CarES Conference 5 th March 2014 Sharing the 500MW Target Local - PowerPoint PPT Presentation

Project structure 2013 SEP Dingwall Wind Co-op Knockbain Farm Co-op setup Planning Technical Grid Development connection deposit

Share offer 2013 OCT NOV Dingwall Wind Co-op Knockbain Farm Planning Technical Grid Development connection deposit

Co-op buys the project 2013 DEC Dingwall Wind Co-op Knockbain Farm

Co-op builds the turbine 2014 APR Dingwall Wind Co-op

Grid connection 2014 MAY Dingwall Wind Co-op Grid

Income sources 2014 +20 Dingwall Wind Co-op Grid

Costs 2014 +20 Dingwall Wind Co-op Grid

Community Fund Surplus distributed 2014 +20 Grid

What is a Co-operative Society ? • Origins: Fenwick Weavers Society 1769, Rochdale Pioneers 1844  Self help and self-responsibility • Run for the benefit of its members  Opportunities for education • Fair and democratic – one member  Member economic participation one vote  Honesty and openness • Adheres to Co-operative principles  Democracy and equality  Concern for community  Autonomy and independence • Industrial and Provident Society  Co-operation among co-operatives • Registered with Financial Conduct  Social responsibility Authority

Joining the co-op • Anyone above 16 – including organisations • Can buy shares for children • Minimum £250 • Maximum £20,000 • Projected return – 7.5% before tax relief • A long-term investment – 20 yrs • Shares cannot be sold • Can apply to withdraw from year 3 • Plan to repay capital from year 5 • An at-risk investment – no compensation schemes

Simplified profit and loss Yr1, base case (low wind) £ Income Feed-in Tariff + electricity sales 101,000 Running costs Maintenance, insurance, base rent, admin - 34,000 Net income 67,000 Depreciation fund to repay members capital - 43,000 Remaining funds for distribution 24,000 Community fund 2,000 Additional rent 0 Return to Co-op Members 22,000

Simplified profit and loss 3-way split Yr1, expected case (normal wind) £ added total Income Feed-in Tariff + electricity sales 101,000 119,000 18,000 Running costs Maintenance, insurance, base rent, admin - 34,000 -34,000 Net income 67,000 85,000 Depreciation fund to repay members capital - 43,000 - 43,000 Remaining funds for distribution 24,000 42,000 Community fund 2,000 8,000 6,000 Additional rent 0 6,000 6,000 Return to Co-op Members 22,000 28,000 6,000

Members cashflow investing £1000 Members Projected return (IRR) No EIS EIS Base Case 6.5% 9.8% Expected Case 7.5% 10.9%

Lessons Learned • Lots of demand / interest • A good, credible, quality share offer is essential • Perception (Reality?) that all £ benefits goes to landowners / remote developers • Good lower risk / lower return option, especially when bank loan is problematic • Co-ops are a good addition to the suite of community energy options

Other Wind Co-ops in Scotland? • Kemps Hill, Aberdeenshire • Wester Derry, Angus • Islay • Plus hydro (Harlaw, Garmony)

Next steps April 2014 Groundworks start on site when weather permits. May 2014 Completion and commissioning of turbine. July 2014 Official opening, First Co-op AGM, Open Day First payments to Co-operative Members and Community Fund. Spring 2015 Second Co-op AGM. @DingwallWind

Local Energy Scotland CARES Conference Sharing the 500MW Target Andrew Stewart Marshill Farm South Lanarkshire

Local Energy Scotland CARES Conference Sharing the 500MW Target Kelly McIntyre Fintry Development Trust

The Fintry Story Kelly McIntyre, Project Manager, Fintry Development Trust March 2014 www.fintrydt.org.uk

History • FDT has right to income from one 2.5MW turbine of fifteen at Earlsburn Windfarm • ‘Production Sharing Agreement’ • Income used by FDT for other energy reduction and sustainability projects www.fintrydt.org.uk