Cwmarian BusinessPlan Sept2009 v2

8/14/2019 Cwmarian BusinessPlan Sept2009 v2

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Business Plan

For

Cymdeithas Cwm Arian AssociationTo establish the Silver Valley area of North Pembrokeshire asan area of best practice for energy efficiency by providing aclean, renewable energy source!

Presented by

Michael Parcell

"usiness plan date

19th September 2009

#ontact details$ichael Parcell%lwynhelyg,&ermon,'logue,PembsS()* +T

Tel- +./)0 1).2314mail-mr5parcell6aolcom


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Contacts

#lient$ichael Parcell#ymdeithas #wm (rian (ssociation

%lwynhelyg,&ermon,'logue,PembsS()* +T

Tel- +./)0 1).2314mail- mr5parcell6aolcom

(ccountant

#urrently #ris Tomos is carrying out all accounting re7uirements of the renewable energy working group ##(( willappoint accountants when the necessity for this arises

"ank

The working group will set up a bank account specifically for the renewable energy pro5ect This will be with the#harity "ank who will also help fund the pro5ect via a loan

"usiness #onsultant8est 8ales #onsulting %tdP9 "o: 00&averfordwestS(*. 0(;

Tel- +.33+


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Table of Contents1 !"ecuti#e Summary $2 Business Bac%&round '/. Pro5ected "usiness (ctivity1// %egal "usiness escription0

/) V(T Status 0/2 #ommittee 4:perience.+/3 Support Team.+/* 4:ternal Support.+). $ission Statement..)/ "usiness 9b5ectives..)) #ritical Success Factors./)2 Bey Performance Cndicators./

$ (eli#ery of Products and Ser#ices 1)2. Products andDor Services.)2/ #ustomer Service.22) Terms of "usiness.3

22 Technology, Processes and 47uipment.323 Suppliers and Terms of Trade.32* Premises.32< istribution .021 %egislation.020 Cnsurances.02.+ Future Staff ;e7uirements.02.. 4mployment Policy/+2./ Training Policy and Plan/+2.) 47ual 9pportunities Policy/+2.2 &ealth and Safety Policy/+2.3 8elsh %anguage Policy/.2.* 4nvironmental Policy/.

2.< CT and e"usiness Policy/.2.1 #onfidentiality Policy/.

* The Mar%et 223. $arket 9verview//3/ #ustomer Profile/33) #ompetition / supply by/+.+ Ct is a re7uirement on all licensed electricity suppliers in 4ngland and8ales to supply a proportion of their electricity from ;4 generation Theobligation on each supplier will rise to .+2E by the year ending ).st $arch/+.+

The ;9 will run until /+/* providing a guaranteed market for renewableenergy The e:pected market for eligible renewables is e:pected to e:pandthree fold from the present level of .+T8h to /3T8h in /+.+ 'overnmentestimates that by /+.+ the ;enewables 9bligation and #limate #hange %evy

will be worth G.bn a year to the renewables sector

The 8elsh (ssembly 'overnment has committed to achieving 1++megawatts =$8> onshore wind by /+.+ This target was published in T(N1,their national planning policy statement on renewable energy

Financial Projections(s a result of our findings we are very confident that a market e:ists forprovision of renewable energy for sale to the National 'rid and for theservices that ##(( offer to the local community (s such, in the ne:t fiveyears we are confidently forecasting income and profits of-

@ear Pro5ected Turnover Profit "efore rawingsDTa:

/++1I/++0 G+ IG1)/++0I/+.+ G0,*.* IG.3,.12/+.+I/+.. G)/3,+)0 G.01,122/+..I/+./ G))*,0)0 G/+1,/)./+./I/+.) G)20,.0. G//.,1)2

Funding e!uirementThe success of ##((Js renewable energy initiative is dependent on aninvestment of G.,/.+,+++ to cover essential start up and ongoingmaintenance costs as detailed below-

(e#elopment Costs%and #ost G+8ind Testing #ost G+Planning #ost G2+,+++Plant K 47uipment #ost G*++,+++

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"uilding #ost G)1*,*++Financial Service #ost G.1,+++%egal #ost G2,3++Cnsurance #ost G0,+++Pro5ect $anagement G/3,+++

9ther Pro5ect Start ?p #osts G**,+++.1/1$9/100

#ash Flow ;e7uirements G*+,0++

Total -undin& euirement .1/210/000

This investment will help ensure the successful launch and longItermprosperity of the wind turbine pro5ect

Cn addition, a restoration fund will be set up in order to establish an accountthat can be used to either restore the site at the end of the life of the pro5ect=.3 H /+ years> or be used to reIinstate a new turbine on the site This willcommence after five years of turbine revenue generation in order that ongoingcosts can be reduced by repayment of much of the loans that are financingthe pro5ect and a fund for the support of local initiatives and education cancommence immediately revenue is generated

Sources of Funding##(( hopes to raise the finance as detailed below-

Source of -undin& Amount?nity "ank G)++,+++%ow #arbon #ommunities Fund G3++,+++#ommunity Share 9ffer =#redit ?nion Support> G)++,+++9ther FundingL G..+,+++

