Welcome to the CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Presentations today from: Mark Ruskell – Scottish Renewables Gordon Cowtan – Fintry Development Trust Jon Cape – Empower Community Fund Fran Loots – Breathing Space Outdoors Representatives here today from: Climate Challenge Fund projects Scottish Government LEADER Dumfries & Galloway Council Scottish Borders Council Community Energy Scotland Southern Uplands Partnership Forestry Commission Housing associations and many more!
Transcript
Welcome to the CCF Moffat Gathering
Thursday 28th October 10.00am – 4.30pm
Presentations today from:
Mark Ruskell – Scottish Renewables Gordon Cowtan – Fintry Development TrustJon Cape – Empower Community Fund Fran Loots – Breathing Space Outdoors
Representatives here today from:
Climate Challenge Fund projects Scottish Government LEADER Dumfries & Galloway Council Scottish Borders Council Community Energy Scotland Southern Uplands Partnership Forestry Commission Housing associations
and many more!
CCF Moffat Gathering Thursday 28th October 10.00am – 4.30pm
Alis Ballance Moffat CAN
Welcome
CCF Moffat Gathering Thursday 28th October 10.00am – 4.30pm
Shelagh Young – ChairSustainable Development Commission
Welcome
CCF Moffat Gathering Thursday 28th October 10.00am – 4.30pm
Mark RuskellDirector of Communications at Scottish Renewables
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Mark Ruskell - Director of Communications Scottish Renewables
Setting the scene- climate change, energy, communities
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ObjectorsSupporters
Passive consumersState Utilities
Energy 1970
Public Delivery
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Technology
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Active consumers BeneficiariesGeneratorsDevelopers
Private utilitiesCo-operativesCommunities
ESCOs
Energy 2010
Public Delivery
Technology
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QuickTime™ and aTIFF (Uncompressed) decompressor
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QuickTime™ and aTIFF (Uncompressed) decompressor
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QuickTime™ and aTIFF (Uncompressed) decompressor
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QuickTime™ and aTIFF (Uncompressed) decompressor
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QuickTime™ and aTIFF (Uncompressed) decompressor
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QuickTime™ and aTIFF (Uncompressed) decompressor
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Community Renewables - Sharing Risk and Reward
Higher RewardHigher Risk
Lower RewardLower Risk
£ per MW payout Energy 4 AllFintryCES
CCF Moffat Gathering Thursday 28th October 10.00am – 4.30pm
Gordon CowtanDirector of Fintry Development Trust
The Fintry Story
Gordon Cowtan, Director, Fintry Development Trust
October 2010
Engaging with theRenewables Industry
• Our story– What we did
• Other stories– What others have done
• What the future holds– The future’s bright etc
Our Story - About Fintry
• Approx 330 households• Adult population around 550• Primary school, village hall, sports club
(incorporating shop)• Most people commute to Glasgow,
Edinburgh, Stirling• Not on mains gas
The Story• Two residents looking at community
renewable possibilities in the local area – 6/7 years ago
• Windfarm developer arrived on the scene• Let’s not re-invent the wheel• Sums looked good
– Feasibility study commissioned (EST grant)
The Story - Negotiation• Developer made two offers –
– ‘Community benefit’ payments– Co-operative investment– Both rejected
• ‘Locked room’ meeting– Agreement reached in principal
• Conclusion– Community apply for own turbine– Will be built along with the rest
The Story
• Planning permission obtained• How are we going to find £2.5million• Deliberate policy of not seeking any grant
funding for capital cost– Reproducability– Stakeholders
• Fruitful discussions with commercial lenders
• Also need PPA, grid connection etc etc
The Story
• Ultimately developer made an offer– We piggy-back on their project finance and
deals– Capital cost– Maintenance contracts– PPA agreement
• Too good to turn down although downsides– Whip hand in relationship with developer
The Story
• Deal signed– Construction starts Spring 2006– Windfarm commissioned Dec 2007– First cheque May 2008 (£140k)– Anticipated income approx £50k - £100k pa– First project delivered to the village Autumn
2008
The Turbine
The Story
• Projects delivered –– Domestic energy survey and insulation– Sports club, village hall, school– FRESCo –
• Domestic renewables• Own energy advisor started in July
– Future projects• Enterprise project manager started in July• Looking at a wide variety of other initiatives
Challenges
• Cost for whole village £4 million– Our income £50k - £100k each year
• Hard to insulate houses– At least 50% of the village– Can cost £10k or more per house
• Government changes– Grants, loans, schemes change continuously
• Village dynamics– Development trust fatigue
Why?
• Climate change really matters• Community-level engagement can make a
difference– Govt tends to focus on individuals, business
and government– Gives people a sense they can do something
• Local project for local people• It has been great fun!
CCF Moffat Gathering Thursday 28th October 10.00am – 4.30pm
Question & Answer Session for
Mark Ruskell & Gordon Cowtan
CCF Moffat Gathering Thursday 28th October 10.00am – 4.30pm
Break
CCF Moffat Gathering Thursday 28th October 10.00am – 4.30pm
What do you need to KNOW, FEEL & DO
to bring a community renewable energy project to you town/village?
