Harlaw Hydro Presentation

7/28/2019 Harlaw Hydro Presentation

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OBJECTIVE

To raise

313,000

through a share

offering, low

interest loans

and gift aid to

fund a

community

hydro scheme at

HarlawReservoir


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Numerical Summary

source Highland Eco Feasibility Study 2011(funded by Community Energy Scotland)

Size of

system

Units pa

(kwh)

CO2

Saved

Homes CostAnnual

Revenue

65KW 260,000129

tonnes56 UK

average313,000 58,000


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Harlaw Hydro LtdAn Industrial and Provident Society, created for the

Benefit of the Community

Can sell shares to raise capital Is a cooperative society owned by its members

Has the specific purpose of owning and operating amicro-Hydro scheme

Membership of Harlaw Hydro Ltd is open toindividuals, corporate bodies, voluntary organisationsand public sector investors.


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Why do this? To generate green hydro-electricity and feed it into

the Grid.

Commercial viability due to the Feed in Tariff (FiT) Currently the Government will pay 20.21p per kwh on

top of the standard commercial payment of 3.2p per kwh

To provide support for community projects and

activities.


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How can we have income reassurance?

HMG guarantees FiT rates for 20 years from the startof electricity generation

Secure Preliminary Accreditation From 1 December 2012, prospective installations which

fall into the ROO-FIT application pathway (less than5MW) are able to apply for preliminary accreditation.This mechanism provides a tariff guarantee providedgeneration starts within 2 years.

We need to line up 4 ducks to apply for this


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The 4 Rubber Ducks to line upPlanning Permission

Granted October 2012

Extraction License

Granted by SEPA October 2012

Lease agreementHeads of terms approved by CEC March 2013

Grid ConnectionG59 submitted to Scottish Power March 2013


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Community Energy Scotland Provided the grants for the feasibility studies

Provides advice and contacts to organisations

interested in generating green energy Connected the project with David Hollings of Co-

operative and Mutual Solutions Limited


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Education Once the scheme is operational a display explaining

hydro electric generation will be installed in thePentland Regional Park Rangers Centre.

The display will include a screen showing the system atwork and what green energy is being generated.


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Funding will be sought from several sources:- Through shares in Harlaw Hydro Limited

Through donations and Gift Aid to BalernoVillage Trust expressly for this purpose

Through interest-free loans Through a commercial loan to cover the

short fall

Funding the Project


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Funding Breakdown

Shares in Harlaw Hydro IPS 150,000

Donations and Gift Aid 50,000

Interest Free Loans 50,000

Commercial Loan 63,000


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Commercial Loan Options

Co-op and Community Finance

150K @ 6% interest + 1% arrangement fee (includes duediligence)

Renewable Energy Investment Fund via ScottishInvestment Bank

150K @ 8% interest

Geocapita private investment company. Workingwith Scottish Government to make loans forcommunity energy developments.


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The Harlaw Hydro Share Offer

Each share has a nominal value of 50.

The minimum shareholding is 250.

Shares have to remain invested for at least 3 years (plus 3months) after Harlaw Hydro Ltd starts trading (sellingpower).

Shares in Harlaw Hydro Ltd are not transferable in the waythat shares in, say, British Gas are, they are termed as

withdrawable shares - only the issuer, Harlaw Hydro Ltd,can buy them.

Share offer 9th April to 28th June 2013


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Level of Interest to Shareholders

The level of interest will be set by the board ofHarlaw Hydro annually.

The maximum level of interest is limited to 2% over theCo-operative Banks base rate or 5%, whichever is thehigher.

The financial projection assumes 4%


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Base Figures and Assumptions1 Capital Cost (ref. HE Feasibility Study) 313,000

2 Annual Maintenance and Servicing (ref. HE Feasibility Study) 3,452

3 Annual increase in Maintenance and Servicing 4.0%

4 Reserve Fund to cover plant repair and replacement (% of surplus from year 2) 10.0%

5 Cost of Lease (free for first 6 years) % of income less other costs 4.0%

6 IPS Share issue 150,000

7 Commercial Loan with a lump sum repayment annually 163,000

8 Interest rate paid on commercial loan 8.0%

9 Interest rate paid to shareholders 4.0%

10 Approximate income from electricity generated pa (ref. HE Feasibility Study) 58,000

11 RPI used in forecasting income 2.5%

12 Year 1 will only generate 50% of expected annual electricity

13 The Commercial Loan will be repaid over 10 years.


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Financial ProjectionYear Income

Maint. &

Serv.

