Resilient Energy Mounteneys Renewables Limited

Financial Performance

Please note that this information is no longer updated and is for reference purposes only.

The Society aims to raise up to £2,754,000 to prepare for the construction and subsequently install a single 500kW wind turbine at Mounteney’s Farm and a further single 500kW wind turbine at Cherry Rock Farm.

Refer to the risk page of the profile for more details.

How the finance will be used

The preliminary cost allocation:

  • Initial turbine deposit - £60,000
  • Grid connection - £40,000
  • Share offer costs - £50,000

Total: £150,000 - This amount has been raised in the Phase 1 share offer

The overall costs of the Project break down (including the preliminary costs) as follows:

  • Purchase a 500kW wind turbine with transport and craneage - £820,000
  • Construction - £161,000
  • Grid Connection - £48,000
  • Transformer and balance of plant - £131,000
  • Project management - £32,000
  • REM/RECR repayment of incurred costs - £80,000
  • Share offer costs - £74,000
  • Contingency - £31,000

Total per turbine: £1,377,000

Project Total (For both Turbines): £2,754,000

Income

  • The main source of income to the project will be from the FiT, this is expected to be paid at a rate of 12.05p/kWh.
  • An independent wind energy yield assessment by Digital Engineering Limited predicts that the Project will deliver 2,850 MW hours of electricity per annum.
  • Electricity will also be sold under a PPA initially at a rate of 5.3p kWh.
  • The FiT and export rates will be adjusted on the 1st of April each year by the rate of inflation in the previous calendar year.

Applications to renew the preaccreditations for the two turbine sites were submitted in early October 2015. We expect to receive formal notification of pre-accreditation renewal by mid-November 2015. On the 18th of November REMR obtained pre-accreditation for a FiT generation rate of 12.05p/kWh provided REMS commissions by 7th March 2017 and connects to the grid.

Operational costs

The operational and maintenance costs of managing the wind turbine assets and business of the Society as a % of gross turnover are estimated as shown below, along with an indication of the Society surplus anticipated. The aggregate estimated cost of these items per annum is approximately £196,000.

Operation and management cost

The Resilience Centre Ltd has been appointed by the Board to administer the Society and to manage the Project on a day to day basis.

The Resilience Centre will charge an annual fee of 1.9% of the monies raised to administer the Society and an annual technical and commercial fee of 7.5% of turnover to administer operations and maximise social benefit. All fees are excluding VAT.

Expenses

The project will be managed by The Resilience Centre Ltd and will be retained on a ten year rolling contract to administer the Society.  The project manager will take full technical and commercial running of the project including but not limited to:

  • Monitor the day-to-day performance of the Wind Turbine as well as the O&M contractor and the turbine manufacturer and recommend changes to optimise performance as necessary.
  • Ensure maintenance work is undertaken expediently and any repairs are organised efficiently to minimise down-time and energy generation.
  • Administer the Community Fund and chair meetings of the Community Panel (chair has no voting rights) to ensure everyone has a fair and equitable hearing.
  • Administer the strategic fund and work to maximise the long-term legacy of the project by working with Dean Community Energy Group and others to ensure greatest social impact locally on energy use, costs and benefits.

Forecast cash return

Based on the business plan REMR intends to pay members a return of up to 7.5% on their capital invested each year and return capital at the end of the 20 years.

The table below outlines the cash flow forecast on £1,000 invested. All figures are in £'s.

Year 1 2 3 4 5 6-10 11-15 16-21 Total
Share Interest Paid 0 59 77 80 80 340 240 156 1032
Capital Repaid 0 0 0 0 50 250 250 450 1000
Total 300 59 77 80 130 590 490 606 2332
% return** 30% 5.9% 7.7% 8.0% 8.0% 8.0% 8.0% 8.0%

 Assumed no capital repayment in years 1-4. 

*Predicted % Interest payments will be reduced in early years based on current conservative estimate of cashflow within Society

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