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FINAL REPORT
NEW ENGLAND TABLELANDS
COMMUNITY WIND FARM
FEASIBILITY STUDY
AUGUST 2011
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1 EXECUTIVE SUMMARY
The purpose of the New England Tablelands Community Wind Farm Study was to assess
and determine the feasibility of a community co-operative based wind farm in the New
England Tablelands.
The Study was branded as 'New England Wind' to simplify public communications while
highlighting both the technology and region under consideration.
The clear message from the overwhelming majority of community and key stakeholders
was 'go for it'!
It is a great initiative and I hope it happens sooner rather than later.
A set of design principles for a successful community wind farm have been developed ~
addressing governance issues, turbine siting, operational management and scale. These
principles reflect the collective views of more than 1,300 people and organisations
directly involved in the Study, providing a substantial evidence base for the findings and
recommendations.
The Study recommends a hybrid dual entity legal structure to provide the strongest, most
feasible fit with the community's views. A range of different governance models were
considered.
The recommended hybrid structure would combine a co-operative and an unlisted
public company to attract maximum local participation, investment and support. It
would balance strong community governance through the co-operative while providing
a vehicle for commercial partnerships and larger investors through the unlisted public
company which would manage the wind farm operations.
It is recommended that an eight turbine wind farm be established, requiring $30m in
capital. This would produce sufficient electricity for 25,000 people and 9,000 dwellings ~close to half the residential load of the New England Tablelands.
An ambitious goal was found to be a key ingredient for the feasibility of the community
wind farm. Too small a goal risks being seen as tokenistic and lacking sufficient scale to
make a meaningful difference.
In this way the proposed scale and structure is intended to strike a pragmatic balance
between proving the capacity and support of the region to deliver a substantial wind
farm project and the strong desire, expressed consistently by hundreds of stakeholders
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and community members, for the long-term goal of full regional energy self-sufficiency.
One community-owned wind farm will only produce a small proportion of
the electricity needed, but it is a start. In due course we should aim to have100% renewable energy generated within the region, preferably from a
number of different sources...
There are several key elements to justifying this bold vision ~ the advantages of being a
designated Renewable Energy Precinct, availability of a quality wind resource, and a
large pipeline of approved and proposed commercial wind farm developments ~ which
together provide a momentum which New England Wind can 'slip-stream'.
Furthermore, the New
England has already
invested some $10-13m in
micro-generation with solar
PV and wind in the last three
years alone, demonstrating
real willingness to invest and
shift to sustainable energy.
This existing investment is of
similar magnitude to thatrequired for the proposed
community wind farm ~ with
the required $30m to be
one-third from each of local
community investors, larger
investors and borrowings.
A New England Tablelands community wind farm provides a compelling opportunity to
significantly advance energy self-sufficiency, leverage community, investor and public
funds, deliver substantial and measurable benefits including enhancing communityunderstanding and support for clean, renewable energy.
Can we please get started as soon as possible?
In this way a community wind farm would also benefit commercial wind development ~
through building community understanding, support and participation towards the need
for a large-scale uptake of renewable energy ~ which are key to successfully meeting
the NSW Government mandatory renewable energy target for electricity of 20% by 2020.
