Update on our Charity Bank loan application

Tresoc investors will know from our Prospectus that the Society is looking to raise £500,000 to £1,500,000 to fund a portfolio of hydro and solar projects. To date we have raised some £200,550, which is no small sum, but the income from this level of investment is not enough to cover our annual operating costs (admin, insurance, accountancy etc) even without paying directors.  However, we are in discussions with Charity Bank with regards to a loan facility that might allow us to fund our projects and establish Tresoc as a viable business. We are very pleased to be working with this specialist lender whose aims fit well with our own, and who offer flexible loans and support to social enterprises. Please see Charity Bank’s website for more details.

We have met the Bank’s representative and on 29th September submitted our application for a loan that we could draw down, as and when needed. The application process is expected to take 6 to 8 weeks. During this process the bank will be determining whether, and on what terms, a loan may be made to us, and the Board will look in detail at our finance projections to ensure that any loan terms we agree fit with our aims to be a sustainable, growing organisation, paying a return on our members’ investments.

Meanwhile, the Board, in consultation with members, has decided to keep the share offer open on the terms outlined in the Prospectus, until such time as we have a decision on the Charity Bank loan. If we are successful in our application, the full details of the implications of the loan, and what it will allow us to achieve, will then be communicated with our members.

All monies received through this share offer are held in a dedicated deposit account and will be repaid in full if we do not raise sufficient capital to establish Tresoc as a going concern. There is still time for old and new members to invest in Tresoc and now is the time to show your support for renewable energy in community ownership.

Please call us 01803 867431 or email admin@tresoc.co.uk if you would like to discuss this or any other aspect of Tresoc.

TRESOC Spring Share Issue – note from MD, Ian Bright

We’re kicking off the discussion with great news about our 1 MW for Totnes & District Share Issue.  Those of you who came to the AGM in December will know that following refusal of the Totnes Community Wind Farm planning application last year (see previous blog entry) we’ve been extra busy with other projects. All this hard work is now paying off in the form of new consented solar pv and hydro power projects.  Specifically, we have reached agreement with South Devon Rural Housing Association to install solar panels on all of their suitable properties.  The Survey work is nearly complete and over 100 households will soon enjoy a source of free electricity, helping out some of those most at risk of fuel poverty and supporting growth in the local economy through our project partnership with BECO Solar.  TRESOC will benefit from the Feed in Tariff income, enabling payment of dividends to our members.  
We’ve also secured agreement with Dart Renewables for a £500,000 community investment in the hydro project at Totnes Weir, and more at other hydro power sites on the Rivers Teign and Dart.  With extra solar schemes in the pipeline this adds up to a TRESOC investment package in consented local renewable energy projects with a combined value of more than £1.5 million.  
 
With the Government’s Community Energy Strategy and other measures supporting growth in community renewables this is a huge opportunity for local people to earn a healthy income from large and small investments in local renewable energy installations.  It will also provide TRESOC with working capital to develop more projects in solar, hydro and various forms of biomass – and who knows – maybe another wind project one day!  
 
We’re finishing off the detailed legal agreements necessary to realise these fantastic opportunities in our Share Issue, scheduled for April.  Meanwhile, we’ll keep you informed of progress and look forward to hearing more from our members.
Many thanks and best wishes to all TRESOC members and supporters,
Ian Bright, Managing Director

Totnes Community Wind Farm: no regrets

The founder members of the Totnes Renewable Energy Society were, and still are, an ambitious bunch of people.  The sheer scale of the challenges of dealing with climate change and fossil fuel depletion demand big solutions.  Nor can the laws of physics be denied, and the simple fact is that wind turbines offer the most abundant and cost effective source of renewable energy available to us.  

Finding suitable sites for wind turbines that meet planning and commercial criteria is a specialist job and a very great deal of professional expertise is needed to prepare a planning application.  And so, in 2008, soon after the formation of the Society in 2007, we contacted Dorset based wind developer, Infinergy, to ask if they would be interested to work with a local community owned renewable energy society to explore the possibility of wind power for Totnes and the surrounding parishes.

When Infinergy ran their wind prospecting software they found, as other wind developers have found before them; that the best local site for wind development, taking all planning criteria into account, is at Luscombe Cross.  There followed 18 months of careful and confidential negotiation with the Agent before all agreements were signed and the first TRESOC share issue was launched in 2010.  

Infinergy confirmed that, taking all planning criteria into consideration it was the best site for wind development. It has been a 6 year journey of discovery and steep learning curves for everyone involved.  From the first desktop studies to find the best site for a wind turbine, contacting the land agent, negotiating legal agreements and preparing the planning application.  We are rightly proud of the quality of the work that was done by TRESOC working in close partnership with a highly skilled and well-motivated team of wind development professionals.  Sir Jonathan Porritt, in his letter of support, describes the Totnes Community Wind Farm Planning Application as “one of the best designed and well supported applications we have seen”  Not good enough though for the local planning authority who turned it down on the grounds of the view.  We had steeled ourselves for rejection by the local authority but were not prepared Infinergy’s decision not to appeal.

The choice to develop a large scale wind energy as the first project amongst our portfolio was a conscious choice. It remains the most cost-effective way of generating renewable energy and we had identified the best suitable site in our locality with the help of the developer. This was an excellent investment opportunity for our members and would be a significant generator locally. 

The substantial public engagement that we provided raised the profile of the development locally. With the benefit of hindsight, this unintentionally hindered the project, as it enabled local opposition to organise and gain strength earlier than in a normal planning application. However we don’t believe that this should have been done in a different way. The whole point of community renewable energy is to engage the local population and increase awareness whilst providing social and financial benefits.
 

Totnes Community wind farm has given us a good degree of experience from which we have learnt from. We want the embryonic community energy industry to gain from our insights, so if you have any questions please get in touch.

Ian Bright
Managing Director

View the Totnes Community Wind Farm project on our website.