Total .1/210/000

L 9ther Funding I is re7uired in order to finance the Planning process=G2+,+++> and the repayments of the Finance 8ales and#harity "ank %oans prior to revenue generation

=G

This additional funding will be via a combination ofsponsorship, grant funding and other loan schemes whichare to be identified

Case for "rantue itJs environmental and community development nature, the ##(( windturbine pro5ect will be eligible for some grant The scheme will generate asignificant new income stream into the local community and create both directand indirect local employment (n e:ample of an eligible grant scheme is4nvironmental 'oods and Services for G/+,+++ of grant funding

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Benefits of "rant"y supporting this scheme the 8elsh (ssembly 'overnment =8('> woulddemonstrate support of a community based environmental pro5ect Thispro5ect will also help 8(' to achieve its commitments to their ;enewable9bligation and to achieving targets set by T(N1 Cn addition permanent 5obs

and revenue will be generated within a rural community and there are nodisplacement issues

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2 Business Bac%&round

21 Proected Business Acti#ity

Achie#ements To (ate

The @nni #wm (rian 4nergy working group was formed to enable backgroundresearch to be carried out into utilising ;enewable 4nergy resources and toinvestigate 4nergy 4fficiency for local households in the Silver Valley area, ofNorth Pembrokeshire

Part of the work being carried out in the &eritage work identified varioushistorical means of using water power on farms, mills and in 'logue Muarry(n investigation into the use of local streams for modern microIhydro systemswas carried out This investigation identified one e:isting unused water turbine

and three potential microIhydro sites ( Preliminary Feasibility Study wasproduced which included calculations of potential energy production ande:ample diagrams of installations

?sing this study as an e:ample of the 4nergy 'roupJs credentials, anapplication was made to the Pembrokeshire #oastal National Park (uthorityfor a Sustainable evelopment Fund =SF> grant to carry out a wider studyinto all forms of sustainable energy within the Silver valley area Cn ecember/++3, the group was awarded a small SF grant to employ a specialistcompany to undertake this study P%(N4 also came forward with somematchIfunding to cover the ancillary costs of the work (fter tendering, the

work was awarded to ulas %td of $achynlleth to carry out a feasibility studyinto the possibilities of using wind, water and biomass sources to generateelectricity locally and to advise in the implementing of 4nergy 4fficiency in thehome

9ver anuary, February and $arch of /++*, ulas carried out site visits toinvestigate wind and water sites, met with the 4nergy 'roup and carried deskIbased work using specialised computer packages The finalised;enewable 4nergy Feasibility Study ;eport was presented to the SilverValley association in late $arch and public meetings were held to broadcastthe findings Cn addition, a 7uestionnaire was delivered by hand to all thehouseholds within the area to invite comment upon various aspects of 4nergy4fficiency and ;enewable 4nergy

The study identified a site that looked promising for the siting of two windturbines on the hills behind %lanfyrnach These wind turbines would provideincome from selling the generated electricity to the National 'rid this wouldgenerate money that can be put back into the community for the benefit of itsresidents The microIhydro and biomass options appeared less viable andhave been put on hold for the time being

http://www.cwmarian.org.uk/Cwm%20Arian%20Report.pdfhttp://www.cwmarian.org.uk/Cwm%20Arian%20Report.pdf


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( preIplanning application including the findings of the ulas ;eport wassubmitted in $ay /++< and the committee are awaiting a response from theplanning department in response to this

Proected Acti#ity

The group is now considering the ne:t phase of undertaking a detailed studyof the identified windIpower site to take measurements over a period of )I*months ##(( are investigating the possibility of using readings from anothernearby site to satisfy this for planning application and financial forecastingpurposes and it is assumed that this is possible within this plan Cf this is notacceptable it is estimated that the study will cost circa G),+++ to complete andthe committee are currently identifying possible funding options in order toproceed with this

(t the same time ##(( will be identifying possibilities for funding the full

pro5ect on the assumption that full planning permissions are gained and thatthe wind tests confirm the pro5ections made within the ulas report

9n completion the two ./ million $egawatt turbines, it is estimated that fromselling electricity generated to the National 'rid, #wm (rian will bring in anincome of G)++,+++ pa 9nce costs are covered the surplus would be usedfor local community development

The purchase and installation costs of two turbines is circa G.,.++,+++

22 3e&al Business (escription

The proposed renewable energy pro5ect is currently being organised by#wmdeithas #wm (rian #ommunity (ssociation &owever due to thesignificant investment and revenue potential involved it is proposed that aseparate business entity is set up

The community (ssociation will take legal, accountancy and business advice=including from the 8ales #oI9perative Network> as to the best trading formatfor the new business Ct is intended that the business will operate as a social

enterprise

2) 4AT Status

&aving spoken to an independent energy consultant ##(( have beenadvised that they will have to become V(T registered on commencing thepro5ect and that energy sold to the national grid will be charged at . and #limate #hange %evy 4:emption

#ertificates =%4#s>



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2$ Committee !"perience

The key members of the #ommunity (ssociation who are going to takeresponsibility for this pro5ect are as follows-

