Lloyds Banking Group in the UK is poised to invest Â£333 million ($519.5 million) in a variety of renewable energy projects over the next 18 months, including offshore wind, solar, and biomass. The funding has been allocated from a totalÂ Â£1 billion ($1.57 billion) Lloyds is investing in the UK governmentâ€™s new infrastructure plan â€“ a plan calling for investments in power, highways and port development.
Altogether, the banking group is considering nine social and economic infrastructure projects, three conventional power plants, and twelve green energy projects.
In an interview with Bloomberg, Chris Heathcote, Lloyds managing director and global head of project finance stated: â€œthe areas that seem to be doing the most at the moment are offshore wind, including the off-take connections, and biomass is looking interesting, but I’m slightly cautious as it’s still early days for biomass.â€
Lloydâ€™s announcement comes in the wake of the Cameron Governmentâ€™s UK Guarantees program, a program that will provide loan-guarantees for critical infrastructure programs. The banking groupâ€™s Â£1 billion will help bolster the UKâ€™s waning economy and establish an environment for businesses to run more efficiently.
In order for projects to gain approval by the UKâ€™s new program, they will have to feature a start-time within a year. Those proposing projects will also have to prove they could not gain financing outside of the UK Guarantees program.
Lloydâ€™s Banking group is only one in a string of other banks that have decided to invest more heavily in renewables. SeveralÂ US banks, including JP Morgan and Bank of America have decidedÂ to increase investments in clean technologies since the start of the year, while the Co-operative Bank recently confirmed Â£700m in renewable energy projects in the UK.
It seems the renewable energy sector has received considerable investments recently as financial institutions attempt to take advantage of its rapid growth.
Image: Lloyds Banking Group