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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.

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Presentation on theme: "Welcome to the CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Presentations today from: Mark Ruskell – Scottish Renewables Gordon Cowtan."— Presentation transcript:

1 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!

2 CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Alis Ballance Moffat CAN Welcome

3 CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Shelagh Young – Chair Sustainable Development Commission Welcome

4 CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Mark Ruskell Director of Communications at Scottish Renewables

5 Mark Ruskell - Director of Communications Scottish Renewables Setting the scene- climate change, energy, communities

6 Objectors Supporters Passive consumers State Utilities Energy 1970 PublicDelivery Technology

7 Active consumers Beneficiaries Generators Developers Private utilities Co-operatives Communities ESCOs Energy 2010 Public Delivery Technology

8 Community Renewables - Sharing Risk and Reward Higher Reward Higher Risk Lower Reward Lower Risk £ per MW payout Energy 4 All Fintry CES

9 CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Gordon Cowtan Director of Fintry Development Trust

10 The Fintry Story Gordon Cowtan, Director, Fintry Development Trust October 2010

11 Engaging with the Renewables Industry Our story – What we did Other stories – What others have done What the future holds – The futures bright etc

12 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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14 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)

15 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

16 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

17 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

18 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

19 The Turbine

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21 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

22 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

23 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!

24 CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Question & Answer Session for Mark Ruskell & Gordon Cowtan

25 CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Break

26 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?

27 CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Lunch

28 CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Jon Cape Empower Community Fund

29 EMPOWER COMMUNITY ACCELERATING THE TRANSITION TO SUSTAINABLE LOW CARBON LOCAL ECONOMIES

30 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

31 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

32 EMPOWER COMMUNITY FOUNDATION INVESTORS LOCAL COMMUNITY VEHICLE EMPOWER COMMUNITY FUND EC MANAGEMENT LLP EC MANAGEMENT LLP PROJECT Empower Community Structure

33 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)

34 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

35 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

36 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

37 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

38 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

39 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

40 EMPOWER COMMUNITY

41 CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Fran Loots Director of Breathing Space Outdoors

42 Community Engagement Four Ps UFOs and USPs

43 Power and Partnerships Whos got the power? What is already happening? Who can help?

44 Passion and Participation What excites people? What is fun to do? What will keep people engaged?

45 Different approaches for different people

46 UFOs Un Friendly Objectors Expect the unexpected!

47 USPs North Harris Trust Elgol Skye Islands Going Green Comrie Former Army Camp

48 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)

49 CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Alis Ballance Moffat CAN (Carbon Neutral)

50 CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Question & Answer Session for Fran Loots & Alis Ballance

51 CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Break

52 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

53 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

54 CCF Moffat Gathering Thursday 28 th October 10.00am – 4.30pm Shelagh Young – Chair Sustainable Development Commission Summary

55 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 Or call


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