Mi%e ParcellH esign 4ngineer 8orked as an energy manager with localauthorityCris TomosH #hairman of communityBill (a#iesH Vice #hairmanAidan 3an&donH Secretary

2* Support Team

ulas %td H ;enewable 4nergy #onsultants

8elsh (ssembly 'overnment Pembrokeshire #ounty #ouncil Planning epartment and Pembrokeshire

National Parks Sustainable evelopment Fund

$embers of the #ommunity (ssociation

The local population to &ermon and surrounding areas %and 9wner, on whose property the turbines will be built

2+ !"ternal Support

Source=s> of Funding- Finance 8ales?nity "ankSponsorship4arned ;evenue

(ccountant- #ris Tomos"ank- %loydsTS" "ank"usiness #onsultant- 8est 8ales #onsulting, &averfordwest

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) Aims and 5becti#es

)1 Mission Statement

To establish the Silver Valley area of North Pembrokeshire as an area of bestpractice for energy efficiency by providing a clean renewable energy source

)2 Business 5becti#es

6ear 5ne 7ey 5becti#es #omplete wind testing by anuary /++0

9btain full planning approval by une /+.+

Secure Funding re7uired

6ear Two 7ey 5becti#es(pply won funding to capital works

#omplete (ll building works and turbine erection by une /+..

6ear Three 7ey 5becti#es #ommence electricity generation in uly /+..

'enerate turnover of over G)++,+++

4mploy a maintenanceDmonitoring employee in uly /+.+ 4mploy a community energy liaison officer in anuary /+.+

#ommence reducing &ousehold #arbon Footprint by 3+E

4stablish a profit level of over G.0+,+++ for investment into local communityschemes

6ear -our 7ey 5becti#es $aintain all staffing in line with the plan

'enerate turnover of over G)++,+++ Set .+ year goals for a total annual #arbon Tonnage ;eduction of ./,3++

tonnes across /1)2 house holds =population of *,1/ 4stablish a profit level of over G/++,+++ for investment into local community

schemes

6ear -i#e 7ey 5becti#es $aintain all staffing in line with the plan

'enerate turnover of over G)/+,+++ $onitor #arbon usage to and average of 22 tonnes per household down

from 11 tonnes 4stablish a profit level of over G/++,+++ for investment into local community

schemes

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)) Critical Success -actors

'aining Planning Permission in a timely fashion and to budget

8ind Tests support evidence from e:isting research to erect the turbines

Support of %andowner

Securing full funding to complete work

$aintaining local resident support for the pro5ect

(rranging or being able to provide facilitiesDservices that local people want

and are willing to support

$onitoring each household #arbon Tonnage usage

$aintaining the continued support of main stakeholders during the

planning and building process $aintaining continuity and ongoing commitment of the e:isting #ommittee

)$ 7ey Performance 8ndicators

;esults from the wind tests as compared with pro5ections made within this

plan

Price paid by the National 'rid in comparison to pro5ected pricing

(ctual k8h output level generated once in operation

;evenue generated that can be used to support local initiatives The number of local initiatives promoted as a result of the pro5ect

;eduction of ./,3++ #arbon Tonnes per annum from /1)2 households

The number of local residents directly affected by initiatives introduced as

a result of the pro5ect

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$ (eli#ery of Products and Ser#ices

$1 Products andor Ser#ices

The potential technologies have been assessed by the ReSolutions team at Dulas

and are summarised in the table below as the potential for implementation in Cwm

Arian.

This illustrates that other than general promotion of energy efficiency the 8indTurbine is the only suitable technology available for a large scaledevelopment in this area For the full analysis of all the options availableplease see the ;eSolutions ;eport

:ind TurbineThe wind turbines will be formatted as two ./++ k8 turbines to give a total of

/2++ k8 This will produce an estimated (nnual output of 3,/3*,+++ k8hbased on the plant working at /3E of capacity

These wind turbines would provide income from selling the generatedelectricity to the National 'rid this would generate money that can be putback into the community for the benefit of its residents 9nce costs arecovered the surplus would be used for local community development and inthe education of the local population in further energy saving techni7ues

Carbon -oot Print eduction ; !ner&y !fficiencyThis community based education will focus on how sustainable energy can

help to tackle many of the problems that confront individuals and communitiesin the following areas-

Save money and reduce debts ;educe waste and improve the environment

Cmprove housing conditions

#reate 5obs and training opportunities Cmprove health

#ontribute to community regeneration

This will be achieved via community initiatives and education that will focus on

the following areas-

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.+E I administrative fees #wm (rian

$2 Customer Ser#ice

##(( understand that they need the support of the local community if theyare to achieve their mission They encourage two way communications withlocal residents and hold regular meetings to show transparency and inclusion( 7uestionnaire has also been distributed to every household in the local area

to encourage further feedback

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$) Terms of Business

##(( will offer standard trade terms with the National 'rid for payment ofelectricity produced from the win turbines

$$ Technolo&y/ Processes and !uipment

##((, in association with their support network, will make e:cellent use oftechnology and e7uipment to establish the feasibility of the site for wind powerand the impact this will have on the local environment This includes thesoftware and e7uipment used to produce the ulas ;eport as well as futureuse of anemometers to establish wind speeds at the site 9n construction thesite will offer two ./$8 wind turbines

$* Suppliers and Terms of Trade

Post development there will be little re7uirement for formal suppliers 8hereregular transactions are envisaged with a supplier trade account, terms of )+days credit would be arranged

$+ Premises

The map below shows the area in which the turbines are to be situated andthe local area to be served-



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Cnitial site identification was undertaken via a desk based study scoping thearea for suitable sites for electricity generation using large scale windturbines Two sites were identified I these being at the cross roads above;hosIyIllyn at grid reference /)0 )/+, and along the ridge abovePantygwyddel at grid reference /)+ )++, as follows-

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An idea of the sizes of such plant can be gained from the illustration below, as well

as an indication of the level of electricity output.

