harlaw hydro presentation
TRANSCRIPT
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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-
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?
Thereisa
nuntapp
edpower
sourcefl
owingrigh
tthrough
our
commun
ity.For
hundreds
of years
theWate
r of Lei
th
provided
the power
forindus
tryinWes
tEdinbur
gh,atone
timethere
wereasm
anyas70
waterwh
eelsusing
thewate
r
beforeit
reachedth
eForth.
Inthe early19
th century
itwasw
aterthat
powered
the
industry
of WestEdin
burgh dr
iving num
erous m
illsin
Balerno,
Currie,Ju
niperGreen
andfurth
erdownst
reamin
Edinburg
h.That's
whereth
e44busservi
cegetsit
sname.
TheHarla
wandTh
reipmuirR
eservoirs
wereconstruc
tedby
theEdin
burgh W
ater Co
mpany,
around 1847,
as
compens
ationrese
rvoirsto
regulate
theflow
ofwater
into
BavelawB
urnandfr
omthere
intotheW
aterofLe
ith.
Themills
mayhav
e closed
butasign
ificantam
ountoft
he
infrastruct
ureisstil
linplace
andhas
beenwait
ingtobe
re-
used.
EnterBV
T.Afters
everalye
arsinthe
preparatio
n,atlast
the
ideaofhy
dropower
generati
ononthe
BavelawB
urnisclos
e
torealisa
tion.The
ideaofgr
eenelect
ricitygen
erationfr
oma
microhyd
roschem
e datesb
acksince
before 20
10,anda
dedicated
teamhav
ebeenw
orkingha
rdsince
thentobr
ing
thedream
toreality.
TheHarla
wHydro
project
aimsto
usethe
outflow
from
HarlawR
eservoirt
odrive a
65kWturbi
ne andf
eedthe
energyin
tothe
national
grid.To
encourag
e small-sc
ale
developm
ents suc
h as this
thegove
rnment e
stablishe
d
FeedinT
ariffs(FiT
),whichs
upplemen
tthebasic
purchas
e
pricefrom
theenerg
ycompanie
s.
BVTknew
almostfro
mthesta
rtthatitw
ouldnot
bepossib
le
forittob
uildand
operate t
he schem
e.Anund
ertakingo
f
thatsize
wasalwa
ys going
toneed
tosecu
re alarge
quantity
of fundin
g beyond
thescop
e of gra
ntsand
ordinarily
available
loans.So
HarlawHy
drowasb
ornin201
2
asaspin
offfromB
VT,which
bythenw
asachar
ity.
HarlawHy
droisan
Industria
landProv
identSoc
iety,anIP
S,
whichwo
uldalway
shavethe
abilityto
raisemon
eythroug
h
HarlawHy
drocomes
ofage
L
TrustN
ew s
keepingy
ouintou
chwithB
alernoV
illageTru
st
http://ww
w.balerno
vt.org.uk
No3
FREEApri
l2013
Furtherd
etailsab
outBVTa
ctivities
andallt
hecurre
ntprojec
tsareav
ailableon
the
BVTweb
site-
http://ww
w.balern
ovt.org.uk
a share i
ssue.And
thatisw
hatHarlaw
Hydrow
illbedoin
g
whenitla
unchesth
eshareis
sueat7.
30pmon9
Aprilatt
he
St Josep
h Centre
. Harlaw
Hydro w
ill raise a
s much
as
possible
ofthe3
13kcost
ofthesc
hemethrou
ghthe sh
are
issue, gr
ants and
donation
s with
anyshor
tfallcom
ing
throughlo
ans.
Sowhati
sBVT'sc
ontinuing
interestin
HarlawH
ydro?BVT
doesnot
controlH
arlawHyd
ro,which
hasa sep
arateBoar
d
andlegal
structure
.Theimpo
rtantthin
gisHarla
wHydro'
s
constituti
on,whic
hisquite
cleartha
t theprofi
t fromit
s
operation
sisassig
nedtoB
VT.Intu
rnBVT a
sachari
tyis
bound to
apply it
s free in
come fo
r the be
nefit of
the
commu
nity.
TheHarlawHy
droenter
priseprob
ablyrepre
sentsthe
single
mostimp
ortantstepev
ertakenb
ythecom
munityin
Balerno
underits
owninitia
tive.The financ
ialmodel
forthe H
arlaw
Hydroop
erationen
visagest
he companys
ellingelec
tricity
intothe
national
grid, an
d current
figuressugg
estan
operating
surplusfo
rHarlaw
Hydroat
approxim
ately58Kpa
whenthe
turbineisf
ullyopera
tional.Itw
illtakeal
ittletimeto
gettothe
stageatw
hichthat
moneyco
uldcome
backinto
thecomm
unitygive
ntheneed
topayb
ackloans
onstartu
p.
Butitis
hopedth
atsome
reinvestm
entinth
e commu
nity
couldstar
tfromase
arlyasthe
secondye
arofoper
ation.
HarlawH
ydroisa
nimmens
elyimpo
rtantdev
elopment
for
Balerno,
andBVT
supports
itwholehe
artedly.Y
oucang
et
lotsmore
informatio
nonHarl
awHydro
andwha
tthisinitia
tive
couldme
anforth
iscommu
nityat w
ww.bale
rnovt.org
.uk/
category
/harlaw3
hydro/.
Harlaw
Hydro's
postcar
dfliers
aysital
l;'Yippe
eforth
e
rain!' R
ainis g
oing to
beeven
more s
ignificant
for
Balerno
inthefut
urethan
ithasev
erbeen
uptono
w.
Tues9Ap
ril:Harlaw
Hydrosh
arelaunc
h,StJose
phCentre
,7.30pm
Sat13A
pril:Farm
ersMarke
t,MainSt
reet,9.00
amto1.0
0pm
Thurs1
8April:W
alledGar
denActio
nGroup
meeting,
Balerno
Commun
ityCentre
7.30pm
Sat20A
pril:Sust
ainBalern
oOpenM
eeting10
.30-12.30
andPotL
uck
Lunch12
.30-1.30(
make/brin
gfoodto
share)at
BalernoC
ommunity
Centre
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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
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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
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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
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Questions
One to one discussion
Application Forms