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funding community projects at scale

funding community projects at scale. Will Dawson, Principal Sustainability Advisor, Forum for the Future. Overview. Who are Forum? Our approach to energy Our energy work Community energy funding at scale Local authority funding at scale Sources of funding Energy Services Frontline

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funding community projects at scale

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  1. funding community projects at scale Will Dawson, Principal Sustainability Advisor, Forum for the Future

  2. Overview • Who are Forum? • Our approach to energy • Our energy work • Community energy funding at scale • Local authority funding at scale • Sources of funding • Energy Services Frontline • Take homes

  3. Forum for the Future • Forum for the Future is a non-profit organisation working globally with business, communities and government to create a sustainable future. • We aim to transform the critical systems that we all depend on, such as food, energy and finance, to make them fit for the challenges of the 21st century. • We have 15 years’ experience inspiring new thinking, building creative partnerships and developing practical innovations to change our world.

  4. UK Investment required by 2020 From: Transform UK: Mobilising Investment for a clean energy future www.transformUK.org

  5. JT Group Chi Group

  6. Some of our energy projects at the Forum Gatecrashing the energy sector

  7. Climate finance initiative • SEEDA • - Low Carbon West Oxford • Ovesco • Eastleigh Borough Council • West Sussex • Low carbon building refurbs • Schools • Own estate • Behaviour change

  8. Feed-in tariff financing in action Low Carbon West Oxford • Local share issue • £1 million raised for renewables • 500kW renewables capacity • VFM: c.12x C reduction from PV • 90 out of 1600 households • Scaling up to city then county

  9. Case study: Birmingham Energy Savers • funded by Birmingham Council, energy suppliers and commercial banks, initially £100 million • 15,000 houses first, disadvantaged areas • Renewables and energy efficiency • Refinance: £2 billion for the next 200,000 homes • 500 new jobs per 10,000 homes refurbished • Part of ‘60% by 2026’ City target

  10. Low carbon communities model Investors Community Fund Projects Key Flow of money £ Banks Foundations Corporates HNWIs Local SMEs Cooperatives Local authorities Individuals Support provision and information Community energy project Aggregator Energy and retrofit S S S S S S S S £ £ S E E* Community Energy Co: Renewables and retrofits Households Businesses Organisations at least £1 billion to unlock to next 5 years £ Community benefit projects S £ £ £ £ £ £

  11. If the returns are there, why’s the big money hiding? • Most projects are too small to get the banks out of bed • Pension funds don’t understand the opportunity – flight to known risks • Each project on its own is too risky

  12. Steps to scaling up community energy

  13. Sources of capital funding • Established • Banks • Local authority • Local people • Corporates (e.g. British Gas and energyshare.com) • Possible in the future • Regional revolving funds, e.g. Finance South East Community Generation Fund • Green Investment Bank

  14. Energy services • Problem: risks and rewards divide interests of energy suppliers, engineers and users • Current Solution: energy performance contract / service company • NHS Trust and Honeywell

  15. London’s RE:FIT leadership • Framework Agreement to carry out works in the UK public sector • Buyer guidance and toolkits • 42 buildings so far – Fire, Police and TfL: • £7m investment, • £1m p.a. savings, 7-year payback • 28% energy saving average • 58 buildings in Tranche 2 • £70m London Green Fund for financing • ~ 3,000 buildings (40% of estate) in Tranche 3

  16. Sources of capital investment • Established • Capital reserves • Public Works Loan Board • Banks • Regional Growth Fund • European Regional Growth fund • London Green Fund • Possible in the future • Regional revolving funds, e.g. Finance South East Community Generation Fund • Local investors • Green Investment Bank

  17. Energy Services Frontline • Carbon: At least 35% savings • Frontline: reallocate savings to services • Whole community: involving building users, sharing savings with community • Scaling up: pilots to mainstream, e.g. role of Green Investment Bank, HM Treasury accountancy rules

  18. Recap of financing models covered • Aggregation via intermediate funds: small is beautiful and together can be large • Community share issues: achieve much more with community ownership • Local authority borrowing : for communities and for own estate • Service contracts: pure pay out of savings • Wholesale refinance: role for Green Investment Bank • Risk pooling: e.g. Finance South East • Self financing: from own balance sheets

  19. Forum projects and publications http://www.forumforthefuture.org/ w.dawson@forumforthefuture.org

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