TAKING LOCAL ENERGY NATIONAL
Wig ight Community Energy AG AGM 20 th June 2018 12:00pm at Shalfleet Village Hall
Ag Agenda 1. Welcome and Introductions 2. Brief overview 3. Update on Financial Position 4. Site Performance 5. The Future of Wight Community Energy 6. Resolutions Approval of draft minutes of 2017 AGM Wight Community Energy audited accounts for the year ending 31/12/17 Delegate to directors authority to appoint auditors and to fix remuneration Election of directors to the board 7. Any Other Business
1. In Introductions
2. Brief Overv rview
Wi Wight Community Energy Ltd Community Benefit Society or ‘ BenCom ’ Asset is a 3.9MW ground mounted PV array Purposes Generate and promote clean energy Provide a fair return to members Provide funds for local community
Community obje jectives Support community ownership of energy generation Work to reduce fuel poverty Move IoW towards energy self sufficiency Encourage wider EV ownership Support development of smart grid solutions
Fi Financial structure • Project capital of £5.5M was raised from: £3.08M bank loan £1.7M IoW Council £700,500 shareholders • Highly geared 13% equity 85% costs = Opex + debt service
Mo Mongo goose Energy • Manages 83MW of community energy assets • Manages Homestead (with Anesco) • WCE is a co-owner of Mongoose Energy (via MCEM) • Currently working on refinancing • Future opportunities will include storage, local trading, new PV
Di Directors Colin Palmer – Chair - 30 years in renewables David Bunker - FCA Michael Lilley – Ryde Councillor Laurie Tennant – Solar expert Ray Harrington-Vail – Footprint Trust Company Secretary - Mongoose Energy
Proje ject performance Th The SSE SSE prob oblems
Ou Outages 2016 11.2% lost production 2017 13.4% lost production, £67,210 of income 2018 Nothing so far …
2017 2017 Outag ages SSE letter - 43% loss predicted Lobbied and negotiated with SSE Multi -level relationship (30+) Moved from ANM to inter-trip Solar consortium deal with RWE (cost to participate) Actual loss - 13.4% Full story at: http://iowcommunityenergy.org/investors-and-charities-set-to-miss-out-due-to-isle-of- wight-solar-switch-off/
3. 3. Finan anci cial Pos osition
Fi Financial Position: Challenges Reduced income - outages (and weather) High cost of capital (early stage finance) Funding of SGS study (£16k) High gearing Short term financial pressure
Ge Gearing g effect ct £23k £55k £82k
Po Positive Financial Po Position Homestead project is very efficient Few outages expected in the future • SGS study results • New “Automatic Network Management” system Increased income in 2018 • higher power prices (new PPA) • higher RPI inflation (4.1% vs. 2.5%) Reduced costs • Refinance from Close Brothers, Triodos or CORE
Refi finance options 3 offers to refinance the loan balance of £2.862m • Triodos = £3.075m • Close = £3.062m • CORE Close - short-term advantages: • Lower transaction costs • Quick and more certain Triodos - long-term advantages: • lower interest rate • 16 year fixed interest loans (Close = 10 years) • Complex and expensive DD CORE
Is Isle of Wight Council loan WCE request to Isle of Wight Council • Reduce interest rate from 6% to 5% for 3 years • Convert to an annual payment in November • Delay repayment of capital (5 years) Council draft response • Rate reduction refused • Annual payments agreed • Capital repayment delay accepted • No members’ interest until loan is repaid Next step: formal 5 year agreement
4. 4. Perf rform rmance ce Update
Pe Performance 2017 3.78GWh - power for 1,200 homes 86% target: (mainly outages)
January ry to May 2018 102.8% target 1.8GWh power for 600 homes
5 The fu future
Th The Future of of WCE – what we said id Resolve the grid situation - done Rebuild cash reserves – in progress Reduce/defer operating costs - small reductions Reduce the project’s cost of capital • Refinance debt from Close Brothers and Isle of Wight – in progress • Swap member share-holdings for ISA-eligible bonds – some way off Promote renewables • Chamber of Commerce Economic Advisory Committee • Renewable energy & energy storage projects – Future Energy Group • Council and FutureIoW conferences (http://futureiow.co.uk) • Community role in operating the local grid – SSE liaison group
Fo Focus for this year Priorities • Refinance (Close, Triodos, CORE) • Resolve Isle of Wight Council loan position • Build financial reserves In the background • Promote renewable energy and EVs on the island • Foundations for new projects • Continue liaison with SSE
Br Break and ques estions
6. . Resolutions
6 6 Resol olutions 1. Approval of draft minutes of our first AGM, held on 20 th June 2017 2. Accept the Wight Community Energy audited accounts for the year ending 31st December 2017 3. Delegate to the directors the authority to appoint auditors and to fix their remuneration 4. Election of directors to the board
El Electi ction of of Directors Under rule 66 of the Society Rules, one third of the Directors must retire from office at each AGM The two longest serving directors are willing to retire and wish to stand for re-election • David Bunker • Colin Palmer Members are invited to register their interest in becoming a director • Anthony Woolhouse
7. 7. An Any y Other r Bu Business If you have any questions, please get in touch: info@iowcommunityenergy.org Mongoose Energy helpdesk: 03302 230 062
TAKING LOCAL ENERGY NATIONAL
Corp Corporate structure WIGHT COMMUNITY Community ENERGY £700,500 members (registered society) 100% OWNERSHIP Senior lender £3,080,000 Close Brothers HOMESTEAD COMMUNITY SOLAR (Community Interest Subordinate lender Company) £1,700,000 Isle of Wight Council
Homestead Community Solar CIC • Community Interest Company • Homestead is a wholly owned subsidiary of WCE • Used to manage the project financing and contractual arrangements • Receives income from the electricity generated by the solar farm • Pays the bank loan interest and the capital repayments • Also pays for ongoing project management • Maintains various accounts required by our loan agreement • Pays any surplus to WCE
Corporate Entities Mongoose Community Energy Members (MCEM) Wight Community Energy Other Community Benefit Ltd (WCE) – Community Societies Benefit Society (Mongoose Energy Clients) Asset Asset Management Management Mongoose Energy Services Services Limited Homestead Community Solar CIC Other Client CICs or SPVs (subsidiary of WCE, official owner of solar farm)
2016 2016 Outag ages • 11.2% lost production • Two primary causes: • Grid outages • SSE Active Network Management (ANM) • Met operating costs and service debt service. • Unable to pay members’ interest or community fund
2017 2017 Outag ages Total estimated impact: 588,529kWh (13.4% of total estimated annual production), £67,210 of lost income 27 th March – 21 st April 2017 Project was 100% curtailed for 25 days This was due to the National Grid 400kV refurbishment at Fawley Power Station substation Estimated impact: Loss of generation of 407,582kWh and income by £46,546 3 rd July – 6 th July 2017 Project was 100% curtailed for 4 days SSE Outage to transfer the site from the ANM system to DGAD system, allowing the site to generate throughout a wider planned outage Estimated impact: Loss of generation of 116,525kWh and income by £13,307 29 th August 2017 – 1 st September 2017 Export from the site was reduced to 25% of total capacity for 4 days 33kV outage required for 132kV Fawley – Cowes circuit refurbishment Estimated impact: Loss of generation of 64,422kWh and income by £7,357
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