TAKING LOCAL ENERGY NATIONAL Wig ight Community Energy AG AGM 20 - - PowerPoint PPT Presentation

TAKING LOCAL ENERGY NATIONAL

Wig ight Community Energy AG AGM

20th 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

• blems

Ou Outages

11.2% lost production

2016 2017 2018

13.4% lost production, £67,210 of income 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

• sition

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

£82k £55k £23k

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

• f 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

• 1. Approval of draft minutes of our first AGM, held on 20th 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

6 6 Resol

• lutions

El Electi ction of

• f 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 ENERGY (registered society) HOMESTEAD COMMUNITY SOLAR (Community Interest Company) 100% OWNERSHIP Senior lender Close Brothers Subordinate lender Isle of Wight Council Community members £700,500 £3,080,000 £1,700,000

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

Mongoose Community Energy Members (MCEM)

Corporate Entities

Wight Community Energy Ltd (WCE) – Community Benefit Society

Mongoose Energy Limited

Homestead Community Solar CIC (subsidiary of WCE, official

• wner of solar farm)

Other Community Benefit Societies (Mongoose Energy Clients) Other Client CICs or SPVs

Asset Management Services Asset Management Services

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 27th March – 21st 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 3rd July – 6th 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 29th August 2017 – 1st 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