Feasibility study of establishing an investment vehicle that will channel financial resources of individuals and groups in the Nottinghamshire area into "green" investment activities.

Mabasa, Thembani TM (2012) Feasibility study of establishing an investment vehicle that will channel financial resources of individuals and groups in the Nottinghamshire area into "green" investment activities. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

Negative environmental externalities associated with fossil fuels are forcing government policy makers to transit to low carbon emitting energy sources and efficient use of energy. The transition to cleaner and efficient use of energy has created opportunities for private finance to participate in greening the economy. Such private finance includes buying green bonds that are ring-fenced within sustainable green initiatives and projects. Other novel schemes that participate in greening the economy include community ownership of green projects where a group of community members’ pool funds together and co-operatively share the profits and rewards of such investments.

To better estimate the value of investing in a PV power system, the project sponsor must obtain reliable solar resources covering a substantial period of time to understand variability of solar irradiation with change in climatic condition. The organisation form of the chosen investment vehicle will be a function of the client expectations and the liquidity of the investments. If the fund is investing in illiquid, the appropriate organisational form is authorised unit trust where investors can trade in and out of the fund without affecting the fund value and the operations of the assets under management.

The directive of FSA regarding the establishment of investments funds clearly states that any authorised fund has to produce a prospectus that detail out the risk associated with investments and a forward looking business plan; for projects like PV investment such a task requires that the project sponsors must spend seed capital in order to have reliable solar irradiation profile and energy yield covering the duration of the investment. Solar irradiation profile is by far the greatest risk of investing in a PV power system, together with the performance of the chosen technology (PV panels and Inverters)

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 07 Jan 2013 16:38
Last Modified: 04 Dec 2016 14:46
URI: http://eprints.nottingham.ac.uk/id/eprint/25713

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