DONICH HYDRO & LOCHGOIL ENERGY LTD
At long last after many ups and downs, disappointments and triumphs, the community, (through Lochgoil Energy Ltd (LEL)), now owns 20% of the hydro scheme being built at the Donich. The Scottish Government’s Renewable Energy Investment Fund (REIF) has made a loan direct to Broadlands Energy (Donich) Ltd on our behalf and assigned the shares, income and dividends to LEL.
This means that whilst REIF carry the risk of the loan, the community will get the benefit of the investment both during and after the loan period.
The scheme has an expected lifetime of 40 years by which time the community will have benefited to the tune of 1.26m pounds.
Annually the community will receive income varying from around ten thousand pounds per year, rising to nearly thirty three thousand pounds at year 15, (the end of the loan period).
Following year 15 this annual income rises dramatically to nearly seventy nine thousand pounds in year 16 and onward to one hundred and eight thousand pounds in year 20.
Following this the income declines in line with the debt structuring of the financing, but still culminating in year 40 with a cumulative income of 1.26m pounds.
The above figures are based on the financial modeling on which Broadlands Energy (Donich) Ltd have based their own investment in the scheme, as well as REIF and our own financial advisors planning.
It should however be noted to achieve this income the scheme must produce electricity by 13th September this year to benefit from the Feed In Tariff (FIT) for which it has prior accreditation. Failure to achieve this would have significant negative consequences for the income to the community outlined above – so we should all hope for a summer in which contractors can move ahead swiftly. After that of course we all have to hope for forty years of significant rain!
The income received by LEL will, (after payment of outstanding tax and any other obligations), will be paid to the Lochgoil Development Trust for spend in and on behalf of the community.
LEL and the Trust would like to record our thanks to REIF, Scottish Enterprise and Local Energy Scotland for their work over many years and their great help and imagination in making this all possible.
I personally would like to record my appreciation for the trust shown by the community to myself, Elizabeth Bain and in the early years Alex Filshie, during times when it was not possible to tread an easy path and balance the aspirations of everyone. I hope though that the financial sustainability this investment gives will now benefit everyone in the community.
Submitted by Pete Clarke