Helensburgh Community Development TrustOur future in our own hands

Ian Fraser 15 August 2014

Wind power funds communities

Neilston – town regenerationGigha ‘Dancing Ladies’ -

encourage incoming businesses

Fintry – free insulation & woodfuel

Ardrishaig – swimming pool, pipe band, pensioners group

Argyll and Bute - A Good Place to Live, Work, and Play?

Feedback from A&BC Community Planning Partnership consultations 2013:

Helensburgh & Lomond area concerns:• facilities for young people in 13-18 age group• enabling and supporting businesses (especially start-ups)• better quality and affordable housing• more and better family leisure and entertainment facilities• difficulties accessing further and higher education • lack of local accident and emergency service • seafront car park area needing redevelopment

Three equal partners in a Joint Venture

Community support

Land

Expertise, Equity funding

Heads of Terms agreement signed August 2013

Structuring the community’s share

Helensburgh Community Development Trust- common good fund- registered charity since 2011- membership free to all residents of

Helensburgh, Rhu & Shandon- trustees elected by members

OWNS:Helensburgh Renewables

- social enterprise company- directors appointed by HCDT- all income gift aided to HCDT

IS A PARTNER IN:Helensburgh Community Wind Farm- 3-way joint venture - directors appointed by each partner

Technical details

5 x 800 kW turbines

Enercon E53• 86m ground to tip height• high reliability since 2006• Class III - suits lower wind speeds• gearbox-less design

Manufacturer servicing• 97% warranted availability • warranty for 15 years

Connects to grid at Woodend • 1.2 km from nearest house

The right turbine for the location

World’s 4th largest wind turbine manufacturer• Family firm now owned by a foundation• 30 years in the business• Market leader in Germany since 1990s

22,000 turbines installed worldwide• Average availability 98.5%+• ‘EPK’ service contract for inspection,

maintenance and repair• 15 year warranty

Good track record as deployed by Green Cat• Depends on selecting the correct turbine for the site

Financial overview

Capital cost estimate £6.7 million• largely loan funded – no public money involved

Each partner takes one-third of profits• HR receives a minimum of £40,000 even in poor wind years

HR expected average income• Years 1-5: £80-90,000 per year• Years 6-10: £100-110,000 per year• Years 11-15: £170-190,000 per year• Years 16-20: £400-450,000 per year

Revenues – key figures

Re-estimated in light of Cove wind speed data• conservative estimate of 6.7 m/s average wind speed • leads to a turbine capacity factor of 32%

Performance of other Green Cat wind farms with similar turbines• House o’Hill: 37% capacity factor over 4 years• Arkhill: 38% capacity factor in first year

Sold via a 3-year rolling Purchase Price Agreement• Selling price based on indicative PPA offer

Costs– key figures

Over 80% of annual costs are for financing capital expenditure• capital costs well defined by design studies and quotes

Financing plan revised following Co-op Bank withdrawal• new specialist lenders in market: Close Bros, Santander • 15 year loan for 80% – indicative offer received• 12 year secondary loan for 16% of capital expenditure• remaining 4% is funded by the developer up front

Operating costs include 15 year manufacturer’s maintenance warranty

Reimbursements to partners after commissioning:• HR - £40,000 a year community benefit• Green Cat - annual fee for running operation• Luss – annual rent

HCDT consultations

Feedback

Consultation carried out through 2013• 11 exhibition events (Churchill, Pipe Band,

…• 4 talks (Probus, Grey matters..)• ~300 people took active interest

• 66 feedback forms returned• 64% supportive or very supportive• small number very opposed, but very

vocal• most frequent response:

‘ I can’t see what the big fuss is about’