CarES Conference 5 th March 2014 Sharing the 500MW Target Local - - PowerPoint PPT Presentation
CarES Conference 5 th March 2014 Sharing the 500MW Target Local - - PowerPoint PPT Presentation
Local Energy Scotland CarES Conference 5 th March 2014 Sharing the 500MW Target Local Energy Scotland CARES Conference Sharing the 500MW Target Welcome Mike Thornton Director, Energy Saving Trust Scotland Local Energy Scotland CARES Conference
Local Energy Scotland CARES Conference Sharing the 500MW Target
Welcome
Mike Thornton Director, Energy Saving Trust Scotland
Fergus Ewing
Minister for Energy, Enterprise and Tourism Local Energy Scotland CARES Conference Sharing the 500MW Target
Delivering Locally Owned Renewable Energy
CARES support for locally
- wned projects
Chris Morris Local Energy Scotland
Community and Renewable Energy Scheme (CARES)
The Scottish Government’s Is delivered by
Local Energy Scotland is a consortium of
About us
CARES – supporting communities
- Advice and support
- Start up grants up to £10k
- Access to pre-planning loans
up to £150k with write-off facility
- Hand-holding and knowledge
sharing
- Supporting access to REIF
CARES – supporting rural businesses
- Advice and support
- Toolkit to ensure rural business
is an informed buyer
- Access to pre-planning loans up
to £150k with write-off facility
- High level of community benefit
payments (£10k/MW)
- Community benefit guidance
and template agreements.
CARES – Supporting Innovation
- Scottish Government’s Infrastructure and Innovation Fund
- grant scheme that supports innovative solutions to
address barriers that communities face in areas of constrained electricity networks.
- Funded 12 projects in the last round
- Next funding round planned for May 14
- Example - Thermal Storage, Shetland Islands Council
Incorporation of large hot water storage tanks into council buildings. Tanks would be compatible with SSE North Isles New Energy Solutions Active Network Management (the intention of NINES is to stabilise the grid and allow more renewable generation to connect).
CARES – help & support
- Phoneline
- Local Development Officers
- Website:
- Case studies
- Toolkit
- Finance model & finance
ready checklist
- Templates, ITTs
Local Energy Scotland CARES Conference Sharing the 500MW Target
Euan Scott
Barra and Vatersay Wind Energy Ltd
Barra Community Wind Turbine
A blank canvas?
13
Wind Yield
14
Monthly average wind speeds at 40m agl during 2009 and 2009 Measured wind speed distribution and best-fit Weibull Curve (2009 data)
Bird studies
15
Archaeology
16
Otters
17
Access
18
Weight and width issues
19
Beach Landing
20
Bathymetric & Resistivity Tomography
21
Ramp
22
Access track
23
Rock
24
Blasting – laying the charges
25
Blasting
26
Foundation
27
Post Pour
28
Crofting
29
Workflow - steeplechase
30
Paper Chase – making it happen
31
Programming & work arounds
32
Payment Schedule
33
Cashflow
- 10,000
20,000 30,000 40,000 50,000 60,000
- 200,000
400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 05/12 09/12 01/13 05/13 09/13 01/14 05/14 09/14 01/15 05/15 09/15 01/16 05/16 09/16 01/17 05/17 09/17 01/18 05/18 09/18 01/19 05/19 09/19 01/20 05/20 09/20 01/21 05/21 09/21 01/22 casflow (C&I) primary axis loans (C&I) secondary axis DSR secondary axis
OHSBAS loan repayment DSR populated CARES loan repayment REIF (qrtly) & Triodos (mthly) C&I payments
34
Result - arriving Castlebay
35
Barge leaving Castlebay
36
Approaching landing ramp
37
Waiting for the tide
38
So near but so far
39
Weather windows
40
Finishing Touches
41
Demob main crane
42
Time for Completion is no later than nine (9) months after payment of Milestone 2 (M2) and provision of the Employer’s bank guarantee, but not earlier than eleven (11) months after contract signature and receipt of the first down payment (M1). But good to go this week.
