ARGYLL & BUTE COUNCIL, LOCHGILPHEAD Community Shares Meeting · 2016-09-02 · ARGYLL & BUTE COUNCIL, LOCHGILPHEAD Community Shares Meeting th8 September 2015 George Dean ... o Co-ordination
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ARGYLL & BUTE COUNCIL, LOCHGILPHEAD
Community Shares Meeting
8th September 2015
George Dean
Director, Islay Energy Trust and Islay Energy Community Benefit Society
The Islay Context
o Declining population, and non-standard age distribution
o Transport links, their cost and reliability
o Affordable housing availability (and proportion of second homes) o Poor broadband and mobile services
o Thriving whisky industry
o Tourism and related business growing
o Agriculture and fisheries important but no growth
o Limited numbers of well-paid jobs, and also candidates for all jobs
Islay Energy Trust
o Incorporated 2005, registered as a charity 2007
o Emerged from the Islay Development Company
o Open to anyone over 17 years of age, living or owning property on Islay, Jura or Colonsay
o Community-owned charity, with now 350 members
o Aims: to develop and operate renewable energy projects for the benefit of the community, and to reduce the islands’ carbon footprint
A Few Numbers
o Activity driven primarily by Board volunteers until 2009
o Total spend up to March 2009 of £70k
o From then to July 2015, total spend on own operations of >£1.1m
o Average of 2.5 FTE’s employed p.a. – total staff costs of £0.6m
o Local spend on facilities, consultants etc., of £0.3m
o Estimate of £0.4m additional spend on Islay by project developers
o This is a direct contribution to the island’s economy
Project Areas
o Tidal stream
o Carbon saving/energy efficiency/biomass/solar o Offshore wind
o Biofuels
o Onshore wind o Hydro o Regulations, plans and politics
Tidal Stream
o Initial research with Robert Gordon University
o Joined forces with SPR in 2009. Hired local project officer o Conducted local environmental and marine research
o Developed fisheries mitigation plan and onshore sub-station project o Sound of Islay 10MW project has been consented – awaits final SPR
decision
o Provide local services to DP Energy
o Secured Crown Estate lease for a tidal demonstration zone off SW Islay (joint activity with EMEC)
Carbon Savings/Energy Efficiency
o Local energy adviser supported by CCF and Changeworks
o All domestic properties and community buildings surveyed (approx 1,000)
o 300 properties eligible for improved insulation (foc) o 3 community buildings supported (£25k) o Domestic renewables promotional events
o Approx 100 properties with ground or air source heat pumps and 40 with solar PV
o 2 large-scale biomass boilers (High School and Hospital)
Offshore Wind
o Proposal for three major offshore wind farms announced by SSE and SPR (2009) o Argyll Renewables Communities formed (Islay/Tiree/Kintyre) o Socio-economic impact studies commissioned by IET
o Significant involvement with Marine Scotland and its planning processes
o None of these projects has been pursued
Biofuels
o Celtic Renewables/Napier University aim to produce biobutanol from distillery draff o Research on Islay as a potential site for a future plant o Understanding the current material flows and local usage
o Impacts on transport, farmers, possible sites, planning issues, economics
o Local communications
o Test facilities being established by CR at Grangemouth – revisit in 2- years
Onshore Wind – Islay Challenges
o HIAL airport o Bird population
o Grid connection/strength
o SSSIs o Visual Impacts
o A few farm-scale installations o No shortage of wind!
The Castlehill Project
o £1.2m capex, Enercon E-33 turbine, grid upgrade at Crinan o Funded by £535k from community shareholders, £750k loan from REIF/SIB o Construction through 2014, handover in April 2015 o Project development by IET, ownership by Islay Energy Community Benefit Society o IET provides all operational services (annual fee) o IECBS covenants all surplus to IET (after shareholder interest and loan
repayments) o IET (as a charity) distributes funds to selected projects or groups (based on local research)
Just some of those involved...
» Scottish Natural Heritage
» Scottish Investment Bank
» Community Energy Scotland
» The Big Lottery Fund
» Highlands and Islands Enterprise
» Climate Challenge Fund
» Highlands and Islands Airports
» Diageo
» Argyll & Bute Council
» Co-Operative Development Scotland
» IECBS investors
» Laggan Estate
» Dr Colin Anderson
» Enercon
» Green Cat Renewables
» F MacGillivray
» Land Use Consultants
» RJ McLeod
» W&M Currie
» TA & WN Wood
» I MacPherson
» Scottish & Southern Energy
» Prelec
» Alex McIntosh
» J&L Logan
Challenges and Lessons Learned
o Planning permission, airport, geese, grid connection, delays o Evaluation of potential organisational and financial structures o Developing the prospectus and marketing the project o Co-ordination of multiple groups involved o Negotiation with landowner (SNH) o Modelling and due diligence – 13 contracts and 3 variations o Massive volunteer effort o Community involvement (an election required for Board members!)
Etched on our memories
o A qualified technical project manager is essential o Board sign-off on all financial commitments o The main beneficiary should be the community o Evaluation of lenders, their conditions and cap due diligence costs o Keeping the community and investors involved
Next Steps
o Estimate of £60/£80k annual community benefit fund (doubling after loan repaid) – equivalent to £200k per MW installed o Engage Grants Development Officer and establish a Grants Advisory Panel o Publish process for applications / select some small revenue-generating projects o Dream about the next big IET project ………..tidal array? …… another turbine?
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