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Illustration 1: Solar trackers & micro-wind, Kyabra
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TABLEOF CONTENTS
1Executive Summary.........................................................2
2Background..........................................................................72.1Renewable Energy Development..............................................7
2.2About the New England Tablelands.........................................8
2.3Community Renewable Energy................................................... 9
2.4New England Community Energy Initiatives......................10
2.5Scope of Study.....................................................................................10
2.6Funding......................................................................................................11
3Research Methodology.............................................123.1Steering Group.....................................................................................13
3.2Survey.........................................................................................................13
3.3Planning Forums...................................................................................14
3.4Research Streams...............................................................................15
3.4.1Defining Community.......................................................................153.4.2Case Studies & Models.......................................................................15
3.4.3DECCW Community Attitudes Research................................16
3.4.4Prospective Sites.....................................................................................16
3.4.5Legal and Governance Structures.............................................16
3.4.6Government Legislation, Policy & Programs................... ....... 16
3.4.7Technical Partnerships & Issues......................................................17
3.4.8Challenges & Risks.................................................................................17
3.4.9Investment & Investor Profiling........................................................17
4Results.....................................................................................184.1Steering Group.....................................................................................18
4.2Survey.........................................................................................................23
4.3Planning Forums...................................................................................27
4.4Defining Community....................................................................29
4.5Case Studies & Models.................................................................... 294.6DECCW Community Attitudes Research ........................ ...31
4.7Prospective Sites..................................................................................31
4.8Legal and Governance Structures.......................................... 32
4.8.1NSW Co-operative................................................................................33
4.8.2Unlisted Public Company.................................................................34
4.8.3Hybrid................................... .................... .................... .................... ....... ...... 34
4.9Government Legislation, Policy & Programs......................35
4.9.1Financial Support...................................................................................35
4.9.2Planning Requirements.......................................................................36
4.9.3New England Local Government................................................37
4.10Technical & Other Partnerships................................................38
4.10.1Commercial & Technical Partnerships............................. ....... 38
4.10.2Local Government.............................................................................39
4.10.3Funding Body ~ New England Renewable Energy
Precinct, DECCW.............................................................................................40
4.11Challenges & Risks............................................................................41
4.12Investment & Investor Profiling..................................................46
4.12.1Investor Forum.......................................................................................47
4.12.2Comparison with Hepburn Wind...............................................48
4.12.3Professional Investors.........................................................................50
4.12.4Fund Raising Research.....................................................................50
5Design Principles.............................................................525.1.1Governance & Ownership................................................................52
5.1.2Wind Farm Operations........................................................................54
5.1.3Community Benefits, Knowledge & Understanding......... .55
6Recommendations........................................................576.1Feasible Options..................................................................................57
6.2Replicability of Hepburn Wind....................................................58
6.3Recommended Option..................................................................59
6.3.1New England Energy...........................................................................59
6.3.2New England Wind...............................................................................62
6.3.3Capital Structure....................................................................................63
6.3.4Common Principles...............................................................................64
6.4Local Government.............................................................................64
6.5Identifying Community...............................................................64
7Conditions to Initiate New England Wind......657.1Steering Group & Secretariat.................................................... ..65
7.2Seed Funding................................................................................. .......65
7.3NSW Government Support............................................................66
7.4Consolidate & Extend Technical & ProfessionalPartnerships...................................................................................................67
7.5Strengthen Community Involvement & Support..............67
7.5.1Community Benefits Plan..................................................................67
7.5.2Social Marketing Campaign ~ Knowledge &
Understanding..................... .................... .................... ................... .................... 68
7.5.3Wind Farm Study Tours........................................................................69
7.6Legal Formation & Fund Raising................................................69
7.6.1Sweat Capital & In-Kind Contributions.....................................70
7.7Site Short Listing & Feasibility.........................................................70
7.8Prospectus...............................................................................................70
