Power to the people
Dave March reports on the principles behind community ownership of renewable power and the benefits of its integration
In arguing the case for building a wind farm, the benefits for our planet are patently clear, providing an alternative solution to fossil fuel power generation, and eliminating the carbon output factor. Although the UK is exposed to the best wind power resource in Europe, we struggle in bringing renewable energy initiatives to fruition. Looking to countries such as Germany and Denmark, which have embraced the concept of community ownership in renewable projects, the level of power harnessed provides an excellent example of what can be achieved.
One UK company leading the way in providing the specialist skills and management to the industry is Energy4All. This green power developer was conceived in 2002, to extend the highly successful asset-ownership model pioneered by Baywind. The trailblazer for UK community ownership of renewable energy, Baywind Co-op has been producing green electricity and returning revenue to its investors since 1997. Energy4All has gone on to create a further four co-operatives, all of which collectively own the company, running on a not-for-profit basis as a social enterprise. With over 5,000 members, Energy4All has a further two projects underway for 2008. “If renewable energy is ever to become mainstream in the UK, it is imperative that ordinary people are involved in the process, and the best way to achieve this is to give them a direct stake in renewable energy generation. This has been proved conclusively in Germany and Denmark, and Energy4All has established a remarkable track record of success in attempts to develop the same for the UK,” comments Andrew King, chair of Energy4All.
A key tool in the identification of new wind power opportunities has recently been developed. The energysteps website (www.energysteps.coop) provides clear and practical information on the process of building wind farms and projects. Registering with this website will provide established methods to assess the viability of potential projects. Once a wind project looks feasible, Energy4All can actively facilitate the progress of the project, with the integration of community ownership.
With growing national awareness in green power, Energy4All is successfully engaging with communities across the UK - gaining interest and, in turn, support for wind farms. This is not simply a discourse with the community; it is a true partnership. The company embraces the concept of social empowerment and delivers community ownership of renewable energy schemes, by applying its own proven cooperative model.
The cooperative model that Energy4All operates is designed to benefit all parties involved, from members of the community to the landowner, the developer, agencies and local authorities. Operating under co-operative principles, it raises the funds for the market value purchase of wind turbines by launching public share offers. People are able to own a stake in their own greener future, knowing that they can be a part of the economic equation too. Those that purchase shares become members of the cooperative. As such, they are each entitled to an equal say in how the cooperative is run, regardless of the size of investment, which can range between £250 and £20,000. An attractive rate of annual interest is returned to members (following approval at the AGM) and the share capital is returned at the end of the project lifetime, which is usually 25 years.
Benefits to...
...the developer
Potential benefits at the planning application stage;
A proven, flexible and financially robust community ownership model;
Professional business management by Energy4All; and
The benefits from close community involvement and invaluable public relations spin-offs - this is a long-term relationship for long-term projects
...community groups
Full support service for community ownership;
Project planning and financial modelling;
Professional project delivery;
Empowerment of the local community; and
Long-term economic, social and environmental benefits
...local authorities
Energy4All’s skills and experience, to maximise local and regional benefits from renewables;
Advantageous community benefit agreements;
Financial modelling and specialist sector advice;
Individual project planning and implementation; and
Comprehensive programmes to deliver local plans for the generation and use of renewables across whole communities
Energy4All has proven that it is possible to forge ahead, despite the barriers the company continues to face. It is finding solutions for the risk capital and technical issues relating to the National Grid. Crucial obstacles at present are the lack of grant funding to cover the risk stages of community based schemes, the lack of a coherent and effective Government policy to promote community ownership and the crippling planning delays that still occur routinely.
Ultimately, the integration of community ownership into a wind project can prove to be an important factor in the planning process and Energy4All is able to provide the know-how for its inclusion.
Energy4all is actively looking for opportunities to expand this model for the benefit of the wider community. Its continuing support for existing projects remains at the company’s core, but new projects and opportunities are being actively sought.
The turbines owned by Energy4All cooperatives have a capacity calculated to be over 16MW of renewable power and growing steadily. The growth of this enterprise continues to contribute to the Government’s tough targets on tackling climate change through green energy.
This groundbreaking concept for green power social enterprise is just about to enter a new phase in Scotland, with the launch of Energy4All Scotland. Led by development manager Mark Jennison, the new division is an exciting prospect for expansion in a key renewables arena. The company is announcing this new venture at All Energy ‘08, where it is exhibiting on stand A5308, and Mark Jennison will also be presenting Energy4All’s vision for the future of community renewables in Scotland at one of the public seminars.
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