Commissioning
43
Open Day
44
Why? Cycle of Belonging (Alastair McIntosh)
..a sequence for reconnecting with place, a cycle which perpetuates itself: When we start to connect with a place, we have the beginnings of "a sense of place“ This gives rise to a sense of identity; Which carries with it a sense of values This generates a sense of responsibility. That final sense of responsibility feeds back into renewing sense of place.
45
Local Energy Scotland CARES Conference Sharing the 500MW Target
Calum MacDonald
Point and Sandwick Development Trust
Beinn Ghrideag Community Wind Farm
Development Charity Owns the Trading Company
Point and Sandwick Development Trust
- All Voters in Point and Sandwick are eligible to
join – approx 2,000 eligible
- Currently 350 members
- Board composed of:
- Members
- 2 Community Councils
- Sandwick North Grazings Committee
The Largest Community Wind Farm in the UK
- Three x 3MW turbines (Enercon E82 E4)
- 145m to blade tip
- Will cost £15m to build
The Beinn Ghrideag Wind Farm
- 100% Community Owned
- All profit gift-aided to the development
charity for benefit of whole islands
- 5 ha, located on Sandwick North common
grazings
More Local Benefit than From Private Development
- Higher rent is paid to crofting shareholders
than to the landowner
- All the profit gift-aided to the Community
Trust
Comparison of community income from 9MW
Neighbouring Private Wind Farm
- £6,000 pa/MW to
community fund
- = £18,000 pa per turbine
- = £54,000 pa
Beinn Ghrideag Community Wind Farm
- £110,000 pa/MW in
community profit
- = £330,000 pa per turbine
- = £1 million pa
Example: Trust Commitments 2015-20
- Bethesda hospice: £50,000 pa
- Program for people with special needs: £30,000 pa
- Alcohol and drugs recovery program: £30,000 pa
- Island arts and culture: £20,000 pa
- Forestry on in-bye crofts: £40,000 pa
Our Target for Lewis 2020
- 10 crofting townships to develop a Beinn
Ghrideag each
- = 30 community turbines in Lewis
- = 90MW
- = £10 million pa community income
Potential in Scotland
- 550,000ha of common grazings in the Scottish
Highlands
- regulated by 508 Grazings Committees
- If just 10 % of these develops a Beinn Ghrideag
=250 ha =500MW = £50m pa in community income
Problems You Will Face
1) Funding the early development costs 2) Accessing appropriate technical & legal expertise 3) Funding the construction costs
Solutions
1) Local Energy Scotland funding 2) Develop long term relationships with legal & technical advisors 3) Use Gov-backed loans to leverage commercial debt: SIB, SIS, GIB, EIB (“debt is cheaper than equity”)
Example: Beinn Ghrideag Financing
£15 million construction cost
- Big Lottery - £1m
- Scottish Investment Bank - £1m
- Social Investment Scotland loan - £1m
- Santander Bank - £12m
Ordeals….
- Time
- Money
- Lawyers (making it ‘bankable’)
Assets….
- Solidarity – strength from community
- Patience – this is for future generations as well
as the present
- Motivation = determination
Questions
Co Coff ffee br break ak
We would love you to join the conversation @localenergysco with #CARES14
66
Achieving Local Generation Through Partnerships
CARES support for joint ventures
Melanie MacRae Local Energy Scotland
Joint ventures
CARES – Supporting communities engaging with commercial developments
- Scottish Governments Community
Benefit Register.
- Good Practice Principles for
Community Benefits (consultation).
- Advice to communities
- Start up grant
CARES – supporting joint ventures
- Advice via locally based Development Officers
- Start up grants (up to £20k) – finance, legal, community
consultation etc.
- Framework contracts to make it easy to access
professional advice
- CARES loan to support communities share of
development costs
- Help support liaison with REIF
- Work with National Forest Estate to support opportunities
to invest in wind and hydro projects.
