News

January 27, 2009

Renewable Energy Holdings Looks Well Positioned To Weather The Storm

By Rue Swabey

Aim-traded Renewable Energy Holdings has held up fairly well in the current weak economic environment. Renewable Energy’s business model is one of the most appealing of its peer group: it has cash generative assets in wind power generation, as well as development assets in the both wind and wave power spheres. The company’s management has chosen to commercialise its emerging wave technology through partnerships, and that should allow it to build value in both sides of the business in a way that manages the attendant risks fairly well.

During what was otherwise a quiet few months for the clean tech sector, Renewable Energy has issued a succession of positive announcements. Last November it announced the acquisition of a 70MW wind site in Wales, and in December it signed a conditional sale and purchase agreement to develop a Polish wind site with potential capacity of 30MW. These sites are likely to come on stream in 2011 and 2010 respectively. Poland is an attractive market given its high winds and favourable feed-in tariffs....