Community Share Offers

Ways Forward conference17 January 2014

Jeremy Thorpjeremy@sharenergy.coop

www.sharenergy.coop

Renewable energy co-ops, local ownership and control

e.g.

• Leominster Community Solar, £150k shares, 93 members

• Neen Sollars Community Hydro, £150k in shares, 77 members

• Woolhope Woodheat, £320k in shares, 168 Members

• Many other examples

What are renewable energy co-ops for?(different order of importance for different people)

• green electricity / carbon emissions?

• To put power generation in the hands of the public?

• To generate income for another purpose (community benefit or otherwise)?

• To create an ethical investment opportunity?

Leominster Community Solar

Features of renewable energy coops

• Structure of electricity market makes it difficult for members to “trade”

• How to share profit?

• What is a “fair rate of interest” ?

Factors to consider

• How to factor in risk?

• The need to publish a target interest rate before launch of share offer – difficult to adjust later

• How to engage with enthusiasts and pale greens?

• target interest rate likely to be exceeded = better returns. Is this OK?

More factors

• Different technologies regarded as different level of risk

• If the community fund benefits a popular cause, it will help to compensate for a low interest rate

• Tax relief – this can boost effective rates of return

• Not enough examples to establish what return is just sufficient to raise the amount required –too many variables