Share

Interest

Loan

Payments

Cost of

Lease

Oper.

Costs

Oper.

Surplus

Available

to BVT

Capital

Reserve

A B C D E F G H I

B+C+D+E A-F G-H

1 29,000 3,452 0 24,292 0 27,744 1,256 0 1,256

2 59,450 3,590 6,000 24,292 0 33,882 25,568 5,000 20,568

3 60,936 3,734 6,000 24,292 0 34,025 26,911 10,000 16,911

4 62,460 3,883 6,000 24,292 0 34,175 28,285 15,000 13,285

5 64,021 4,038 6,000 24,292 0 34,330 29,691 20,000 9,691

6 65,622 4,200 6,000 24,292 0 34,492 31,130 25,000 6,130

7 67,262 4,368 6,000 24,292 1,304 35,964 31,298 30,000 1,298

8 68,944 4,543 6,000 24,292 1,364 36,199 32,745 30,000 2,745

9 70,667 4,724 6,000 24,292 1,426 36,442 34,225 30,000 4,225

10 72,434 4,913 6,000 24,292 1,489 36,694 35,740 35,000 740

11 74,245 5,110 6,000 0 2,525 13,635 60,610 55,000 5,610

12 76,101 5,314 6,000 0 2,591 13,906 62,195 55,000 7,195

13 78,004 5,527 6,000 0 2,659 14,186 63,818 55,000 8,818

14 79,954 5,748 6,000 0 2,728 14,476 65,478 55,000 10,478

15 81,952 5,978 6,000 0 2,799 14,777 67,176 60,000 7,176


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Why Should I Invest?

Feel Good a social investment

Green Energy

Community Cooperative Society Provide Funds for community projects and activities

through BVT

Financial

4% interest compares favourably with Savings Accountand cash ISAs

50% tax relief through the Seed Enterprise InvestmentScheme


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Seed Enterprise Investment Scheme

The sale of electricity is an eligible activity for SEIS HM Revenue & Customs have provided Advance Assurance that shares

in Harlaw Hydro should qualify Shareholders can apply for income tax relief after Harlaw Hydro is

earning revenue from electricity generation. The rules for SEIS tax relief

require a minimum investment of 500 for a period of over 3 years set an overall limit of 150k for Harlaw Hydro first come first served Harlaw Hydro to be trading for at least 4 months or to have spent 70%

of the money raised

How it Works1. Harlaw Hydro is accepted by HMRC under the under SEIS2. Applications for tax relief are made by the investor to HMRC

NB Harlaw Hydro Limited cannot give guarantees


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SEIS ExampleJenny invests 20,000 in the tax year 2012-13 (6 April

2012 to 5 April 2013) in SEIS qualifying shares.

The SEIS relief available is 10,000 (20,000 at 50%).

Jennys tax liability for the year before SEIS relief is15,000 which she can reduce to 5,000 (15,000 less10,000) as a result of her investment.


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BarrattHenryWilsonHomeshavestartedaprocesswhichmaylead

to a formal application for planning permission for housing

development onGreenBelt land south of CockburnCrescent. The

development proposed by this application is a departure from the

development plan, which is still the Rural West Edinburgh

DevelopmentPlan.RWEDP isatpresentpartofareviewwhichwill

ultimatelyleadtotheproductionofanewLocalDevelopmentPlan.

There is nothing to suggest at this stage that Edinburgh Council

intendanychangetothegreenbeltatBalerno.Howeverdevelopers

wereinvitedbyEdinburghCouncil toindicatewheretheywishedto

see opportunities for development, and Barratt and three other

developers asked in the context of the LDP process, that

developmentbeconsideredinfourgreenbeltareasaroundBalerno,

namelyCockburnCrescent,HarlawGait.Currievale andGlenbrook

Road.Barratt's applicationmeans that thegreenbelt isanissue,

now.ApartfromconcernswithregardtotheerosionoftheGreenBeltany

developmentofthesuggestedsize,ifpermitted,wouldchange

Balernosignificantly.BVTthereforeurgesallBalernoresidentstotakeanactiveinterestin

whatisproposed.TherewillbeanexhibiitionbythedeveloperattheCommunity

Centrebetween4.00pmand8.00pmon28February.