8Advice for Other Communities.............................718.1Planning....................................................................................................71
8.2Participation...........................................................................................71
8.3People & Partnerships.......................................................................72
8.4Pragmatism.............................................................................................73
8.5Paradigms & Perceptions...............................................................73
8.6Pay...............................................................................................................74
9Acknowledgements.....................................................75
10About Starfish Enterprises........................................76
11Appendices.....................................................................7711.1Appendix 1 ~ Attachments.......................................................77
11.2Appendix 2 ~ Community Renewable Energy
Research Report, Community Power Agency........................77
11.3Appendix 3 ~ Survey Findings................................................ ..77
11.4Appendix 4 ~ Planning Forum Presentation: Glen
Innes Community Forum.......................................................................7711.5Appendix 5 ~ Participatory Planning Forums Analysis
..............................................................................................................................77
11.6Appendix 6 ~ Governance Models Options Analysis
..............................................................................................................................77
11.7Appendix 7 ~ Co-operative Structures, Environmental
Defenders Office (Northern Rivers)...............................................77
11.8Appendix 8 ~ Hybrid Legal Structures, Wilson & Co
Lawyers............................................................................................................77
11.9Appendix 9 ~ Hepburn Wind Investor Profile, Nicky
Ison.....................................................................................................................77
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ILLUSTRATION INDEX
Illustration 1: Solar trackers & micro-wind, Kyabra........ ...3
Illustration 2: Global installed wind power capacity,
Global Wind Energy Council.........................................................6
Illustration 3: New England Tablelands BioRegion, NSW
Government Office of Environment & Heritage...............7
Illustration 4: Public Launch of New England Wind
Study, New England Wind Consortium.................................12
Illustration 5: Welcome page ~ Qualtrics online survey,
courtesy University of New England.......................................13
Illustration 6: Survey Working Group (Left to Right):..... .18
Illustration 7: SLA website promotion......................................19
Illustration 8: Word Analysis ~ The first thing that comes
to mind when you think about wind farms in the New
England.....................................................................................................20
Illustration 9: How well does wind power perform
compared to other forms of electricity?.............................21
Illustration 10: Why source electricity close to our
region?.......................................................................................................22
Illustration 11: Armidale Community Forum...................... .23
Illustration 12: Community wind farm benefits ~
Planning Forums (Consolidated)...............................................24
Illustration 13: Landholder Forums hosted with
Landcare ~ Kyabra & Walcha...................................................27
Illustration 14: Deputy Mayor, Councillor Jim Maher,
Armidale Dumaresq Council, Armidale Community
Forum..........................................................................................................35
Illustration 15: Joint a-frame for public displays (front &
back)............................... .................. .................. ................... ....... ...... ...... . 36
Illustration 16: Uralla Community Forum ~ Interest to
invest.......................... ................... .................. .................. ................... ....... 42
Illustration 17: Importance of different reasons for
investing....................................................................................................43
Illustration 18: Community Survey ~ How much would
you be willing to consider investing?.....................................44
Illustration 19: Hepburn Wind Investor Profile (1).............45
Illustration 20: Hepburn Wind Investor Profile (2).............45
Illustration 21: Community Survey ~ What kinds of
landscape are suitable for wind turbines?.........................51
Illustration 22: Recommended governance structure
.................. .................. .................. ................... .................. ................... ......... . 57
Illustration 23: Wind farm development timeline ~
Kyoto Energy Park, Parmada......................................................61
Illustration 24: Community Survey ~ Rate the
importance of the following benefits from a
'community-owned' wind farm................................................64
Illustration 25: Origami windmill campaign........................64
Illustration 26: Glen Innes Community Forum...................68
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2 BACKGROUND
2.1 R ENEWABLEENERGYDEVELOPMENT
The New England Tablelands is an identified priority area for renewable energy due to its
high quality wind resource and electricity grid infrastructure. It forms part of the NSW
Government New England North West Renewable Energy Precinct.
One wind farm is currently approved for the New England Tablelands (Glen Innes, 44-
81MW) with a further three wind farms in development (Ben Lomond Wind Farm, 165MW;
Sapphire Wind Farm, 356-485MW; White Rock Wind Farm, 150MW).
Wind power is widely recognised as the only renewable energy technology that is
commercially proven and scalable to meet growing demand for electricity with
negligible carbon footprint.
South Australia sources some 20% of its electricity from wind energy, demonstrating the
ability of current grid architecture to match demand with wind power generation. South
Australia plans to meet 33% of its electricity from wind by 2020, comparable with
Germany who already source nearly 30% from wind.
NSW currently sources 0.25% of electricity from wind power.
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Illustration 2: Global installed wind power capacity, Global Wind Energy Council
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2.2 ABOUTTHENEWENGLANDTABLELANDS
The New England Tablelands BioRegion has a population of 53,000 and around 18,000
dwellings. It covers an area of 3 million hectares which is largely (95%) within NSW. The
Tablelands are the largest highland area in Australia and the only one to include a city
(Armidale).
Large sections of the Tablelands are 800m above sea level, and many areas rise above
1,000m. The highest point is Round Mountain in Cathedral Rock National Park which is
1,586m above sea level.
The region contains a number of large agricultural properties, is mostly sparsely settled,
and has a recognised potential for the production of energy from wind.
