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In 2017, a wind turbine – christened ‘Varuna’ (the ancient sky god) – was commissioned to provide a source of new renewable energy and a regular income stream to support the community of Coigach, which is situated on a remote peninsula in the Northwest Highlands of Scotland.
Around 260 people live in Coigach, but the population’s declining and faces many of the challenges common to such remote communities. There’s a lack of affordable housing, decreasing levels of health provision and a fragile economy that’s over-reliant on the traditional industries of crofting, fisheries and seasonal tourism.
Coigach Community CIC, the community interest company that owns and operates the 500kW wind turbine in Coigach, is now working with Triodos Bank to raise £1.75 million through bonds available on the new Triodos Crowdfunding platform.
The fully operational turbine benefits from the UK government’s Feed-in-Tariff scheme (FiT), which guarantees inflation-protected income for 20 years. It has generated over 800,000kWh of clean energy to date.
The development of the wind turbine project was led by Coigach Community Development Company (CCDC), a local charity set up by residents of Coigach to benefit the community.
Over the next 20 years, Coigach Community CIC expects to generate surpluses of around £4.4 million after paying operating and finance costs. 100% of these profits will be donated to CCDC to fund projects that help to develop affordable housing, bring employment or work space into the area, develop transport links and amenities or conserve the natural area. One such project is the redevelopment of the community’s harbour facilities to support the local fishing fleet.
‘To tackle the big issues we face today we need to inspire ordinary investors to support progressive and credible community led businesses. This bond issue perfectly aligns with our mission at Triodos Bank to make money work for positive social, environmental and cultural change.’
DAN HIRD
Head of Corporate Finance at Triodos Bank
Click here to find out why Triodos Bank’s ethical savings accounts are a MyGreenPod Hero
The bonds will be secured by way of a first legal charge over the wind turbine asset, and will pay interest of 5% a year – increasing annually in line with inflation.
The bonds will be redeemed in instalments over 12 years and can be bought on Triodos Bank’s investment crowdfunding platform. The bonds are eligible to be held in an Innovative Finance ISA, which means interest can be received tax free.
‘Community energy is a great way of generating funds for the benefit of the local community.
‘By supporting our wind turbine project, investors are not only investing in an operating asset and the generation of renewable energy but can also be assured that they are helping us to tackle some of the most pressing issues our community faces.
‘Triodos Bank is a natural partner for us as they combine financial and renewable energy expertise with a commitment to business as a means of benefiting the community.’
IAIN MUIR
Director of Coigach Community CIC
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