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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!
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CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Alis Ballance Moffat CAN Welcome
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CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Shelagh Young – Chair Sustainable Development Commission Welcome
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CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Mark Ruskell Director 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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Objectors Supporters Passive consumers State Utilities Energy 1970 PublicDelivery Technology
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Active consumers Beneficiaries Generators Developers Private utilities Co-operatives Communities ESCOs Energy 2010 Public Delivery Technology
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Community Renewables - Sharing Risk and Reward Higher Reward Higher Risk Lower Reward Lower Risk £ per MW payout Energy 4 All Fintry CES
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CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Gordon Cowtan Director of Fintry Development Trust
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The Fintry Story Gordon Cowtan, Director, Fintry Development Trust October 2010
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Engaging with the Renewables Industry Our story – What we did Other stories – What others have done What the future holds – The futures bright etc
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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
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The Story Two residents looking at community renewable possibilities in the local area – 6/7 years ago Windfarm developer arrived on the scene Lets not re-invent the wheel Sums looked good – Feasibility study commissioned (EST grant)
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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
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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
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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
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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
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The Turbine
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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
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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
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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!
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CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Question & Answer Session for Mark Ruskell & Gordon Cowtan
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CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Break
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CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm What do you need to KNOW, FEEL & DO to bring a community renewable energy project to you town/village?
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CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Lunch
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CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Jon Cape Empower Community Fund
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EMPOWER COMMUNITY ACCELERATING THE TRANSITION TO SUSTAINABLE LOW CARBON LOCAL ECONOMIES
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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
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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
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EMPOWER COMMUNITY FOUNDATION INVESTORS LOCAL COMMUNITY VEHICLE EMPOWER COMMUNITY FUND EC MANAGEMENT LLP EC MANAGEMENT LLP PROJECT Empower Community Structure
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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)
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EMPOWER COMMUNITY FUND PROJECT SPV ROOF ACCESS AGREEMENT <100% OF CAPITAL REQUIREMENT ROOF OWNER PROJECT ASSETS ENERGY COMPANIES FEED IN TARIFF REVENUE AGREEMENTS Solar PV for Social Housing Phase 1 – Establishment SUPPLIER / INSTALLER / OPERATOR TURNKEY CONTRACT
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EMPOWER COMMUNITY FUND PROJECT SPV ROOF ACCESS PAYMENT ROOF OWNER PROJECT ASSETS ENERGY COMPANIES Solar PV for Social Housing Phase 2 – Operation 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
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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
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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
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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
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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
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EMPOWER COMMUNITY alex.grayson@the-omni-group.net 0789 490 9049 jon@joncape.net0757 756 4092 robert.knowles@the-omni-group.net0774 815 1517
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CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Fran Loots Director of Breathing Space Outdoors
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Community Engagement Four Ps UFOs and USPs
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Power and Partnerships Whos got the power? What is already happening? Who can help?
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Passion and Participation What excites people? What is fun to do? What will keep people engaged?
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Different approaches for different people
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UFOs Un Friendly Objectors Expect the unexpected!
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USPs North Harris Trust Elgol Skye Islands Going Green Comrie Former Army Camp
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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)
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CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Alis Ballance Moffat CAN (Carbon Neutral)
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CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Question & Answer Session for Fran Loots & Alis Ballance
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CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Break
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CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Open Space Discussion Session on engaging with your community on a community renewable energy project: Wind, Solar, Hydro, & Biomass
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Things we need to find out Barriers Benefits People we need to engage Local authority Long term community income Local anti-wind campaigners Planning rules Who will support us locally? Anything you think of – there are no rules! Funding Use a mind map to capture your thoughts WIND
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CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Shelagh Young – Chair Sustainable Development Commission Summary
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CCF Moffat Gathering Thursday 28 th 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
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