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Illustration 3: New England Tablelands BioRegion, NSW Government Office of
Environment & Heritage
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2.3 C OMMUNITYRENEWABLEENERGY
Community renewable energy is a discrete segment of the renewable energy sector.
Community wind power projects in Denmark played a pivotal role in kick-starting the
commercial wind power industry. Denmark is now a global leader in wind turbine design
and manufacture.
While community renewable energy is a relatively new concept in Australia, it is a
substantial segment in Western Europe and Northern America. For example, community
and co-operative owned energy in Germany accounts for 8% of electricity generation
and employs some 90,000 people.
Hepburn Wind is Australia's first community wind farm, with Denmark, Western Australia,likely to be the second.
The use of the term community in this context can incorporate the following principles1:
Ownership and governing influence;
Scaling to meet local energy demand and/or supply;
Involvement of community members, organisations and stakeholders in the project
design and development; and,
Accruing of benefits to the community such as employment, ownership, financial
and energy returns.
In addition to the general benefits of renewable energy, certain further advantages and
benefits arise from community renewable energy initiatives:
Community ownership and leadership, with flow on effects to renewable energy
more generally (as was the case in Denmark);
Community support, participation and benefits distinguishing such enterprises from
the conflict which can characterise commercial wind development;
Community-owned asset, financial returns for community priorities, local and
sustainable electricity, green collar employment and supply-chain business;
Community education and capabilities in energy, governance; and, Demonstrating a best practice model for community involvement and social
license to operate.
1 Appendix 2 ~ Community Renewable Energy Research Report, Community Power Agency, pp.
3-8.
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2.4 N EWENGLANDCOMMUNITYENERGY INITIATIVES
There have been significant community-oriented renewable energy initiatives in the New
England.
Farming the Sun2, Australia's largest community solar enterprise and coordinated by
Starfish Enterprises, has directly supported the uptake of $6.5m worth of solar energy
systems since late 2008. This initiative utilised the NSW Government Solar Bonus Scheme
and Australian Government Solar Credits and Solar Homes and Communities Programs.
A similar amount of solar systems were taken up across the region through private
companies.
The need for 'New Energy' is an identified priority in the recently completed New
England Sustainability Strategy3. The Strategy took two and a half years to develop with
direct involvement of some 1,000 stakeholders.
Three local community groups are working for the regional uptake of renewable energy:
Sustainable Living Armidale through their Renewable Energy Reference Group
working on community-scale initiatives and their local Energy Group focussed on
the city of Armidale;
U3CF ~ Uralla Community Climate Change Forum is a formal Uralla Shire Council
sub-committee working on energy matters relating to climate change; and, Southern New England Landcare's High Country Urban Biodiversity Project (HiCUB)
is working to improve the uptake of alternative energy technology.
2.5 S COPEOFSTUDY
The purpose of the New England Community Wind Farm Study was to examine the
feasibility of a community co-operative based wind farm in the New England Tablelands,
with the capacity to generate between 4MW and 10 MW.
The scope of the study included:
Identifying potential for participation by landholders and local residents, leading
to recommendations to maximise participation by local financial institutions,
Landcare, landholder groups, community groups and local government;
2 Appendix 1 ~ Attachments, pp. 4-5.
3 Appendix 1 ~ Attachments, p. 6.
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Identifying the best vehicle for raising investment and development funds,
recommending arrangements to attract community investment in partnership with
commercial interests;
Researching the most appropriate co-operative structure(s) for the venture; Recommending arrangements to fairly and effectively manage risks across
different stages from pre-planning approval through construction and operation;
An assessment of the replicability of the Hepburn Wind Farm in Victoria;
An assessment of the applicability of any relevant existing co-operatives and
similar arrangements, both within the Precinct ,and elsewhere in Australia and
overseas; and,
Study of relevant Australian, State and Local Government legislation, regulation
and programs.
The scope did not extend to assessing the feasibility of a wind farm at a particular site
through wind speed monitoring, grid connection etc. Rather, the Study was based on the
assumption that the conditions for a successful medium size wind farm exist, founded on
wind speed levels and consistency.