Using Windfarmer software and the GIS information which provides topographical

information it is possible to assess the field of visual impact on the surrounding area.

The map below shows the zones from where any installed turbines may be seen,

based on the proposed 1.2MW machines, known as a Zone of Visual Impact (ZVI).

Smaller machines will have shorter towers and a smaller blade diameter and hence

will have less of a visual impact than the largest machines modeled. The ZVI

generated is considered by Dulas experts to be favourable for the site, especially as

there is little impact to the National Park.

"usiness Plan for #ymdeithas #wm (rian (ssociationPage . ;egulations .00< and the ;egulatory;eform =Fire Safety> 9rder /++3

9ther employment considerations include National $inimum 8agelegislation, arranging employers liability insurance and ensuring e7uality oftreatment in recruitment

$9 8nsurances

Ct is estimated that insurance costs at the development stage will be circaG*,+++ and that ongoing annual insurances during the life of the operationalperiod will be in the region of G*,+++ The insurer chosen will specialise inthis type of installation

$10 -uture Staff euirements

9n completion of the pro5ect, ##(( would like to train a new employee to be

responsible for the running of the pro5ect in the form of the ongoing monitoringand maintenance of the wind turbines



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Cn addition, ##(( would like to employ a liaison officer whose responsibilitywill be to help educate the local community in relation to energy efficiencyThis officer would also help with formal bids and awards of grants for energyefficiency initiatives within the community

( budget of G.3,+++ per annum has been set aside for employment This willbe G


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ensure that all processes and systems are designed to take account of healthand safety

$1* :elsh 3an&ua&e Policy

##(( is committed to the promotion of the 8elsh language Signage andpromotion will carry both 8elsh and 4nglish (lso, new employees who arebilingual would be advantageous but not essential

$1+ !n#ironmental Policy

This pro5ect is intended to become a model for an environmentally friendlycommunity Ct is also intended to be seen as a centre of best practice andeducation with regards to environmental and energy reduction issues

##((Js environmental and energy policies will include the following-

?ndertaking activities that are respectful of the natural environment and

which seek to protect it

Cmparting knowledge indicating a caring, environmental stance

eveloping customers, suppliers and other stakeholders own responsibility

and knowledge for protection of the environment

(dvising customers, suppliers and other stakeholders where possible on

processes or options which help preserve the environment

#hoosing the most environmentally friendly route where re7uirements andeconomics allow

Promotion of recycling andDor reusing materials used

Promotion of safe disposal of any waste products which may be harmful to

the environment

Saving energy where possible and educating others of how to do this

$1, 8T and eBusiness Policy

##(( is committed to the appropriate use of CT in delivering services and willseek advice as to best practice within this field ( review of CT usage andimprovements to delivery would take place annually

$1' Confidentiality Policy

##(( will adhere to the ata Protection (ct =.002> in all matters relating tocustomer, visitor, stakeholder and employee information that may be held Noinformation will be disclosed to third parties without the prior knowledge andconsent of the persons concerned

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* The Mar%et

*1 Mar%et 5#er#iew

Mar%et Bac%&round;enewable energy sources have been known for many years, but it is onlyduring the past /+ years that modern technology and investment has beenapplied to produce viable alternatives to fossil fuel that can produce energy ona useful scale

The stimulus to develop renewables is being driven by several factors-

#arbon emissions from fossil fuels are causing global warming and there is

pressure to reduce the amount of carbon dio:ide produced in energy

production The ?B is soon to become a net importer of gas and later of oil, as North

Sea reserves are depleted "y /+/+, the country could be dependent onimported energy for is the mechanism by which the 'overnmentis intending to achieve its target of .+E ;enewable 4lectricity =;4> supply by/+.+ Ct is a re7uirement on all licensed electricity suppliers in 4ngland and8ales to supply a proportion of their electricity from ;4 generation Theobligation on each supplier will rise to .+2E by the year ending ).st $arch/+.+

The ;9 will run until /+/* providing a guaranteed market for renewableenergy The e:pected market for eligible renewables is e:pected to e:pandthree fold from the present level of .+T8h to /3T8h in /+.+ 'overnmentestimates that by /+.+ the ;enewables 9bligation and #limate #hange %evywill be worth G.bn a year to the renewables sector

Industry GrowthCn /++3, the ?B became one of only eight countries in the world to break the .gigawatt installed capacity barrier and the following graphs show that thisperiod of growth is set to continue

