Gigha gets more power through REIF
Fourth turbine for community-owned wind farm thanks to funding deal
Minister for Energy, Enterprise and Tourism Fergus Ewing MSP has announced the completion of a funding deal that will deliver the Isle of Gigha’s fourth – and largest – wind turbine.
Speaking this morning (22 May) at All-Energy 2013, the UK’s largest renewable energy event, the Minister announced details of the deal, which has been supported by the Renewable Energy Investment Fund (REIF). It will fund the purchase and installation of a fourth turbine for Scotland’s first community-owned, grid-connected windfarm, operated by Gigha Green Power Ltd, a subsidiary of the Isle of Gigha Heritage Trust.
Also supported by the Community and Renewable Energy Scheme (CARES), the Scottish Government’s pre-loan planning scheme delivered by Community Energy Scotland, the project used REIF funding to meet key turbine deposit and bank commitment fees prior to reaching financial close with the Co-operative Bank, the senior lender, early in April.
Delivering his keynote address, Mr Ewing credited the “significant amount of hard work and early investment by the community,” adding: “A £49,000 loan from REIF in December 2012, together with support from CARES, bridged a funding gap, which allowed the community to secure their 330kW wind turbine and finalise the further lending they needed.
“This is a project that will return more than £1m of benefits to the Gigha community over its lifetime; funds which will contribute directly to the major housing improvement programme which the Isle of Gigha Heritage Trust have undertaken. So we’re seeing a project that will deliver tangible, measurable benefits to the people of Gigha, who are very much to be commended for their forward-thinking and innovative planning.”
Willie McSporran MBE, Chairman of GGPL, is delighted with the success of the scheme so far, and says the turbines – known locally as the ‘Dancing Ladies’ – are a key part of the island’s future. “The fortunes of this small island have been totally reversed since the time of the buy-out,” he said. “It’s difficult to overstate the importance of the Dancing Ladies - they have produced the surplus we need to attract further finance, debt and equity to invest in the island’s future.
“The fourth turbine project is crucial to our continued success and without the support of key agencies like REIF and the Co-operative Bank, we simply could not have brought it to fruition.”
A further four REIF deals to three other companies have also been put together since the fund was launched last year. Details remain commercially confidential for the moment, but the Scottish Investment Bank is in no doubt the fund is successfully filling a financial gap for Scotland’s renewable energy industry.
“Our total spend to date is more than £2 million,” said Michelle Kinnaird, Investment Director at the Scottish Investment Bank and head of the REIF team. “These deals include commitments to future funding, taking our total commitments to £4.4m.
“They include both marine sector and two further community-owned renewable deals, and we look forward to announcing more information on those in due course.
“REIF is designed and intended to promote the use of energy from specific renewable sources and drive further investment into key areas of Scotland’s renewables industry. Today’s announcements show it is doing just that.”
The Scottish Investment Bank’s Renewable Energy Investment Fund was launched at the Scottish Low Carbon Investment Conference on 10 October 2012 to promote the use of energy from specific renewable sources and drive further investment into key areas of Scotland’s renewables industry. With £103 million of ring fenced funding available to provide commercially priced loans, equity investments and guarantees, REIF targets projects that will accelerate the growth of the marine renewable energy sector in Scotland, increase community ownership of renewable energy projects in Scotland or support district heating networks that utilise renewable heat technologies. REIF will also consider projects in other areas that support the delivery of energy from a renewable source or are an innovative renewable energy technology.
The Scottish Investment Bank is a division of Scottish Enterprise operating Scotland-wide in partnership with Highlands and Islands Enterprise. It manages a suite of funds including the Scottish Seed Fund; the Scottish Co-investment Fund and the Scottish Venture Fund, which are partly funded by the European Regional Development Fund (ERDF); the Scottish Plastics Loan Fund and the Renewable Energy Investment Fund. SIB is also the cornerstone investor in the privately-managed Scottish Loan Fund and an investor in Rock Spring Venture’s Life Sciences Fund. These support Scotland’s SME funding market to ensure businesses with growth and export potential have adequate access to capital. SIB also provides a team of financial readiness specialists to help companies prepare for new investment and more easily access finance.
The Isle of Gigha was the subject of a community buy-out in 2002. In 2003 the community installed three 225kW Vestas V27 wind turbines, each with an installed capacity of 225 kilowatts, to create Scotland’s first wholly community-owned wind farm. The wind farm provides income to the community to provide local benefits such as housing regeneration and assistance with fuel poverty. More information here.