Community Energy Scotland

Joint Ad-Ventures in Community Energy Development

31 May 2010

The session at All Energy covered a wide range of topics from the opportunities presented when working with a community group to the legal structures required and an overview of models which some communities and commercial partners are taking forward. Speakers from both community groups and commercial partners gave an insight into the issues faced and the benefits to be gained from these types of ventures.

Community Energy Scotland’s Revenue Projects Manager, Rona Mackay, rounded off by addressing some important points that had been raised and also spoke about Community Energy Scotland’s role in supporting and advising communities who are looking at such projects.

Presentations can be found on the Community Energy Scotland website (links below).

Corrimony Energy Ltd– Mike Girvan

“Commercial developer: don’t try to do everything for communities.”

http://www.communityenergyscotland.org.uk/userfiles/file/Presentations/All%20Energy%20Joint%20Venture%20presentations/1%20Mike%20Girvan.pdf

Here We Are – Christina Noble

“Don’t underestimate local knowledge”

http://www.communityenergyscotland.org.uk/userfiles/file/Presentations/All%20Energy%20Joint%20Venture%20presentations/2%20Christina%20Noble.pdf

Carbon Free Developments Ltd – Dominic Farrugia

“Wind farms work best when everyone gets something”

http://www.communityenergyscotland.org.uk/userfiles/file/Presentations/All%20Energy%20Joint%20Venture%20presentations/3%20Dominic%20Farrugia.pdf

Neilston Development Trust – Pauline Gallacher

“There should be a strong community vehicle and strategic community owned plan for the dispersion of revenue.”

http://www.communityenergyscotland.org.uk/userfiles/file/Presentations/All%20Energy%20Joint%20Venture%20presentations/4%20Pauline%20Gallacher.pdf

Burness LLP – Steven Phillips

Legal structures to implement these partnerships http://www.communityenergyscotland.org.uk/userfiles/file/Presentations/All%20Energy%20Joint%20Venture%20presentations/5%20Stephen%20Phillips.pdf

Community Energy Scotland – Rona Mackay

“Communities bring credibility and influence.”

http://www.communityenergyscotland.org.uk/userfiles/file/Presentations/All%20Energy%20Joint%20Venture%20presentations/6%20Rona%20Mackay.pdf

Q&A

There was a question about landowners and possible conflict.
- The panel answered that it was a straightforward leasing arrangement with the landowner. This could be as a % of turnover or at a flat annual rate.
A question was asked about a point Rona had made about communities using public funding in the early stages of development.
- Rona answered to say that if you put in a small amount at risk stage it is worth a lot more than that small amount is worth after planning due to the increase in value of the site once planning is consented.
Someone asked a question about the role of co-operatives in these models.
- Rona Mackay had mentioned that there was opportunity for partnerships between communities and local co-operatives. The panel explained the fundamental difference between the community trust model and co-op model being that the community model is for an inclusive benefit whereas the co-op model is an individual investment benefit.