Despite an increasing number of advisors backing renewable energy, many of them are still hampered by a knowledge gap, according to a survey commissioned by Albion Community Power, a power generation company launched by venture capitalist firm Albion Ventures.

Despite an increasing number of advisors backing renewable energy, many of them are still hampered by a knowledge gap, according to a survey commissioned by Albion Community Power, a power generation company launched by UK-venture capital firm Albion Ventures.

Research conducted among 148 UK IFAs and wealth managers in December last year found that while 71 per cent of advisors were backing renewable energy investment, 58 per cent of IFAs rated their knowledge of the range of renewable energy investment schemes currently available as below average or weak.

While the majority of advisors are familiar with solar and wind energy, the research showed that three quarters (75 per cent) were unfamiliar with biomass, 74 per cent with biogas and 64 per cent with hydro-electricity.

Albion said that investors in ACP will gain exposure to income-producing inflation-linked returns targeted at approximately 6 per cent per annum.

“Our research shows that advisors are under no illusion of the growing importance of renewable energy as an investment opportunity given the inflation protection benefit it provides. However, there is a clear knowledge gap regarding the range of renewable energy investment schemes available to investors. More needs to be done by the industry as a whole in generating awareness of this sector," said David Gudgin, head of renewables at Albion Ventures.

ACP also said that it is looking to raise up to £100 million funds from retail investors and family offices by investing in a range of renewable energy projects using proven technologies including brownfield wind, solar, hydro-electricity, biogas and biomass.