This Final Report also contains recommendations and protocols which can assist the
development of similar community renewable energy initiatives in other NSW
Government Renewable Energy Precincts.
2.6 F UNDING
The Study was funded utilising NSW Department of Fair Trading's Cooperative Research
funding, matched with funding from:
NSW Office of Environment and Heritage;
The Community Mutual Group;
Sustainable Living Armidale;
Farming the Sunand Starfish Enterprises.
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3 RESEARCH METHODOLOGY
The research methodology to assess and determine the feasibility for a community wind
farm was particularly designed to determine a structure which would:
maximise participation by local financial institutions, landcare and landholder
groups, community groups and local government; and,
attract community investment, potential commercial partnerships and interests to
support capital raising and project management.
A range of methods tailored to the diverse audiences with common themes being:
Assessing the potential for participation by landholders, local residents and
partners;
Identifying ways to fairly, effectively manage risks across different stages from pre-planning approval through construction and operation;
Mapping key issues, guidelines and design principles; and,
Considering opportunities and best vehicles for raising investment and
development funds.
The major milestones4 detail the timing and key activities in the following areas:
Steering Group partners and network ~ its formation, meetings and strategic
decision making;
Community network development to maximise reach and participation;
Potential for participation (by landholders, the community and professional
investors) through community planning forums and one-on-one meetings;
Nine research streams (considering co-operative and other legal structures,
investment vehicles, government legislation and policy at all levels) of desk-top
literature searches and professional advice;
Risks, principles and opportunities were key considerations included in the online
survey and each of the above streams of work;
Documenting and communicating the research process and outcomes to
maximise profile, reach and generate further support and participation;
Long-term potential partnerships were investigated with legal, electricity buyers,marketing professionals, and turbine technology providers; and,
Starfish Enterprises' overall governance and coordination of the Study.
4 Appendix 1 ~ Attachments, p. 7.
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3.1 S TEERINGGROUP
The Steering Group, known as the New England Wind Consortium, was formalised at the
commencement of the Study, following their 'in principle' agreement to be involved in
the tender process.
This Group brought specialist
expertise and broad networks
to the overall Study planning,
coordination, analysis and key
strategic decisions regarding
the research findings, feasibility
of the community wind farm
and recommendations5
.
The Steering Group fulfilled the
following responsibilities for the
Study:
Development of the
Feasibility Study Plans,
Research and Legal
Advice Briefings, Partner Roles and Responsibilities, Promotion and
Communications Plan;
Analysis of Findings from the Community Survey, Legal Advice and Community
Renewable Energy Case Studies Research; and,
Determination of the Recommendations detailed later in this report.
3.2 S URVEY6
The project survey was designed to build upon findings from the existing DECCW
Community Attitudes research, using Qualtrics survey software provided by The University
of New England.
As an online tool the survey was the key research strategy to enable participation of
larger numbers of community members, investors and stakeholders. It was promoted
throughout every stream of work to maximise take-up.
5 Appendix 1 ~ Attachments, p. 8.
6 Appendix 3 ~ Survey Findings
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Illustration 4: Public Launch of New England Wind Study, New
England Wind Consortium
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Key components of the survey were:
General views regarding wind farms;
Preferences for different sources of electricity, including wind;
Relative importance of local generation and community ownership; Views on what the inclusions should be for the definition of New England
Community;
Siting principles for turbines;
Identification of risks and other issues; and,
Willingness to invest, purchase electricity and host wind turbines.
3.3 P LANNINGFORUMS
A series of nine Community Forums were held across the Tablelands:
Community forums in Armidale, Uralla, Kyabra, Walcha and Glen Innes ~ reaching
a wide selection of potential investors, landholders and the community.
Nearly 200 attendees were involved with Armidale being the largest
(hosted by Armidale Dumaresq Council in the Town Hall).
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Illustration 5: Welcome page ~ Qualtrics online survey, courtesy
University of New England
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A dedicated Investor Forum hosted by Community Mutual Group;
Two educational institute forums including The University of New England; and,
A Northern Region of Aboriginal Land Councils forum in Tamworth.
