Sharing ownership of renewable energy with communities

Transcription

1 Sharing ownership of renewable energy with communities Mike Smyth, Chair, Energy4All Winner of a 2012 Ashden Award.

2 Potential for community ownership talk structure What is community energy Why is community energy being promoted? Potential of community ownership Benefits of shared ownership Shared ownership what it is and typical structures

3 Aspirations of community energy more than generation; more than a financial interest Generate renewable electricity (or heat); ethical investment Sell electricity: generator to local member Manage/reduce demand Tackle fuel poverty Local development and security Participation in energy Campaigning; a mission for change

4 Drivers behind community energy Climate change Security of supply Impact of decentralised energy (inherently local) Localisation Affordable fuel poverty; diminishing reserves of cheap fossil fuel (on the Continent) an alternative to nuclear Major structural change needed, will happen and will be paid for by ordinary people

5 The Baywind Co-op Silverdale school visiting Harlock Hill

6 Energy4All s Mission To help the UK s transition to a low carbon economy To engage ordinary people in the operation and ownership of renewable energy Mission shared with Energy4All co-ops and delivered through Energy4All by co-ops co-operating

7 Energy4All Self financing Non profit distributing; owned by co-ops and staff 16 renewable energy co-ops; 22 more in development, extension or repowering Raised over 35 million share equity from over 12,000 community members Raised nearly 15 million in past 18 months 11 staff (full time equivalent); many volunteers in the co-ops

8 Energy4All trading co-ops summer 2016 Fully community owned Share in developer sites Ben Aketil Millenium SOL Kilbraur Boyndie Findhorn Drumlin Baywind EP Fenland Four Winds Westmill West Solent Wey Valley Springbok Schools

9 Energy4All co-ops co-operate! Shared mission to support development of new projects - a co-op get co-op model Expert development team financed by fundraising charges and surplus made on administration Share a professional construction, operations and administration service

10 Community Energy delivers Energy4All 2014/5 7 new co-ops launched 15 million raised in share capital 3,200 members of these co-ops Projects very varied

11 Spirit of Lanarkshire Nutberry

12 West Solent Solar Co-op Solar Century

13 Duckmanton Turbine Four Winds

14 Springbok

15 Wey Valley Solar - LED Lighting

16 Schools Energy Co-op - Glenleigh Park Primary Academy 150 kw Generated over 39,000 kwh this winter

17 The near future imminent new co-ops Shared ownership solar farms City wide co-op Edinburgh Repower Balcombe University Major retailer Findhorn solar and self supply Cumbrian hydro

18 Government motivations the community energy strategy Target 3GW capacity by 2020 target (shared ownership a major delivery channel) Community led action to increase renewable generation, manage demand, support local supply and local development New distribution channel active participation; differs from remote central generation to consumers About engagement more than planning but may improve planning success rate

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20 Government incentives SITR/EIS relief Extended pre-accreditation period EPC waiver on non residential premises Limited planning benefits Shared Ownership extended FIT band (5mW+5mW) Shared ownership protocol with statutory backing

21 Partnership ownership through community energy - Wey Valley Solar Schools

22 Fundraising - Run for the Sun

23 Wey Valley Solar Schools PV Installations School Name Size of Array kw kwh generated In 2014 Beacon School, Banstead Broadwater School, Farncombe Godalming Sixth Form College Guildford County School Rodborough School, Milford Woolmer Hill School, Haslemere Christ Church, Hastings (from September)

24 Benefits of shared ownership and/or partnership working to local authorities examples: Oxford, Plymouth, Edinburgh, Bath & NE Somerset Delivers renewable energy and social outcomes and community development through tangible, local, ethical investment No or limited investment required Local authority as facilitator not deliverer, optimises use of resources Surpluses benefit local community Mass engagement, not wholesale or high net worth - social investment for everyone Ownership not debt; fair but limited returns to community investors maximises financial benefit to community

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26 Shared ownership obligation Commercial project developers seeking to develop significant onshore renewable energy projects (that is above 2.5m in project costs) primarily for the purpose of exporting energy onto a public network should offer interested community groups shared ownership Continental precedent Denmark, Flanders Benefit to communities through deal flow and development expertise; potential benefit to developers

27 Shared Ownership examples (mainly from wind sector) 100% sale to a community group Shared ownership models (with mass community participation) Split asset ownership of same site Shared revenue projects Joint ventures

28 Sale to community group by developer or landowner Option to buy/sell all instead of part Normal EPC and O&M available Support during planning reflect in price Longer pre-accreditation period for FITs EIS or SITR tax relief probably available to community investors Sale of 5MW part of a 10MW solar farm is of very topical interest

29 Westmill solar farm bought from the developer by the community

30 Shared Ownership - assets Gold standard Can it be scalable or is it all or nothing? Attractive for split sites 5-10mW Best story easiest to raise money Standalone but can share grid at busbar Examples Baywind/Triodos (at Haverigg) and Fenland/EDF examples A number of solar farms in the pipeline

31 Fenland Green Power Co-op

32 Revenue Share/Sale of assets - Drumlin Developer subleases site to co-op on a revenue sharing rent Continues thereafter as if wholly owned by community EIS or SITR tax relief available

33 Drumlin Wind Farm Co-op example of co-op development

34 Revenue Share - Falck Effectively buys a partnership stake in net operating revenue No EIS or SITR tax relief on investment Limited control; PPA and debt outside control (solar may differ) Scalable Available to co-ops (as a partnership) Revenue share purchase and operating agreement Community energy light mainly about generation

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36 Joint ventures Share based (potentially) Stornoway windfarm No SITR relief; cannot use a co-op Can use a CIC PLC utilising capitalised community benefit Partnership based - Neilston No EIS or SITR relief but (probably) can use co-op

37 Shared ownership can make a difference

38 Role of Energy4All Delivers community energy projects Works with community groups, local and public authorities, landowners and developers Keen to deliver solar on social housing; different heat models; energy efficiency; innovative fundraising to increase mass engagement Innovation and scale

39 What you can do help deliver the energy revolution Invest! register interest at Broadcast! we need thousands of new supporters and investors please tell everyone! Participate!