Two community benefit societies in North Wales are launching share offers for hydroelectric plants, despite recent changes to tax relief and subsidies for community energy by the Conservative government.
Ynni Padern Peris managed to pre-register for the Feed in Tariff (FiT) before its rate was reduced, but Ynni Ogwen did not and will receive the current, much reduced, FiT rates. Neither qualifies for Seed Enterprise Investment Scheme or Enterprise Investment Scheme tax relief, which were withdrawn for community energy last November. Both launch their share offers on 27 February.
Dave Hollings of Co-operative and Mutual Solutions, who advised both bencoms, said: “Both schemes are much tighter. We have significantly revised the target to raise through community shares but both have been able to negotiate down their contraction costs.”
Ynni Padern Peris plans a micro hydro on Afon Goch in Llanberis and needs to raise £250,000 in community shares. It is offering return of around 5% on investments. The share offer will be available until 25 April.
Ynni Ogwen plans a hydroelectric plant just outside Bethesda near Bangor, North. It will generate an estimated 467MWh of electricity – enough for 100 homes – and offset approximately 325 tonnes of carbon dioxide emissions each year. The bencom needs to raise just over £500,000 and is launching a £160,000 community share offer on the Microgenius site.