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Source? The British :ind !ner&y Association @B:!A Annual eport for 200*

Welsh Assembly CommitmentThe 8elsh (ssembly 'overnments has committed to achieving 1++megawatts =$8> onshore wind by /+.+ This target was published in T(N1,their national planning policy statement on renewable energy

!ner&y !fficiency at a 3ocal 3e#elVia the program of community based initiatives and education, ##(( will aimto tackle some of the issues relating to domestic energy use as highlightedbelow-

omestic &ouseholds are responsible for /3E of #9/emissions This couldbe reduced to .1E through better energy efficiency

The average ?B household spends G*/+ on fuel and power every year and

could save G/3+ through better efficiency &ouseholds spending more than .+E of their income on fuel are in fuel

poverty ./ million ?B households are in fuel poverty

%ow income pensioners and single parents are at higher risk from fuel

poverty / million gas customers are in debt =9F'4$>

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)+,+++ people die of coldIrelated illnesses every year( third of all housing falls below the decent home standard

Non decent housing leads to cold and dampIrelated illnesses such ashypothermia and respiratory problems

3ocal Population Analysis Census 2001

(t the time of the #ensus in (pril /++., theresident population of %S9( Pembrokeshire++. =the %S9( in which the pro5ect is to beplaced> was .,./2 of whom 20 per cent weremale and 3. per cent were female Thiscompared with a resident population inPembrokeshire of ..2,.). people, of whom21 per cent were male and 3/ per cent were

female

The average age of the population in %S9(Pembrokeshire ++. was )


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Settlement Population

";@N"4;C(N )+

";@N"8( /3

#;9SS84%% )+

#;@$@#& *.+

4'%8@S8;8 .1+

'%(N8; 33

'%9'?4 3+

&4;$9N .13

%%(NF@;N(#& *+

P4N@';94S .+

P9ST'8@N /+

;&@84NF(#& .+

Ct is estimated that through (nalysis of these figures together with localknowledge and distribution and return of the 7uestionnaires that the total localpopulation in the three main areas directly affected by this pro5ect is roughly-

Focus Population to kick off %ow #arbon ;eduction'%9'?4 ./+&4;$9N )13%%(NF@;N(#& ..+

Total %ocal Cnhabitants *.3

8ider 2 8ards Population and &ouseholds =/++< stats>Population &ouseholds

#rymych .,.


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"usiness Plan for #ymdeithas #wm (rian (ssociationPage /*

S9#C9%9'C#(%

Pembrokeshire made up of 0 response from areas within thelocal community

T4#&N9%9'C#(%

Cnternet allows 7uick, interactive and low costcommunication

888 and web site presence can aidbusiness profile and generate business

;enewable energy sources such as wind

power are capable of producing useful energyat local level This feature could lead to aredistribution of energy with less reliance on atransmission network and more locallygenerated power

8ind Power is currently the cheapest form ofrenewable energy that can be produced on alarge scale

4NVC;9N$4NT(%

Planning sensitivities, especially in PembsNational park area

;ecycling and minimum wastage policies

?se of materials with high insulationDenergysaving characteristics

4nvironmental grants for commercialbusinesses

#arbon emissions from fossil fuels arecausing global warming and there is pressureto reduce the amount of carbon dio:ideproduced in energy production

4#9N9$C#(%

#urrent significant central funds availabledependent on pro5ectDbusiness need forS$4JsDsocial enterprises=eg 9b5ective.Dmatched funding etc>

Subsidised consultancy fees for S$4Jsthrough central funding schemes

'rant funding available from various publicbodies

Cntegration of the 4uro into the ?B over thene:t 3I.+ years

SalaryDearnings levels in rural areas are belowthe 8elsh average

National minimum wage

The ?B is now facing a situation in which it willsoon become a net importer of energy, first forgas and second for oil (lthough renewableenergy will only make a small contribution toimport substitution, its contribution will grow

P9%CTC#(%

8elsh (ssembly committed to development ofS$4Js in 8ales

Stable political climate in 8ales encouragingsignificant inward investment

4? legislation regarding new entrants to 4?This could reduce the amount of fundavailable to support 8elsh businesses

9ngoing commitment to regeneration in keyareas in 8ales

There will be continued pressure from the'overnment to reduce carbon emissions andrenewable energy will continue to be animportant part of this strategy #ommitment tothe ;enewable 9bligation =;9> is evidence ofthis

%4'(%

Cnsurance implications such as vehicleinsurances, publicD employerJs liability and PC

National $inimum wage

ata Protection (ct

4mployment contracts and employeesstatutory rights

Planning ;egulations


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*) Competition

(lthough there are other sites offering wind generated =and other renewableforms such as solar, hydro etc> power due to the commitments to the T(N1policy it is estimated that demand for renewable power will continue to be

greater than available supply for some time into the future

The lifespan of the ##(( pro5ect is /+ years and although the market placemay have changed dramatically within this time =for instance the proposedwave power development in the $ilford &aven estuary> it is still e:pected thatthere will be demand for as much energy that can be produced throughout thelife of the pro5ect and certainly for the number of years until ##(( achievebreakeven