Each forum7 covered:
Major benefits, advantages and opportunities of a community wind farm;
Key risks and challenges;
Key design, structure and governance principles;
Interest to become a member and/or investor; and,
Priority next steps.
The planning forum process is an innovative open dialogue facilitated to include
perspectives from every attendee and draw out their understanding and views, positive
and negative, without any significant influence from the facilitators. This method provides
truer guidance on the perspective of the community without the use of leading
questions or pre-determined information. For example, the opening presentation8 to set
the scene for the forums was carefully designed to provide the minimum details to frame
the discussion and no more.
This method is distinctly different to the prevailing paradigm of 'community consultation'.
3.4 R ESEARCHSTREAMS
3.4.1 D EFININGCOMMUNITY
A literature research was undertaken to analyse definitions of community generally and
as applied to community renewable energy initiatives.
3.4.2 C ASESTUDIES& MODELS
Desk-top research considered 24 Australian and international community renewable
energy initiatives, assessing legal and governance structures, community benefit models,electricity sale, capital and fund raising as well as the significance of the community
renewable energy segment generally.
The researchers drew on their first hand study of community renewable energy projects
in Europe and Northern America.
7 Appendix 1 ~ Attachments, p. 22.
8 Appendix 4 ~ Planning Forum Presentation, Glen Innes Community Forum
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3.4.3 DECCW COMMUNITYATTITUDESRESEARCH
Further analysis of the data for New England respondents to the DECCW Community
Attitudes Research9 was undertaken with the agreement of the NSW Office ofEnvironment & Heritage.
3.4.4 P ROSPECTIVESITES
Prospective sites were identified through the Community Survey10, requests made through
the media and other communications and Expressions of Interest collected at
Participatory Planning Forums and other events.
3.4.5 L EGALANDGOVERNANCESTRUCTURES
Four streams of advice11 were collected to address a range of potential legal, financial
and governance structures:
1. Hybrid legal structures including an unlisted public company;
2. Co-operative legal structures and the replicability of the Hepburn Wind co-
operative model in NSW considering the existing knowledge base about Hepburn
Wind on the Embark Wiki;
3. Australian and International community renewable energy models and case
studies; and,
4. Peer review of this advice by Embark, including assessment of legal andgovernance research structures to ensure it complemented the existing
knowledge base on the Embark Wiki.
3.4.6 G OVERNMENTLEGISLATION, POLICY& PROGRAMS
Desk-top research was undertaken to identify relevant NSW and Australian Government
legislation, policy and programs.
Policy recommendations were developed taking into consideration internationalframeworks supporting community renewable energy.
9 Community Attitudes to Wind Farms in NSW, Department of Environment, Climate Change and
Water NSW, AMR Interactive, September 2010
10 Appendix 3 ~ Survey Findings, p. 20.
11 Appendix 1 ~ Attachments, p. 15.
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3.4.7 T ECHNICALPARTNERSHIPS& ISSUES
The technical feasibility of a community wind farm was tested in discussions with
professional services across commercial and community wind and renewable energy.
Participants included developers, grid operators, project managers, turbine retailers, and
representatives from construction, electricity purchase and retailers, investment and
financial services.
3.4.8 C HALLENGES& RISKS
Literature research complemented the Survey and Forum streams in identifying general
wind farm challenges and risks, community wind farms challenges and risks and those
unique to the New England Tablelands.
3.4.9 I NVESTMENT& INVESTORPROFILING
Selected aspects of the Hepburn Wind investor database were analysed, de-identified
to maintain investor confidentiality, to profile key investment demographics and
characteristics of community renewable energy investors.
Discussions with potential local investors and financial groups were combined with
approaches to ethical investment and superannuation specialists to assess fund raising
opportunities.
The community survey included questions about likely investment and reasons for
investing, supplemented by a question about in principle support and investment raised
at each planning forum.
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4 RESULTS
A key objective of the Feasibility Study was to determine whether there is sufficient
support ~ community, investor, landholder, professional and commercial partnerships ~
for the successful establishment of a community wind farm.
The overwhelming response was positive and supportive ~ in terms of general support
through to more tangible measures such as indicative investment, willingness to host
turbines and partnerships.