- DECC Community Energy Strategy
- Community investment toolkit
Joint ventures case studies
Neilston Community Wind Farm
Ardrishaig Community Trust
Local Energy Scotland
Local Energy Scotland | Energy Saving Trust | Ocean Point 1 | 94 Ocean Drive | Edinburgh | EH6 6JH
localenergyscotland.org info@localenergyscotland.org 0808 808 2288 Local Development Officers contact details on our website @localenergysco
Contact Us
Local Energy Scotland CARES Conference Sharing the 500MW Target
Richard Lockett
Dingwall Wind Co-Op
Dingwall Wind Co-op
Richard Lockett – Founder Director
Project structure
Planning Technical Development Grid connection deposit Knockbain Farm 2011/12
13% Oversubscribed (£0.97M) 179 Members Average shareholding £4,780 71 less than £1,000 75% within 15 miles of turbine
Project structure
Planning Technical Development Co-op setup Grid connection deposit Knockbain Farm Dingwall Wind Co-op 2013
SEP
NOV
Planning Technical Development Grid connection deposit Knockbain Farm Dingwall Wind Co-op
Share offer
2013
OCT
Dingwall Wind Co-op
Co-op buys the project
2013
DEC
Knockbain Farm
Dingwall Wind Co-op
Co-op builds the turbine
2014
APR
Dingwall Wind Co-op
Grid connection
2014
MAY
Grid
Dingwall Wind Co-op
Income sources
2014
+20
Grid
Dingwall Wind Co-op
Costs
2014
+20
Grid
Surplus distributed
2014
+20
Grid Community Fund
What is a Co-operative Society ?
- Origins: Fenwick Weavers Society
1769, Rochdale Pioneers 1844
- Run for the benefit of its members
- Fair and democratic – one member
- ne vote
- Adheres to Co-operative principles
- Industrial and Provident Society
- Registered with Financial Conduct
Authority
Self help and self-responsibility Opportunities for education Member economic participation Honesty and openness Democracy and equality Concern for community Autonomy and independence Co-operation among co-operatives Social responsibility
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 Return to Co-op Members 22,000
Simplified profit and loss
Yr1, expected case (normal wind)
£ added total Income Feed-in Tariff + electricity sales 101,000 18,000 119,000 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 6,000 8,000 Additional rent 6,000 6,000 Return to Co-op Members 22,000 6,000 28,000 3-way split
Members Projected return (IRR) No EIS EIS Base Case 6.5% 9.8% Expected Case 7.5% 10.9%
Members cashflow investing £1000
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
- ptions
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 Spring 2015 First payments to Co-operative Members and Community Fund. 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
www.fintrydt.org.uk
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
- f fifteen at Earlsburn Windfarm
- ‘Production Sharing Agreement’
- Income used by FDT for other energy reduction
and sustainability projects
www.fintrydt.org.uk
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
www.fintrydt.org.uk
The Story
- Two residents looking at community renewable
possibilities in the local area – 10+ years ago
- Windfarm developer arrived on the scene
- Let’s not re-invent the wheel
- Sums looked good
– Feasibility study commissioned (EST grant)
www.fintrydt.org.uk
The Story - Negotiation
- Developer made two offers –
– ‘Community benefit’ payments or Co-operative investment – Both rejected - Wanted something that would benefit community as an entity
- Goal – make a connection between big renewables
and small, domestic renewables
www.fintrydt.org.uk
The Story
- Planning permission obtained
- How are we going to find £2.5million?
