Building Green Energy with Shari’a Compliance

Simply Sharia Ltd today launched a green energy scheme set to deliver significant benefits to investors by selling government-backed green energy certificates and electricity to the grid.

UK based Simply Sharia, a firm of Independent Financial Advisors dedicated to the provision of Sharia compliant financial solutions,  will take a leading role in the scheme – the first of its kind in the Islamic financial world –  along with partners Gardner Asset Management LLP (GAMllp) and Shariyah Review Bureau (SRB).

The Sharia compliant Green Energy Enterprise Investment Scheme (EIS) will provide investors with an opportunity to participate as shareholders of a company in a government-backed renewable energy project delivering revenue from Renewable Obligation Certificates and the sale of electricity to the grid. The investment strategy of the company will focus on capital preservation, while offering potentially significant equity returns to shareholders.

The project will own a field-based solar photovoltaic generation plant located in the UK that produces electricity. Each 1 Megawatt peak (MWp) of electricity generated by a solar plant powers 300+ average homes*, prevents 430 tonnes of CO2 emissions annually**  and it takes just 2.5 years of clean energy generation to pay back the CO2 used in constructing the solar***. This figure is reducing as the manufacturing process improves.

The project will be run by GAMllp, who have  extensive knowledge and experience in renewable energy, and who will work with a number of specialist companies to structure, establish and manage the project. The project’s technical consultant, Steven Coates, has 39 years’ experience in the building industry, including the last 10 years spent as a specialist Project Engineer and Project Manager in the renewable sector.

Faizal Karbani, CEO of Simply Sharia said, “This will be the first certified Sharia Compliant Green Energy EIS offered to UK investors. We believe the structure of the investment fits very well with the values and principles of Sharia. We are using a structure common to Islamic finance known as an Investment Wakala, whereby an Agent (Wakil) is appointed by investors to manage and run the investment on their behalf. For this project, GAMllp has been appointed as the Wakil, and will run the business for investors in return for a fee, comprising an annual management charge and a share of the profits. It is also the intention to operate without conventional interest bearing debt in the structure”.

To ensure the project is Sharia compliant, the scheme has engaged a leading Sharia Advisory firm, Shariyah Review Bureau (SRB). They will issue a certificate of compliance at the outset to confirm Sharia compliance, and will also carry out an annual audit of the company’s activities, review documentation and provide structuring to ensure it remains Sharia compliant. In addition, Simply Sharia will provide a Director to sit on the board of the company to ensure regular review of the company’s activities.

Yasser S. Dahlawi, CEO of SRB commented, “We are very excited about this project which will allow both Islamic investors and consumers to play a role in a greener environment. We are continuously on the lookout for innovative ways to contribute to projects which help protect our environment and conserve scarce resources while offering clients cutting-edge Islamic investment opportunities. This Islamic green energy project is an ideal addition to our Sharia Advisory business, and the scheme’s environmentally responsible theme ensures that we’re catering to the highest level of innovation available in the Sharia compliant market.”

Notes to the Editor

Simply Sharia Limited

Simply Sharia is a FCA regulated firm of Independent Financial Advisors solely dedicated to the provision of Sharia compliant financial solutions and advice. It is committed to pioneering authentic, new and innovative Sharia compliant financial solutions which enhance the quality and range of Sharia compliant investments and other financial products available in the market. Along with advising individual clients on areas of personal financial planning such as investments & savings, pensions, Islamic Wills and Inheritance tax planning; Simply Sharia also assists companies to set up Sharia-compliant pension schemes for their employees and raise Sharia-compliant finance for their business.

GAM llp

GAMllp was founded in January 2010 as a Family Office by Douglas Gardner and later joined by his business partner, Christopher Isard, to focus on renewable energy investments that generate income streams and that are not reliant on the performance of financial markets. The aim was to seek diversification in alternative asset classes that provide inflation-linked income and potential capital growth, as well as being socially and environmentally responsible.  GAMllp will fulfil the project utilising their specialist team of technical, legal and financial advisers to achieve a high level of risk protection through rigorous process management and independent analyses of the project.