This finding reflects the views of more than 1,30012 people directly involved. This
substantial level of participation was a direct outcome of the profile afforded the Study
by media, promotions and partner communication activities to ensure the widestpossible participation, audience and awareness of the opportunity to contribute their
views13.
This support does however come with conditions. Throughout the Study evidence was
gathered regarding what the key principles would be for an acceptable wind farm.
These design principles are detailed in Section 5.
Concurrent with assessing community support and conditions several streams of
professional advice were obtained with regards to legal and governance structures as
well as analysis of other community renewable energy projects (wind and solar) from
Australia and internationally.
4.1 S TEERINGGROUP
The partners involved with the Steering Group brought a diversity of expertise and
contributions.
Individual contributions by the Steering Group Partners included:
The Community Mutual Group (TCMG) co-funded this Feasibility Study, hosted adedicated forum for investors and participated in nearly every public event. A
further Focus Group will be held with CMG staff and stakeholders regarding the
Findings and Recommendations detailed in this report.
Environmental Defenders' Office (NSW) provided legal advice on NSW Co-
Operative structures, the transferability of Hepburn Wind's Victorian Co-operative
structure, and their application to a community wind farm operation.
12 Appendix 1 ~ Attachments, p. 16.
13 Appendix 1 ~ Attachments, pp. 17-21.
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Wilson & Co Lawyers contributed direct professional expertise relating to hybrid
structures and a stake holding model to enable valuation and conversion of non-
cash contributions and support for the wind farm (eg. in-kind and pro-bono; sweat
capital, discounted services; beneficiaries and affected parties such asneighbours) into share/stake holding.
Southern New England Landcare (SNELC) & High Country Urban Biodiversity Project
(HiCUB) hosted two community forums ~ Walcha & Kyabra ~ made presentations
to their Board and have supported promotion with media releases, newsletters,
email announcements and website links. Numerous landholders interested in
hosting wind turbines have been reached through the SNELC/HiCUB network.
Embark & Hepburn Wind contributed significant expertise and mentoring,
particularly reviewing planning documents and the research matrix. The
opportunity to analyse the Hepburn Wind investor database was of significant
value. Embark have offered to provide in-kind support with desk-top analysis of
possible wind sites at the appropriate time and have indicated that New England
Wind is strongly placed to compete for a share in an upcoming seed funding
round.
The University of New England (UNE) contributed expertise and software for the
Online Survey as well as promotion throughout their organisation. Two dedicated
forums have been held with UNE ~ one with facilities management hosted by New
England Wind and the other hosted by the Renewable Energy Precinct, focussed
on development of a renewable energy research institute allied to a community
cooperative wind farm.
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Illustration 6: Survey Working Group (Left to Right):
Adam Blakester, Ray South, Assoc. Professor Don Hine, Patsy Asch, Bar Finch, Liz Gardiner, Glenda
Kupczyk-Romanczuk, Methuen Morgan, Mahalath Halperin
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Armidale District Chamber of Commerce contributed promotional support to
convene a Business Focus Group to analyse the Preliminary Findings.
Sustainable Living Armidale (SLA) co-funded the Study and hosted the largest
community forum, held in Armidale Town Hall and attended by more than 80people. A dedicated round table discussion was held with their Energy Working
Group and they provided in-kind support with an email listserver (RenewRefGroup)
and have promoted New England Wind with media releases, newsletters, website
links (pictured below) and a poll.
4.2 S URVEY14
Nearly 600 responses were received to the community survey and the findings provided
an extensive data set identifying both levels of support and interest to participate as well
as a wide range of community views on electricity, energy generation and wind power
which are especially pertinent to the design principles (detailed in Section 5) for the
community wind farm.
14 Appendix 3 ~ Survey Findings
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Illustration 7: SLA website promotion
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The major findings of the community survey were:
Emphatic support for the proposition of a community wind farm. Over 90% strongly
agreed or agreed that they would like a community owned wind farm and 75%
self-assessed as positive the first thing that comes to mind (word analysis below,with larger word sizes reflecting multiple respondents using exactly the same word,
spelling and capitalisation) when they think about wind farms in the New England;
Wind, followed by solar, was rated as the most preferred way to generate
electricity for the New England. Coal, gas and nuclear were rated extremely low;
Wind power was positively rated across a wide range of key power generation
characteristics (graphed on following page);
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Illustration 8: Word Analysis ~ The first thing that comes to mind when you think about wind farms
in the New England
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Illustration 9: How well does wind power perform compared to other forms of electricity?