CCF Moffat Gathering Thursday 28th October 10.00am – 4.30pm
Lunch
CCF Moffat Gathering Thursday 28th October 10.00am – 4.30pm
Jon CapeEmpower Community Fund
EMPOWER COMMUNITYACCELERATING THE TRANSITION TO SUSTAINABLE
LOW CARBON LOCAL ECONOMIES
Market Need and Objectives• Energy security + 34% carbon reduction by 2020• £300bn+ investment requirement• Large-scale uptake of distributed energy and energy
efficiency measures• Resource allocation for social and environmental
benefit that encourages large-scale community participation, ownership and responsibility
• Community engagement (public/private/civil) and local ownership of assets
What is the Empower Community Fund (ECF)?
• Funding mechanism for investment in renewable energy and energy efficiency projects at a community level
• Bridging the gap between decentralised energy projects and institutional investors on best possible terms for the community
• Social enterprise-based, rapidly scalable balanced stakeholder model
• Promotes community revenue share and asset ownership
• Transition tool to strengthen resilience of local communities
EMPOWER COMMUNITY FOUNDATION
EMPOWER COMMUNITY FOUNDATION
INVESTORS LOCAL COMMUNITY VEHICLE
LOCAL COMMUNITY VEHICLE
EMPOWER COMMUNITY FUND
EMPOWER COMMUNITY FUND
EC MANAGEMENT LLP
EC MANAGEMENT LLP
PROJECTPROJECTPROJECTPROJECTPROJECTPROJECT
Empower Community Structure
Solar PV and the Feed In Tariff• Feed In Tariff in UK law 1 April 2010• ‘Generation Tariff’ - <4 kWp paying 41.3p/kWh • ‘Export Tariff’ - 3p/kWh for balance exported• Free daytime electricity within building (deemed 50/50)• Payments index-linked and guaranteed for 25 years• Feed In Tariff provides sufficient income to provide
repayment of capital plus a return, as well as a revenue stream for the roof owner and community
• Larger installations can also be included (e.g. public sector buildings)
EMPOWER COMMUNITY FUND
EMPOWER COMMUNITY FUND
PROJECT SPV
ROOF ACCESS AGREEMENT
<100% OF CAPITAL REQUIREMENT
ROOF OWNERROOF
OWNER
PROJECT ASSETS
PROJECT ASSETS
ENERGY COMPANIES
ENERGY COMPANIES
FEED IN TARIFF REVENUE
AGREEMENTS
Solar PV for Social HousingPhase 1 – Establishment
SUPPLIER / INSTALLER / OPERATOR
SUPPLIER / INSTALLER / OPERATOR TURNKEY
CONTRACT
EMPOWER COMMUNITY FUND
EMPOWER COMMUNITY FUND
PROJECT SPV
ROOF ACCESS PAYMENT
ROOF OWNERROOF
OWNER
PROJECT ASSETS
PROJECT ASSETS
ENERGY COMPANIES
ENERGY COMPANIES
Solar PV for Social HousingPhase 2 – Operation
SUPPLIER / INSTALLER / OPERATOR
SUPPLIER / INSTALLER / OPERATOR
INCOME TO REPAY INVESTMENT CAPITAL PLUS A VIABLE RETURN
PROFITSHARE HELD IN TRUST FOR THE COMMUNITY
FEED IN TARIFF REVENUE
PAYMENTS
OPERATOR FEE
PROOF OF GENERATION
LOCAL COMMUNITY VEHICLE
LOCAL COMMUNITY VEHICLE
The Deal - Summary
• 25 year roof access agreement• Up to 100% of capital requirement from ECF• Feed In Tariffs paid to Project SPV• Operator fees paid from FIT revenues• Roof access payment to roof owner• Profit share to Local Community Vehicle • Tenants/Occupiers receive free daytime
electricity
Benefits to Roof Owners & Community
• Lower emissions and improved building stock at no capital cost: CRC benefits for larger organisations
• Free use of electricity generated on site• Long-term revenue stream for roof owner• Local Community Vehicle with long-term profit share
= ideal multi-stakeholder vehicle for transition to low carbon economy
• Opportunity for local employment and training• ‘Halo effect’ for other building owner/occupiers• Very low risk for all local stakeholders
Why Empower Community?
Our distinctive social enterprise model provides…• Substantial revenue share from Y1 for 25 years, with
no capital outlay or maintenance cost to roof-owner• Flexibility over which properties are included – not
just the ones which provide the highest return• Complete supply, install and operate package through
proven delivery partners• Scope to build a “whole house, whole community”
low carbon programme together• Local asset ownership after 25 years
Next Steps
• Identify suitable properties• Agree Heads of Terms to include:
– Scope & objectives of intended project– Description of intended relationships and
responsibilities of parties involved in the project– Timescales & schedule to full agreement
• TIME IS OF THE ESSENCE: 41.3p per kWh lasts until March 2012