- Windfarm developer agreed to provide capital
– Has to be paid back at agreed rate of interest
- Windfarm feeds into grid
– We get 15th share of income minus capital repayments, interest, running costs etc
www.fintrydt.org.uk
The Story
- Deal signed
– Construction started Spring 2006 – Windfarm commissioned Dec 2007 – First cheque May 2008 (£140k) – First project delivered to the village Autumn 2008 – Total net income to date £350k
The Turbine
www.fintrydt.org.uk
Challenges
- Capital 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, RHI, FiT schemes change continuously
www.fintrydt.org.uk
Projects Delivered
- Domestic energy survey and insulation
– First project – 80% surveyed, 50% able to receive insulation
- Sports club
– 150kW wood chip boiler replacing oil boiler
- Micro-renewables scheme
– Over 25% of households now have some form of micro-renewable (from only 3% 3 years ago)
www.fintrydt.org.uk
Projects Delivered
- Current project aiming to cut energy poverty in the
village by 80% in next three years
- Fintry Energy Efficient Transport – rural car club
– 36 members, 6 homes have rid themselves of primary and secondary vehicles – Bikes added to scheme 2013 and EV added 2013
- Fintry Grant Scheme
– Approx 73 small grants of £500-£1000 to householders
www.fintrydt.org.uk
Projects Delivered
- School Woodland and outdoor activity centre
- 50+ native variety fruit tree community orchard
- Community Woodland secured
– Learning and workshop space – Planted 400 native species
- Community Garden
– Workshop / test bed educational space
www.fintrydt.org.uk
Projects Delivered
– Fintry Car Share Club – ‘Fintry Green Pages’—local business directory – Outreach (Film, visits, talks, etc.) – Carbon Cutter Police
www.fintrydt.org.uk
Activities
- Income from turbine so far £350,000
- We also apply for grants from other sources eg
Climate Challenge Fund and Big Lottery
- Currently have a staff of four funded by Climate
Challenge Fund until April 2015
www.fintrydt.org.uk
Problems
- Income is ‘lumpy’ – depends on wind throughout
the year and electricity prices
- Community pressures –
– How money is spent – Exposure
- Community capacity
– Less of a problem with staff
www.fintrydt.org.uk
(Fintry Renewable Energy Show) – 2nd & 3rd of May 2014
Guest Speaker - Werner Frohwitter - Feldheim Host/MC - Lesley Riddoch
* Land - Maitland Mackie * Energy - Richard Thorne - Garmony - Mull * Transport - Glenn Bennet – EAE * Food - Neil Forbes - Scottish chef of the year
Workshop A: Working towards finance Conference suite, 3rd floor Workshop B: Community benefits Orangebox Gallery, breakout area, 5th floor Workshop C: Opportunities on the Forestry Estate Orangebox Gallery, 5th floor Workshop D: Lessons shared Conference suite, breakout area, 3rd floor
Local Energy Scotland CARES Conference
13:00 Optional lunchtime seminar – Orangebox Gallery The social and economic impacts
- f community
wind energy.
Workshop sessions from 13:30
CARES Conference 2014 Socio-economic impacts Community-owned wind turbines Tiree & Udny experiences
Garth Entwistle Gilmorton Rural Development Chair: Udny Community Wind Turbine Co.Ltd.
123
2013 Survey of impacts Grampian Housing Association
- GHA (+ other H A’s ) keen to:
- Understand economic impact of renewable
energy developed in partnership with local communities – and in conjunction with social housing Aim is to lobby government for support – of all
- kinds. Financial, planning, local council support.
124
Socio-economic Survey
Tiree
- West Coast ,fragile, island
economy
- Agriculture, Tourism, Public
Services, Construction & Haulage
- Population: 720
- Turbine commissioned 2010
Udny
- East Coast, mainland, close
to Oil & Gas centre- Aberdeen.
- Full employment – various
activities.
- Oil & Gas v. important
- Population: 2,500
- Turbine commissioned 2011
125
Performance (I)
Tiree
- 900 kW Enercon E44
- Av. Wind utilisation
45%
- Annual surplus
£250,000
- (70) grants awarded 2011 & 2012
- Grants contributed approx. 24% of
project costs (average)
Udny
- 800kW E48
- 30%
- £100,000
- (23) in 2012
- 42%
126
Performance (II)
- Renewable energy grants - Key to the
leveraging out of additional sums
- Key / Critical
- Every £100,000 grant supports:
- - Tiree - £400,000 of activity
- - Udny - £250,000 of activity
127
Performance (III) - Tiree
- Project activities supports key industries on
Tiree – agriculture, tourism, recreation.