GreenBelt-pressingquestions

Following on the success of Balerno Christmas and the

ChristmasFarmersMarkettheVillageTrustarethinkingabout

themesfortheregularmonthlymarket,andweareinterested

inwhatyouthink.WithplansforTattieDayforlateFebru

arydevelopingfastand

hopesforabetterfruitharvestthisyeartoallowforAppleDay

tobe repeated,we are thinking that the SeptemberMarket

mightbeaHarvestMarket.Before thenwewouldlikeMarch

tobean(early)EasterMarketoraneventfortheMadMarch

Hare, while April might mark the beginning of Spring. May

wouldseeaMayDaymarketandweareeventhinkingabout

a Maypole! June or July would be a Summer Market or

possiblyevenaGardenParty,withAugustmarkingLammas.

October is our Music Festival Market and wemay possibly

evenmanageaMartinmasMarketwithlanternsandlightsfor

November. December would we hope see an even bigger

BalernoChristmasandthatwouldtakeus roundtoFebruary

2014 when wemight even be able to celebrate Valentine's

Day or Candlemas. Just ideas at present but then that's

wheremostthingsstartoff.Whatdoyouthink?

2013 will mark the eighth birthday of the Balerno Farmers

Market.Therearen'tmany FarmersMarketswhichareolder

than ours. It is 'Our Community Market', and Balerno High

School Young Enterprise Group are helping to embed that

message through designing and selling shopping bags

branded with the BVT Logo. They will be on sale at the

FebruaryMarketandat futuremarkets toowehope.BVT is

keentosupportlocalenterprise.It isoneofthesourcesfrom

which regenerationofourvillagewillflow,andwewishBHS

studentswellwiththisventure.

GreatfutureemergingforFarmersMarket

23rdFebruary-makeitadate

SERVINGTHECOMMUNITY!homemadeapplepunchfromtheChair!

Springisonthewayandwhatbetterwaytocelebratethanby

bringing thefamilyalong toBVT:SustainBalernos3rdTattie

dayon23rdFebruary10-2pm. Thisyearwillfeaturealltheold

favouritesseedtatties,onionsetsetcandanewstallcourtesy

ofHarmenySchoolofferingseedstoswoportakeawayfora

smalldonation. Everyonecantakepartbuildingbird feeders

and creating tatties indisguise, listening to TattieTalesand

sampling delicious soups and home baking. If youd like to

helpoutwiththiseventorwantmoreinformationjustemail-

[email protected].

Congratulations toBalernoVillageScreenonasell-out start

to the local cinema project. It's not partof BVTand arewe

jealous of the idea? No! It's all part of building a great

community here. Who knows we may even have the stars

treading the redcarpetat theBalernoScreenAwardssome

timesoon.WatchoutforSkyfallnext!

TrustNewskeepingyouintouchwithBalernoVillageTrust

http://www.balernovt.org.ukNo2

FREEFebruary2013

FurtherdetailsaboutBVTactivitiesandallthecurrentprojects

areavailableontheBVTwebsite-http://www.balernovt.org.uk

http://balernovillagescreen.co

What is BVT?

How does it work?

What has it done?

What is it planning to do?

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25/28

What is BVT? Company limited by guarantee

Registered charity

Farmers Market, Sustain Balerno (Tattie day, AppleDay, Community Orchard, Bee Hives etc etc etc),

Ravelrig Walled Garden, Hydro . What does it aim to do?

Sustainability

Community development

Education & health

To fund other local people to do the same

How does it work? Board of Directors and sub-groups all made up of

volunteers

The verdict on the December Balerno

Farmers' Market, held on 8th December?

It really was the best yet !

The Market was part of the highly successful 'Balerno

Christmas'. It attracted record crowds and included some 20stalls: 13 regular traders like Falko Bakery, Simon's Pies,

Gordon's Arran Cheese and Monarch Venison, alongside 9local community stalls, including Youth Vision and Balerno

High School Young Enterprise. This mixture of commercialtraders and local community involvement is one of the

features of Balerno Farmers' Market which appeals both to

customers and to the commercial traders.

