Welcome to the CCF Moffat Gathering
Thursday 28th October 10.00am – 4.30pm
Presentations today from:
Mark Ruskell – Scottish Renewables
Jon Cape – Empower Community Fund
Gordon Cowtan – Fintry Development Trust
Fran Loots – Breathing Space Outdoors
Representatives here today from:
Climate Challenge Fund projects
Dumfries & Galloway Council
Southern Uplands Partnership
Scottish Government
Scottish Borders Council
Forestry Commission
and many more!
LEADER
Community Energy Scotland
Housing associations
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 – Chair
Sustainable Development Commission
Welcome
CCF Moffat Gathering Thursday 28th October 10.00am – 4.30pm
Mark Ruskell
Director of Communications at Scottish
Renewables
Mark Ruskell - Director of Communications
Scottish Renewables
Setting the scene- climate change, energy,
communities
QuickTime™ and a
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are needed to see this picture.
Energy 1970
Public
Delivery
Objectors
Supporters
Passive consumers
State Utilities
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TIFF (Uncompressed) decompressor
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QuickTime™ and a
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Technology
Energy 2010
Public
Active consumers
Beneficiaries
Generators
Developers
Delivery
Qu i c k Ti m e ™ a n d a
T IFF ( Un c o m p r e s s e d ) d e c o m p re s s o r
a re n e e d e d to s e e th i s p i c t u r e .
Qui ck Ti m e™ a n d a
TIFF (Un c om p re ss e d) de c om p re ss o r
a re ne e de d to s ee t hi s p ic tu re .
Q ui ck Ti me™ and a
TIFF (Uncompres sed) dec ompres s or
are needed t o s ee t his pic ture.
Qui ckTime™ and a
TIFF (Uncompressed) decompressor
are needed to see this pi cture.
Qui ck Ti me™ and a
TIFF (U ncompres sed) dec ompres s or
are needed to s ee this pic ture.
QuickTime™ and a
TIFF (Uncompressed) decompressor
are needed to see this picture.
QuickTime™ and a
TIFF (Uncompressed) decompressor
are needed to see this picture.
Technology
Private utilities
Co-operatives
Communities
ESCOs
Community Renewables Sharing Risk and Reward
Lower Reward
Lower Risk
£ per MW payout
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TIFF (Uncompressed) decompressor
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Higher Reward
Higher Risk
Energy 4 All
Fintry
CES
CCF Moffat Gathering Thursday 28th October 10.00am – 4.30pm
Gordon Cowtan
Director of Fintry Development Trust
The Fintry Story
Gordon Cowtan, Director, Fintry Development Trust
October 2010
Engaging with the
Renewables 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 Cape
Empower Community Fund
EMPOWER COMMUNITY
ACCELERATING 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 Structure
EMPOWER COMMUNITY
FOUNDATION
EC MANAGEMENT LLP
INVESTORS
EMPOWER
COMMUNITY FUND
LOCAL COMMUNITY
VEHICLE
PROJECT
PROJECT
PROJECT
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)
Solar PV for Social Housing
Phase 1 – Establishment
ROOF
OWNER
EMPOWER
COMMUNITY FUND
ROOF ACCESS
AGREEMENT
<100% OF CAPITAL
REQUIREMENT
SUPPLIER /
INSTALLER /
OPERATOR
TURNKEY
CONTRACT
PROJECT
SPV
PROJECT
ASSETS
FEED IN TARIFF
REVENUE
AGREEMENTS
ENERGY
COMPANIES
Solar PV for Social Housing
Phase 2 – Operation
ROOF
OWNER
ROOF ACCESS
PAYMENT
LOCAL COMMUNITY
VEHICLE
EMPOWER
COMMUNITY FUND
INCOME TO REPAY INVESTMENT
CAPITAL PLUS A VIABLE RETURN
SUPPLIER /
INSTALLER /
OPERATOR
PROFITSHARE HELD IN TRUST FOR THE
COMMUNITY
OPERATOR FEE
PROJECT
SPV
PROJECT
ASSETS
FEED IN TARIFF
REVENUE
PAYMENTS
ENERGY
COMPANIES
PROOF OF
GENERATION
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
EMPOWER COMMUNITY
alex.grayson@the-omni-group.net
jon@joncape.net
robert.knowles@the-omni-group.net
0789 490 9049
0757 756 4092
0774 815 1517
CCF Moffat Gathering Thursday 28th October 10.00am – 4.30pm
Fran Loots
Director of Breathing Space Outdoors
Community Engagement
Four Ps
UFOs and USPs
Power and Partnerships
• Who’s got the power?
• What is already
happening?
• Who can help?
Passion and Participation
• What excites people?
• What is fun to do?
• What will keep people
engaged?
Different approaches for
different people
UFOs
Un Friendly Objectors
Expect the unexpected!
USPs
North
Harris
Trust
Islands
Going
Green
Elgol
Skye
Comrie
Former
Army
Camp
“Never doubt that a small group of thoughtful,
committed citizens can change the world. Indeed it
is the only thing that ever has.”
(Margaret Mead, Social Anthropologist)
CCF Moffat Gathering Thursday 28th October 10.00am – 4.30pm
Alis Ballance
Moffat CAN (Carbon Neutral)
CCF Moffat Gathering Thursday 28th October 10.00am – 4.30pm
Question & Answer Session
for
Fran Loots & Alis Ballance
CCF Moffat Gathering Thursday 28th October 10.00am – 4.30pm
Break
CCF Moffat Gathering Thursday 28th October 10.00am – 4.30pm
Open Space Discussion Session on engaging
with your community on a community
renewable energy project:
Wind, Solar, Hydro, & Biomass
Use a mind map to capture your thoughts
Local authority
WIND
CCF Moffat Gathering Thursday 28th October 10.00am – 4.30pm
Shelagh Young – Chair
Sustainable Development Commission
Summary
CCF Moffat Gathering Thursday 28th October 10.00am – 4.30pm
Moffat CAN project site visit
If you would like to go on this half an hour whistle stop tour
please gather with Alis at the Moffat CAN stand
_________________________________
Thank you for coming
If you need any further information about today contact
Caroline at
caroline.stjohnston@sdc-scotland.org.uk
Or call 0131 625 1890