community based clean energy. the opportunity to set a precedent for effective private sector...
TRANSCRIPT
Community Based Clean Energy
The OpportunityTo set a precedent for effective private sector partnerships, To maximise the local economic development potential from an emerging resource sector,To create value in areas that have not had resource booms, or have dwindling natural resource,To make energy a net gain rather than a net drain on local resources.
Community Based ProjectsInclude the following dimensions:
The community is involved throughout project development,The community is fully informed about all aspects of the project,The community has some degree of ownership, and therefore influence over the direction of the project, and,Derives a financial benefit over the lifetime of the wind project, Transparently and accountably manages their revenues for local social and economic development.
Community Value
Community value is created through:
‘Co-developing’ projects with Just Energy,
Being land owners, users or occupiers,
Being a key influencer in project decision making,
Developing local social backing and understanding for the project,
Building the political profile for the project,
Creating ‘CSR value’ for project partners.
Project StructuresWe seek to achieve:
A mix of fixed income (lease / revenue share) and equity, An equity share for the community to include:
A ‘free’ carry – developers share + recognition of inherent community value,A financed portion – shareholder loans etc,
Typically structured via a community trust or similar.
Community BenefitsProjects provide a meaningful annual income for the community,
In a typical project we would target to include a 10% ‘free’ carry and a further 15% financed share,
Long term management training and skills development to assist in the process of investing community revenues,
Other benefits include (some) jobs and land rental income.
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Ann
ual I
ncom
e to
Com
mun
ity (
EU
R m
)
Income from employment Net income from landlease Income from equity stake
Annual Income to Community for a 20MW Project
Community BenefitsNew source of ongoing income that can be used to:
Support job creation and development of small/medium enterprises,
Improve education and healthcare,
Improve infrastructure and access to basic services,
Job creation and increased spending in the local economy, especially during construction,
Local infrastructure and transportation improvements.
Who are ?
A ‘niche’ developer of community based clean energy enterprises. An independently funded majority South African ‘owned’ section 21 (not for profit) company in registration.A project and close relative of Oxfam Great Britain and Just Energy UK.
How do we workIn partnership with Community Groups (Pre-requisite).Maximising community benefit is our driving goal.Technical delivery through a series of industry leading partnerships.Minimum overheads to maximise community return.Not for profit – cost recovery basis. Additional returns channelled to communities.
Current Enterprises
A small portfolio of ‘small and mid sized’ projects (e.g. 5 – 35 MW) across the Northern, Western and Eastern Cape.
Success Factors!Local, Provincial and National Government support.
Securing PPAs. (private or government).
Appropriate structuring of community trusts.
Appropriate training for community managers and leaders.
Land lease issues.
Legislative issues such as noise issues.
Smaller project size thresholds.
