UK-based Simply Sharia, a company of independent financial advisors, said it has become the first to launch a Sharia-compliant green energy project.

Simply Sharia will take a leading role in the scheme - the first of its kind in the Islamic financial world -  along with partners Gardner Asset Management (GAM) and Shariyah Review Bureau.

The scheme is set to deliver significant benefits to investors by selling government-backed green energy certificates and electricity to the grid.

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 more than 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.

The project will be run by GAM, 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, the 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," remarked Karbani.

Shariyah Review Bureau CEO Yasser S. Dahlawi said: "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," he noted.

"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," he added.-TradeArabia News Service