Shared Ownership

Peter CapenerChair of Bath & West Community Energy

Community Energy Conference

September 2015

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As a community enterprise, we:

• Develop, finance and procure installation of our own community projects

• Did work with other community enterprises under contract

• Have now set up Mongoose Energy, an independent development coop, to take on and expand this work nationally

Bath & West Community Energy

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BWCE: Over £10 million raised plus debt - 6MW of solar PV commissioned, 5MW financed

Target interest paid for four years & community benefit fund launched

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• Shared Ownership Taskforce -Commitment from the Community Energy Strategy

• Government trying a voluntary approach first

• Taskforce report sets out some principles and suggested approaches:• Split ownership• Joint Venture• Shared revenue

• ‘Split Ownership’ was the preferred option from a community perspective, but in the future….?

Community ‘buy in’ to commercial projects

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9.1MW Split Ownership Project• 5MW community owned by WWCE

via wholly owned CIC subsidiary• BWCE and Mongoose Energy

secured project rights from developer and secured finance and grid sharing agreement

• Capex £10 million: £3m share offer, £2.7m loan, £4.3m commercial partner

• 1 connection split by contract – 2 projects with 1 MPAN

• Same EPC & O&M contractor but separate contracts

• Recently reached financial close, on site, commissioned December 2015

Braydon Manor, Wiltshire

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Need to increase viability for future projects• Significantly curtailed due to FIT

cuts in short to medium term – but in 2 years?

• Need to pursue other options to develop community energy model

• Community buy in to existing renewables projects?

• No tax relief if project already operating - but broadens viable shared ownership model options to include Joint Ventures

• Energy supply – increasing value for generation projects

• Storage – maximising supply at peak times

The Future…..