The involvement of communities in the ownership and operation of renewable energy projects developed by commercial organisations is set to grow.
E4A has significant experience of working with commercial developers on shared-ownership schemes and we are keen to use this experience to support the development of new projects.
E4A has two distinct models of co-operative involvement in wind or solar projects that are being developed by partner developers. These models are intended to enable members of the local community and a wider community of interest to become involved by investing in a renewable energy project, taking an ownership stake and receiving financial benefit from the operating wind or solar farm.
The two options are:
Co-operative Asset Ownership
Under this model the co-operative purchases identifiable assets, for example one or more wind turbines or a defined section of a solar farm, and is assigned appropriate shared rights over other assets and agreements, for example cabling, sub-station, connection agreement, turbine warranties, such that the wind turbines owned by the co-op can be operated independently of the rest of the wind farm (thus permitting bank finance for the purchase). Under normal circumstances, the wind or solar farm is operated as a single project by the main owner/operator with the co-operative paying its proportion of operating costs and receiving the appropriate share of the income.
Co-operative Revenue Share
Under this model the co-operative is granted a stake in the developer’s project in exchange for a payment to the developer. The size of the stake is determined by a series of key parameters which enable the financial arrangements to provide members with the opportunity of earning a reasonable average return on their investment. The overall return will depend on the performance of the wind and solar farm.
Variations on or alternatives to these basic options can be considered and agreed as each project is developed. For further information and an initial discussion please contact us.