** Competiti#e Ad#anta&e

##(( will achieve competitive advantage through a combination of thefollowing factors-

Strong foundation of committee members who are committed to developing

the pro5ect and helping the local community on a voluntary basis Support of the land owners on which the wind turbines are to be sited

Support of the local community

The ability to call upon other community based pro5ects to establish best

practice

*+ !"ternal 8nfluences

The e:ternal influences relating to ##(( are shown below-

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+ Mar%etin&

+1 Messa&e

To establish the Silver Valley area of North Pembrokeshire as an area of bestpractice with regards to energy efficiency and by provision of a cleanrenewable energy source

+2 Positionin&

##(( will position themselves as a provider of a renewable energy source forsale to the National 'rid

##(( will position themselves within the community as a source ofinformation and education in relation to energy efficiency and in the support of

local good causes

+) Brandin&

The branding for ##(( as displayed on the (ssociationJs web site isillustrated below-

This branding is simple yet effective at portraying the environment in whichthe (ssociation works This, together with other marketing material andinformation published, will help to e:plain the particular challenges that thelocal area faces and strengthen ##((Js message in facing these challenges

+$ Pricin& 5becti#es

##(( will look to ma:imise the pricing received from the National 'rid fromthe renewable energy production

epending on the activity ##(( aims to provide other local services at anominal rate or free of charge

+* Price (etermination

;enewable energy price will be determined by the current price offered by the

National 'rid ue to the siOe of the operation it is e:pected that there will belittle room to negotiate pricing

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8here a nominal price is charged for ##((Js other servicesDevents this willbe to cover costs incurred by the (ssociation and to fund other pro5ects orsupport local charities

++ Price Adustment Strate&ies

Pricing for local servicesDevents will be determined on a case by case basisand all pricing will be 5ustified by a clear statement of how these funds are tobe used by the (ssociation

+, Mar%etin& Methods

(irect 3iaison with the ational =ridue to the government targets for renewable energy sources ##(( will nothave to market their services to the National 'rid but rather establish acommunication structure to negotiate and liaise with the National 'rid Thiscontact will be made via telephone, eImail, letter, fa: and face to facemeetings where appropriate

Mar%etin& of 5ther Ser#icesThe revenue generated from the sale of energy to the National 'rid isdesigned to make a difference to the local community in the form of educationto reduce in energy usage and costs including awarding a number of grants to

help make the changes re7uired Cn addition this revenue will help othercommunity based schemes and local charities Ct is this message that needsto be portrayed in order to help to establish local support for the scheme

(fter the scheme has been implemented and revenue is being received it isimportant that all events and initiatives are well publicised so that the largestproportion of the local community can be reached

Cn order to market these messages to the local community the following mediawill be utilised-

DuestionnairesH to establish the type of services wanted by the localcommunity

ewsletterH to maintain regular contact with the community and tonotify of progress and future initiatives

3eafletsH for promoting specific events:eb SiteI with updates on the scheme progress and to notify of

future initiatives3ocal Meetin&sH to act as a forum in which the community can voice their

views:ord of MouthH ##(( should encourage the local community to discuss

the initiatives being proposed

"usiness Plan for #ymdeithas #wm (rian (ssociationPage /0


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3ocal Si&na&eH The (ssociation will place local signs in strategic placesaround the local community in order to raise awarenessof events

Press eleasesI ##(( will make regular press releases to the local mediasuch as the 8estern Telegraph and ;adio

Pembrokeshire to try and gain free e:posureMeetin&s!#ents I The events organised by ##(( should be used as a

platform in which to promote future events and initiatives

"usiness Plan for #ymdeithas #wm (rian (ssociationPage )+


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, Sales

#urrent research indicates that the following turnover for ##(( is realisticallyachievable-

6ear Proected Turno#er

/++1I/++0 G+

/++0I/+.+ G0,*.*

/+.+I/+.. G)/3,+)0

/+..I/+./ G))*,0)0

/+./I/+.) G)20,.0.

Ct is important to note that further wind tests are to be conducted which willoffer further evidence to pro5ected turnover

,1 Sales Channels

(ny en7uiries would be handled by the nominated committee memberresponsible for the activity in 7uestion

,2 Sales Personnel

The chair of the management committee and other committee members willtake responsibility for promoting the services and facilities provided Cnaddition other voluntary members of the local community may help to promote##((Js work through organised activity or word of mouth

,) Mana&in& !nuiries

4n7uiries about ##(( will be dealt with by a member of the managementcommittee (ll en7uires would be dealt with within 21 hours 4n7uiries wouldbe dealt with via telephone, email and at organised events

,$ 8n#oicin& andor Payment Collection

For the purposes of this plan it is assumed that payment from the National'rid will be on a monthly basis in arrears

"usiness Plan for #ymdeithas #wm (rian (ssociationPage ).


