signing an extension to the contract removes a fundamental risk for the business. It is one of the company’s most important products given the prestige the sports franchise provides and the opportunity for yearly game reboots with the start of each new season. More recently, Codemasters have launched an accompanying mobile game and eSports league, furthering the reach of the game.

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