community share offers
DESCRIPTION
Community Share Offers Sharenergy Co-operative Ways Forward Conference January 2014TRANSCRIPT
Community Share Offers
Ways Forward conference17 January 2014
Jeremy [email protected]
www.sharenergy.coop
Renewable energy co-ops, local ownership and control
e.g.
• Leominster Community Solar, £150k shares, 93 members
• Neen Sollars Community Hydro, £150k in shares, 77 members
• Woolhope Woodheat, £320k in shares, 168 Members
• Many other examples
What are renewable energy co-ops for?(different order of importance for different people)
• green electricity / carbon emissions?
• To put power generation in the hands of the public?
• To generate income for another purpose (community benefit or otherwise)?
• To create an ethical investment opportunity?
Leominster Community Solar
Features of renewable energy coops
• Structure of electricity market makes it difficult for members to “trade”
• How to share profit?
• What is a “fair rate of interest” ?
Factors to consider
• How to factor in risk?
• The need to publish a target interest rate before launch of share offer – difficult to adjust later
• How to engage with enthusiasts and pale greens?
• target interest rate likely to be exceeded = better returns. Is this OK?
More factors
• Different technologies regarded as different level of risk
• If the community fund benefits a popular cause, it will help to compensate for a low interest rate
• Tax relief – this can boost effective rates of return
• Not enough examples to establish what return is just sufficient to raise the amount required –too many variables