The stallholders dressed up their stalls for Christmas andGordon Macdonald MSP and Cllr Bill Henderson undertook

the diffiult task of selecting the winner of the Best PresentedStall competition: Falko Bakery, with Gordon's Arran Cheeses

the runner-up and Youth Vision getting third place.

Congratulations to them all!

A Christmas Hamper Prize Draw, made up of produce kindlydonated by the stallholders, raised over 230 for Syria Aid

and the Cyrenians; the Trust is immensely grateful to all whocontributed. The Market also featured a number of special

events, including virtually non-stop music between 10.00amand 1.00pm, provided by the Dean Park Primary Choir

followed by the Choir of Balerno Parish Church, the Balerno

High School Wind Group and buskers from the ExplorerScout Group.

The 'Balerno Christmas' weekend also included the 3rd

Christmas Tree Festival and the Concert for Christmas withthe Broxburn and Livingston Brass Band, with the Mill cafe

keeping us warmly refreshed. BVT are now looking at waysin which the success of that weekend can be repeated

throughout the year.

Across t he country Farmers' Markets are struggling, but

BVT hope that the Balerno Market can buck this trend,becoming even stronger than it is at present. Ideas being

considered include theming markets to include, forexample, an Easter Market or a Harvest Market; perhaps

even a Honey Market, once the Sustain Balerno bee-hiveshave been brought into action, hopefully in the later spring

of this year. If you have ideas then please let BVT know.

BVT does however need more help with the Farmers'

Market and if you would like to get involved then pleasecontact Mike Martin on 0131 449 4545.

The Balerno Farmers' Market wishes all its customers, stall

holders and friends a very Happy Christmas and New Year,and looks forward to seeing everyone at our next Market on

Saturday 9 February.

The Best Market Yet!

Trust New skeeping you in touch with Baler no Village Trust

Trust News is the newsletter of the Balerno Village Trust and

aims to provide up to date information on all the Trust's

activities, and also the activities of the Trust's sister

organisation Harlaw Hydro.

Balerno Farmers' Market - every month except January on the

second Saturday, 9.00am to 1.00pm; Balerno Main Street

December 2012No 1

photo byIan Gidney

Cllr Ricky Henderson presents the Farmers' Market

Chris tmas Hamper to lucky winner Andr ew Hamle tt.

FREE

RegisterednumberSC369378

BalernoVillageTrustScottishCharityNumberisSC043318

Registeredoffice-BalernoParishChurchOffice, 2MainStreet, BalernoEH147EH

SustainBalernotidyingupM

ainStreet

RavelrigWalledGardenlookingnorth

BalernoChristm

as2012

BalernoVillageTrust

towardsasustainablecommunity

www.balernovt.org.uk

AnnualReport2012/13


26/28

Whats it done and whats it doing? Farmers Market, Founding partner in Balerno Music

Festival, Sustain Balerno (Tattie day, Apple Day,

Community Orchard, Bee Hives etc etc etc), Ravelrig

Walled Garden, Hydro, partner in Balerno Christmas

.

What does it aim to do? Develop and deliver new ideas and projects

Help other groups to develop ideas and projects

which are consistent with BVTs charitable purposes

How will it do that all that? Income from projects

Grants to community bodies via a broad based grants

committee


27/28

Interim Board Lynn Molleson - Director

Many years of experience in the voluntary sector Specialises in developing new projects and community consultation Strong interest in renewable energy and energy efficiency.

Ian Hynd Director Experienced Industrial designer

Company director Chairman of Balerno Community Council and a director of Balerno Village Trust

Simon Dormer Director Chartered surveyor with over 15 years experience working in the commercial property industry. Knowledgeable in planning and property-related development matters Broad experience in raising finance in the commercial sector Director and vice-chairman of Balerno Village Trust

Martin Petty - Company Secretary Retired IT consultant Successful track record in preparing business cases and delivering projects Director and Treasurer of the Balerno Village Trust Treasurer of the Balerno Music Festival


28/28

Questions

One to one discussion

Application Forms

Harlaw Hydro Presentation

Documents

Transcript of Harlaw Hydro Presentation