Introduction

The UK’s first community owned and developed wind turbine was in the Dulas Valley in Wales.

Objectives and target audience

Ann association was created to progress the idea.  This was aimed to encourage the idea of wind energy development for the local people of Pant pert hog and that are subject to a significant degree of local control.

Financial Resources and Partners involved

The unique characteristic of the Dulas Valley project is not only the community ownership of the wind turbine, but due to the fact that the project was totally community-led.  Public meetings from the outset which allowed an interested community to lead the configuration of the Dulas Valley Community Wind Partnership (DVCWP).   This occurred during the year of December 1999.  The opinions raised at the first public meeting ranged from strongly supportive to very cautious, but most opinions were for the implementation of wind power and the profits that would be gained from it.  CAT’s enthusiasm and involvement in the project was extremely advantageous.  The reasons being that a provided secured recipient would be available for the generated electricity, demonstration purposes and educational benefits.

With regards to capital costs the project calculated to £81,000.  A BDCR was applied for and was successfully granted from the European Regional Development Fund (ERDF).  The grant achieved was calculated at £19,500 through ecodyfi.  A further £10,00 from the Scottish Power Green Energy Trust and an additional £17,500 grant from the Energy Saving Trust (EST).  The outstanding capital came as equity from community members, the EST (whose dividends goes to a community energy conservation fund) and the Baywind Energy Co-operative.  The 57 members belonging to the BDCR, provided over £23,000 in the project.

Process

The DVCMP was open to all community members and specific sub groups were created to allow for delegation of specific project management tasks.  These included tasks regarding technical and financial research and the EIA (Environmental Impact Assessment).  The DVCMP model is based on community members taking shares in an industrial and Provident society.  The members will then benefit from the sale of electricity due to the dividends with net income returned to the community via dividend payments over a 15-year period (the expected lifespan of the turbine).

In order to be able to register as an Industrial and Provident Society, a legal identity with limited liability was required.  Therefore Bro Dyfi Community Renewables Ltd (BDCR) was created.  BDCR now had the main responsibility for managing the landowner agreements.

The share offer was also issued to the members of the Renewable Energy Investment Club (REIC).  REIC was established by Dulas Ltd and Groundwork Bridgend during an EC-funded project to facilitate the purchase of shares in renewable energy projects.  The agreement of Baywind Energy Co-operative to underwrite the offer, and therefore purchase any unsold shares, provided confidence for securing sharing.  For this event, the shares for the project were over-subscribed and had to be limited to a maximum of £1000 each.

The advantage of the scheme going ahead is that CAT have agreed to buy all the electricity for the lifetime for the turbine.

Results

The wind turbine project has resulted in several benefits for the local community including economic benefits for the Dulas and Dyfi valleys:-

• The work carried out has been by the members of the local community;
• The partnership placed the construction contract with a local company (CAT);
• Some of the people who participated in the project agreed for some or all of their work on planning and finance to be paid in shares in the project;
• £55,000 (70% of the project capital) was brought into the local economy;
• Administration, operation and maintenance contracts have been placed locally;
• All the revenue that will be produced from the project will be kept within the local economy;
• CAT will benefit from the renewable energy produced from the wind turbine;
• The wind turbine will be an example of how a wind turbine works and is also an educational resource;
• The project is a community-owned scheme where each shareholder has one voting share;
• One third of annual profit is donated to the community energy fund for energy efficiency measures.

Critical Success Factors / Challenges

The critical success factors which made this project successful are:-
This is the first community owned and developed wind turbine which was switched on in the Dulas Valley in Wales.  This is a good example of public engagement within the local community.  Due to this being a public led project, meeting decisions regarding the finance and the development of the project.
Five financial backers were involved in supporting this project.  These being:-

• European Regional Development Fund (ERDF;
• Ecodyfi;
• Scottish Power Green Energy Trust;
• Energy Saving Trust (EST);
• Baywind Energy Co-operative.

A total of £81,000 was amounted towards project capital which has secured the implementation and development of the project including a number of backers to guarantee the project.