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' -inance

'1 -inancial Accounts of !"istin& or Acuired Business

(s the ;enwable 4nergy pro5ect is being run by a new 8orking 'roup thereare no e:isting Financial (ccounts available

'2 -inancial Proections

(s a result of our findings we are very confident that a market e:ists forprovision of renewable energy for sale to the National 'rid and for theservices that ##(( offer to the local community (s such, in the ne:t fiveyears we are confidently forecasting sales and profits of-

6ear Proected Turno#er Profit Before (rawin&sTa"

/++1I/++0 G+

IG1)/++0I/+.+ G0,*.* IG.3,.12/+.+I/+.. G)/3,+)0 G.01,122/+..I/+./ G))*,0)0 G/+1,/)./+./I/+.) G)20,.0. G//.,1)2

') Sensiti#ity Analysis

The breakeven point of the business is shown below-

6ear 1 6ear 2 6ear ) 6ear $ 6ear *

Cncome G+ G0,*.* G)/3,+)0 G))*,0)0 G)20,.0.

Fi:ed #osts G1) G/2,1++ G..2,023 G..),


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Plant K 47uipment #ost G*++,+++"uilding #ost G)1*,*++Financial Service #ost G.1,+++%egal #ost G2,3++Cnsurance #ost G0,+++

Pro5ect $anagement G/3,+++9ther Pro5ect Start ?p #osts G**,+++

.1/1$9/100

#ash Flow ;e7uirements G*+,0++

Total -undin& euirement .1/210/000

This investment will help ensure the successful launch and longItermprosperity of the wind turbine pro5ect

Cn addition a restoration fund will be set up to establish an account that can beused to either restore the site at the end of the life of the pro5ect =.3 H /+years> or be used to reIinstate a new turbine on the site This will commenceafter five years of turbine revenue generation so that ongoing costs can bereduced by repayment of much of the loans that are financing the pro5ect anda fund for the support of local initiatives and education can commenceimmediately revenue is generated

'+ Sources of -undin&

##(( hopes to raise the finance as detailed below-

Source of -undin& Amount?nity "ank G)++,+++%ow #arbon #ommunities Fund G3++,+++#ommunity Share 9ffer =#redit ?nion Support> G)++,+++9ther FundingL G..+,+++

Total .1/210/000

L 9ther Funding I is re7uired in order to finance the Planning process=G2+,+++> and the repayments of the Finance 8ales and

#harity "ank %oans prior to revenue generation=G

This additional funding will be via a combination of sponsorship, grant funding=such as G/+,+++ from 4nvironmental 'oods and Services> and other loanschemes =such as Pembrokeshire %ottery Cnterest Free %oan> which are to beidentified ##(( will also approach the loan providers to establish thepossibility of having a payment holiday at the start of the loan until revenuegeneration starts

"usiness Plan for #ymdeithas #wm (rian (ssociationPage ))


35/41


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Cost Assumptions

Development Costs

Land Cost 0Wind Testing Cost 0

Planning Cost 40,000

Plant & Equipment Cost 600,000Building Cost 386,600

Finanial !e"#ie Cost $8,000

Legal Cost 4,%00

nsu"ane Cost ',000P"o(et )anagement *%,000

+te" P"o(et !ta"t -p Costs 66,0001,149,100

. ul /ug !ep +t o# 1e . an Fe2 )a" /p" )a . un Total

ea" $ 0 0 0 0 0 0 6,665 6,665 6,665 6,665 6,665 6,665 40,000

ea" * 0 0 $$0,'$0 $$0,'$0 $$0,'$0 $$0,'$0 $$0,'$0 $$0,'$0 $$0,'$0 $$0,'$0 $$0,'$0 $$0,'$01,109,100

ea" 3 0 0 0 0 0 0 0 0 0 0 0 0 0

1,149,100

Operational Costs

)aintenane & Consuma2les %3,663

nsu"ane %,'*6

Land ental 8,0$%Business ates 3,860 Te sedule 7o" tese osts a"e illust"ated 2elo9

+#e"eads ',45%

e7u"2isment 0

80,939

: n"ease . ul /ug !ep +t o# 1e . an Fe2 )a" /p" )a . un Total

ea" $ 0: 0

ea" * 0: 0

ea" 3 0: 6,54% 6,54% 6,54% 6,54% 6,54% 6,54% 6,54% 6,54% 6,54% 6,54% 6,54% 6,54% 80,939

ea" 4 $: 6,8$* 6,8$* 6,8$* 6,8$* 6,8$* 6,8$* 6,8$* 6,8$* 6,8$* 6,8$* 6,8$* 6,8$* 81,748

ea" % $: 6,880 6,880 6,880 6,880 6,880 6,880 6,880 6,880 6,880 6,880 6,880 6,880 82,566

Planning ost inu""ed in ea" one; /ll ote" de#elopment osts inu""ed in ea" to;