- Activities maintain, develop, safeguard wide
range of services available in Tiree
- Activities make a considerable contribution to
the economic & social life on Tiree
128
Performance (IV) - Udny
- Impacts are growing & widely appreciated
- Significant impact on the maintenance of
cultural heritage & local facilities
- Making a real difference to the quality of life
in and around Udny
129
Focus of activity (Project Values) Tiree
- Business Development
- £316,000
- Cultural Heritage
- £84,000
- Health & Well-being
- £82,000
- Quality of Life
- £8,000
Udny
- Cultural Heritage/facilities
- £90,000
- Health & Well-being
- £13,000
- Quality of Life
- £23,000
130
Projects – Business Development
- Discover Tiree – new web-site & app.
- - Project: £16,000 Grant: £10,000 (63%)
- Tiree Rural Centre – Upgrade & refurbishment
- - Project: £150,000 Grant: £21,000 (18%)
- Tiree Community Business – centre purchase
- - Project £150,000 Grant: £27,000 (18%)
131
Projects – Cultural Heritage / Facilities
- Tiree Tapestry Group – materials / equipment
- - Project: £4,000
Grant: £ 4,000 (100%)
- Tiree Maritime Trust – Boat Shed (4) boats
- - Project: £80,000 Grant: £22,000 ( 27%)
- Udny Church – Renovation of key features
- - Project: £28,000 Grant: £ 6,000 (20%)
- Udny Station Community Centre – PV panels
- - Project: £22,000 Grant: £ 4,500 (20%)
132
Projects – Health & Well-being
- Tiree Lunch Club – retention of activities
- - Project: £72,000 Grant: £13,530 ( 19%)
- Curam Thiriodh – Care in the Tiree community
- - Project: £10,000 Grant: £8,000 ( 81%)
- Udny First Responders – vehicle upgrade
- - Project £5,000
Grant: £5,000 (100%)
- Udny Community Pharmacy – planning
- - Project £8,200
Grant: £ 4,000 ( 49%)
133
Projects – Quality of Life
- Tiree Youth Work Week – various activities
- - Project: £3,000
Grant: £3,000 (100%)
- Tiree Tots – equipment
- - Project: £2,500
Grant: £600 ( 23%)
- 1st Udny Ranger Guides – camping equipment
- - Project: £500 Grant: £500
(100%)
- Pitmedden Music Festival – underwriting costs
- - Project: £10,344
Grant: £9,135 ( 88%)
134
Economic Impacts (I)
- Employment created:
- - Tiree – (4) full-time + (3) part time posts
- Considerable achievement within a fragile
economy
- Udny – (3) part-time posts with additional
posts expected as activity increases
- Tiree – significant impact on economic actvity
- Udny – significant impact on quality of life
135
Economic Impacts (II)
- Multiplier effects uncertain
- - much expenditure on good & service – from
- utside area
- - some local expenditure
- Maintenance / Development / Safeguarding
- activity
136
Recommendations (I)
- Future returns -community wind – shrinking
- FiT payments are degressing (reducing)
- FiT registration
current payments
- - to 30th Nov. 2012
11.01 p/kWhr
- - to 31st March 2014
10.05 p/kWhr
- - to 31st March 2015
7.83 p/kWhr
- further 10% degression expected October 1st
137
Recommendations (II)
- Pre-accredit projects before 1st Oct
- - need: planning permission / grid connection
- Returns beyond 1st October remain positive
but much less attractive
- £50,000 pa forecasts on good sites
- Is that sufficient ??
138
Workshop A: Working towards finance Conference suite, 3rd floor Workshop B: Community benefits Orangebox Gallery, breakout area, 5th floor Workshop C: Opportunities on the Forestry Estate Orangebox Gallery, 5th floor (main venue) Workshop D: Lessons shared Conference suite, breakout area, 3rd floor
Local Energy Scotland CARES Conference Workshop Locations
Workshop sessions from 13:30