27
ARGYLL & BUTE COUNCIL, LOCHGILPHEAD Community Shares Meeting 8 th September 2015 George Dean Director, Islay Energy Trust and Islay Energy Community Benefit Society

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

  • Upload
    others

  • View
    4

  • Download
    0

Embed Size (px)

Citation preview

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 Map

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)

Teresa Morris, Islay Wildscapes

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?

Thank You!

Any Questions?