"usiness Plan for #ymdeithas #wm (rian (ssociationPage )3


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evenue Assumptions

Estimated /nnual P"odution %,*%6,000

e#enue Pe" =W p"odued? 0;06$0

Total ea"l e#enue 3*0,6$6

?Te "e#enue pe" =W son is inlusi#e o7 all enea2le +2ligation Ce"ti7iates and Climate Cange Le# E@emption Ce"ti7iates ;

evenue !rea"#o$n%

. ul /ug !ep +t o# 1e . an Fe2 )a" /p" )a . un Total

ea" $ 0

ea" * 0

ea" 3 *6,5$8 *6,5$8 *6,5$8 *6,5$8 *6,5$8 *6,5$8 *6,5$8 *6,5$8 *6,5$8 *6,5$8 *6,5$8 *6,5$8 320,616

ea" 4 *6,'8% *6,'8% *6,'8% *6,'8% *6,'8% *6,'8% *6,'8% *6,'8% *6,'8% *6,'8% *6,'8% *6,'8% 323,822

ea" % *5,*%% *5,*%% *5,*%% *5,*%% *5,*%% *5,*%% *5,*%% *5,*%% *5,*%% *5,*%% *5,*%% *5,*%% 327,060

Te assumption as 2een made tat "e#enue pe" =W p"odued ill in"ease $: ea" on ea";

Estimated /nnual P"odution is 2ased on *%: o7 ma@imum p"odution le#els possi2le;

Ct is important to note that no costs have been shown for investment by ##(( into community schemes The level of investmentpossible is shown on the ne:t sheet which summarises the total profit possible throughout the life of the scheme

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1e#elopment Costs Loans epaments +ngoing )aintenane Costs e#enue Cumulati#e P"o7itALoss

ea" $ $,$4',$00 $3,0$0 $,$6*,$$0

ea" * $3,0$0 80,'3' 3*0,6$6 '3%,444

ea" 3 $3,0$0 8$,548 3*3,8** 506,38$

ea" 4 $3,0$0 8*,%66 3*5,060 454,8'5

ea" % $3,0$0 83,3'* 330,33$ *40,'68

ea" 6 $3,0$0 84,**% 333,634 4,%6'

ea" 5 $3,0$0 8%,068 336,'5$ *34,3*3ea" 8 $3,0$0 8%,'$8 340,340 45%,53%

ea" ' $3,0$0 86,558 343,544 5$',6'0

ea" $0 85,64% 345,$8$ '5',**6

ea" $$ 88,%** 3%0,6%3 $,*4$,3%5

ea" $* 8',405 3%4,$60 $,%06,$$0

ea" $3 '0,30$ 3%5,50$ $,553,%$0

ea" $4 '$,*04 36$,*58 *,043,%84

ea" $% '*,$$6 364,8'$ *,3$6,3%'

ea" $6 '3,035 368,%40 *,%'$,86$

ea" $5 '3,'68 35*,**% *,850,$$'

ea" $8 '4,'05 35%,'45 3,$%$,$%'

ea" $' '%,8%6 35',505 3,43%,0$0

ea" *0 '6,8$% 383,%04 3,5*$,6''

Assumptions:

1e#elopment osts a"e tose identi7ied in te 1ulas epo"t

Loan epaments te assumption is made tat all 1e#elopment Costs a"e 7inaned #ia a $0 ea" loan at 6:+ngoing )aintenane Costs and e#enue a"e assumed to "ise 2 $: ea ea"

Summary:

B"ea=e#en in identi7ied as 2eing aie#ed in ea" 5

Te total p"o7it o#e" *0 ea"s is o#e" 3;%m i an 2e used to suppo"t loal ommunit de#elopment;

/ sepa"ate 7und 7o" te "einstatement o" "e2uild at te site at te end o7 te li7e o7 te p"o(et must 2e ta=en out o7 te p"o7it 7igu"e;

&ummarise# !rea"even an# '(ole o) *i)e +roe-t +ro)it.*oss

"usiness Plan for #ymdeithas #wm (rian (ssociationPage )


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'' Case for =rant

ue itJs environmental and community development nature the ##(( windturbine pro5ect will be eligible for grant The scheme will generate a significant

new income stream into the local community and will create both direct andindirect local employment (n e:ample of an eligible grant scheme is4nvironmental 'oods and Services for G/+,+++ of grant funding

'9 Benefits of =rant

"y supporting this scheme the 8elsh (ssembly 'overnment =8('> woulddemonstrate support of a community based environmental pro5ect Thispro5ect will also help 8(' to achieve its commitments to their ;enewable9bligation and to achieving targets set by T(N1 the Cn addition 5obs andrevenue will be generated within a rural community



40/41

Appendices

S:5T Analysis

Strengths 8eaknesses

9pportunities

Threats



41/41

S:5T Analysis

Stren&ths edicated voluntary committee with wide ranging skills

Support of the land owner ##(( is an e:isting (ssociation so the infrastructure is already in place to

market this new pro5ect to the local community

Strong #ommunity Spirit

(ttractive ;ural Setting of the three villages

:ea%nesses %ack of e:perience amongst committee members in relation to setting up or

running large scale energy pro5ects

;eliance on e:ternal funding ;eliance on planning permission

;eliance upon voluntary help in order to establish the pro5ect

9utside the T(N1 areas

5pportunities 9ngoing 'overnment support of schemes producing renewable energy

Future 4nergy Cnitiatives

'rant Funding Support

Threats 8ind Tests show that under /3E utilisation is possible

?nable to obtain planning permissions

?nable to secure e:ternal funding

;esistance from the local community to the construction of wind turbines

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Cwmarian BusinessPlan Sept2009 v2

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