Community Energy Opportunities

Jon BellBusiness Development ManagerMosscliff Environmental Ltd

Presentation Overview

• Who we are?

• What is Community Energy?

• Early Stage considerations

• Conclusions

Who we are?

• Mosscliff Environmental Ltd are a UK market leader in the supply and installation of renewable energy systems. We provide real engineering expertise, quality equipment and also offer a range of consultancy services. Our focus has always been on meeting the longer term need for viable and holistic renewable energy solutions.

Some achievements …

• Established over 10 years

• 7 offices across the UK

• Multiple technologies - core Wind, PV,

Biomass

• Closing in on development and

installation of 50MW of renewable

energy capacity in UK

• Community Financing of over £15M of

renewable energy projects in UK -

Turbines and Solar PV

What is Community Energy?

• Can be defined by:– Cooperative or Collective

• Generation• Ownership• Benefit • Management• Purchase

• Community Energy Strategy definition:‘Community energy covers aspects

of collective action to reduce, purchase, manage and generate energy’.

Community Energy Solutions

• Request to consider Community Energy options

• In particular solutions to provide an off-grid closed

distribution system.– No supply, incoming or export

– Provide Heat and Electricity needs for minimum 1,100 homes

– Provide Heat and Electricity for commercial units

• Consider Sudbury development off-grid closed distribution system - one approach to solving the issue.

Early Stage Considerations

Needs– Identifying energy needs for a given community?

– How is need split e.g. demand across the year?

Technology + constraints– Generation

– Supply

– Distribution

Plant – Ownership

– Operation + Management

Finance– Feasibility

– Construction

Benefit – Revenue and benefit split

o Investorso Beneficiaries

Needs Assessment

• Needs– 1,100 homes– averaged at 3 beds

• estimated energy demands per home per annum– 10,000 kWh (Thermal) – heat and

water– 4,000kWh (Electrical) – all

– How is need split e.g. demand across the year?

– Heat 70:30 (Winter / Summer)– Electrical 70:30 (Winter / Summer)

– Total Output Requirements per annum (1,100 homes)

• 11,000,000 kWh (Thermal)• 4,400,000kWh (Electrical)

Technology constraints

• SUPPLY to domestic properties.• Supply to 50 homes – Ofgem Legal requirements

(a) the distribution system is not used for the purpose of supplying electricity to household customers, or is used to supply fewer than 50 household

customers who - (i) are employees of, or work for or otherwise render

services to, the distribution exemption holder or a person related to the distribution exemption holder; and

(ii) take a supply of electricity that is wholly or mainly from a generating station embedded in the distribution system;

– 350kWp CHP (approx.) = 500,000kWh (10,000 x 50

homes)

– 2:1 electricity production = 250,000kWh

– Other renewable back up?

• E.g. Solar Electrical / thermal

– Other generator back up?

Plant

Plant

– Ownership

o Community Shares

o Generation ‘sub-stations’ owned by each set of 50

collective properties

– Operation + Management

o Tendered contracts – IDNO providers, licenceso Timeframe agreements

o Warranty and replacement plant

Finance

Feasibility

– Early stage potential for Grantso Technical

o Legal

o Financial

•  

Construction

– Loan / Equity Finance for build

– SPV Ownership for each ‘sub-station’ or generator

– Share sales at property purchase•  

Sale

– KEY property sale and individual mortgage company

assessment?

Conclusions

• Community Energy will increasingly become a reality in the UK

• Legally closed distribution system could be achieved• Technically closed distribution systems could be

achieved• Financial model will likely be determining factor

There are no functioning closed distribution systems in the UK?

Are there other options?