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

Welcome to the CCF Moffat Gathering

Thursday 28th October 10.00am – 4.30pm

Presentations today from:

Mark Ruskell – Scottish Renewables Gordon Cowtan – Fintry Development TrustJon 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!

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 – ChairSustainable Development Commission

Welcome

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

Mark RuskellDirector 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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ObjectorsSupporters

Passive consumersState Utilities

Energy 1970

Public Delivery

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Technology

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Active consumers BeneficiariesGeneratorsDevelopers

Private utilitiesCo-operativesCommunities

ESCOs

Energy 2010

Public Delivery

Technology

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QuickTime™ and aTIFF (Uncompressed) decompressor

are needed to see this picture.

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QuickTime™ and aTIFF (Uncompressed) decompressor

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Community Renewables - Sharing Risk and Reward

Higher RewardHigher Risk

Lower RewardLower Risk

£ per MW payout Energy 4 AllFintryCES

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

Gordon CowtanDirector of Fintry Development Trust

The Fintry Story

Gordon Cowtan, Director, Fintry Development Trust

October 2010

Engaging with theRenewables 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 CapeEmpower Community Fund

EMPOWER COMMUNITYACCELERATING 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 FOUNDATION

EMPOWER COMMUNITY FOUNDATION

INVESTORS LOCAL COMMUNITY VEHICLE

LOCAL COMMUNITY VEHICLE

EMPOWER COMMUNITY FUND

EMPOWER COMMUNITY FUND

EC MANAGEMENT LLP

EC MANAGEMENT LLP

PROJECTPROJECTPROJECTPROJECTPROJECTPROJECT

Empower Community Structure

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)

EMPOWER COMMUNITY FUND

EMPOWER COMMUNITY FUND

PROJECT SPV

ROOF ACCESS AGREEMENT

<100% OF CAPITAL REQUIREMENT

ROOF OWNERROOF

OWNER

PROJECT ASSETS

PROJECT ASSETS

ENERGY COMPANIES

ENERGY COMPANIES

FEED IN TARIFF REVENUE

AGREEMENTS

Solar PV for Social HousingPhase 1 – Establishment

SUPPLIER / INSTALLER / OPERATOR

SUPPLIER / INSTALLER / OPERATOR TURNKEY

CONTRACT

EMPOWER COMMUNITY FUND

EMPOWER COMMUNITY FUND

PROJECT SPV

ROOF ACCESS PAYMENT

ROOF OWNERROOF

OWNER

PROJECT ASSETS

PROJECT ASSETS

ENERGY COMPANIES

ENERGY COMPANIES

Solar PV for Social HousingPhase 2 – Operation

SUPPLIER / INSTALLER / OPERATOR

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

LOCAL COMMUNITY VEHICLE

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 COMMUNITYalex.grayson@the-omni-group.net 0789 490 9049jon@joncape.net 0757 756 4092robert.knowles@the-omni-group.net 0774 815 1517

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

Fran LootsDirector of Breathing Space Outdoors

Community Engagement

Four PsUFOs 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

UFOsUn Friendly Objectors

Expect the unexpected!

USPs

NorthHarrisTrust

Elgol Skye

IslandsGoing Green

ComrieFormerArmy 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 BallanceMoffat 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

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?

Anyth

ing

you

thin

k of

– th

ere

are

no ru

les!

Funding

Use a mind map to capture your thoughts

WIND

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

Shelagh Young – ChairSustainable 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.ukOr call 0131 625 1890