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More than 95% of respondents believe it is very important or important to source,
produce and use energy available in or close to our region. Their reasons given
are analysed below, with larger word sizes reflecting multiple respondents using
exactly the same word, spelling and capitalisation;
350+ confirmed their interest in purchasing the electricity generated;
340+
indicated their interest in investment totalling $3m; 235 expressed interest to visit a working wind farm;
90 were interested to find out more about hosting turbines on their property;
Clarification of desired definition for 'community' in terms of community ownership,
governance and benefits from the wind farm; and,
Clarification of key issues with regards to turbine siting (distance from dwellings,
visibility, type of landscape, etc.) which are incorporated into the design principles
later in this report.
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Illustration 10: Why source electricity close to our region?
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More than 300 respondents answered the very last question to add 'anything else' they
would like to say about a New England community wind farm. This level of voluntary
response at the end of a lengthy and thorough survey reiterates further supports the
keen level of interest. Their responses were strongly positive15
.
4.3 P LANNINGFORUMS16
Nearly 200 people and organisations participated in the nine Planning Forums. As open
discussions these forums provide a rich resource of information regarding the
community's current understanding of wind power and related electricity issues. More
than 20 hours of video footage has been recorded and analysed to validate and
supplement the written responses and white-board note taking during the forums.
The major findings from the Forums are incorporated into the design principles (refer
Section 5) for the community wind farm rather than repeated here. The challenges and
risks identified have been consolidated with those identified in other streams of research
and are presented later in this section.
The recurring message which came through most strongly was the desire and aspiration
for energy independence, consistent with the community survey responses, while at the
same time expressing strong support for the establishment of New England Tablelands
community wind farm as being a significant step towards this long-term goal.
15 Appendix 3 ~ Survey Findings
16 Appendix 5 ~ Participatory Planning Forums Analysis
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Illustration 11: Armidale Community Forum
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From a governance and structural perspective this finding prompts the need to ensure
that the super structure of the legal model can support and progress a multi-staged
approach towards the long-term goal of energy independence as well being able to
deliver an immediate community wind farm project.
The benefits and advantages of a community wind farm are analysed and presented in
the world analysis below (with larger word sizes reflecting multiple respondents using
exactly the same word, spelling and capitalisation) ~ with clear emphasis on the benefits
of community ownership, clean energy with a low environmental footprint that generates
local employment and independence.
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Illustration 12: Community wind farm benefits ~ Planning Forums (Consolidated)
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4.4 D EFININGCOMMUNITY17
The meaning given to 'community' is a key element of the community wind farm in terms
of defining the boundaries (inclusion and exclusion) for the purpose of ownership,
governance, decision-making; as well as for the purpose of the return of benefits,
particularly those to the wider community and beyond the direct parties to the wind
farm such as shareholders, employees, suppliers, landholders and electricity users.
The clear finding was to define community as those persons and organisations that
have a clear local residence, stake or ownership in the New England Tablelands or
Region18, who are:
Local ~ in terms of the social, cultural and geographic identity of the New
England Region, NSW, Australia; and, Individuals ~ those who live or own land in the New England; or,
Organisations ~ businesses owned by local people and local organisations such
as superannuation funds, family trusts or community organisations with local
governance.
As detailed elsewhere in this report there was a clear requirement for any New England
community wind farm to be governed by the community, implying that the majority of
ownership, investors and benefits would accrue to the community as defined above.
By contrast this means that a minority of investors could come from outside thecommunity as defined, while ensuring that the risk of these outside interests gaining
control was managed and precluded.
4.5 C ASESTUDIES& MODELS19
Twenty-four Australian and international community wind farm and renewable energy
projects were assessed in regards to their:
Definitions of 'community' and 'community renewable energy';
Legal and governance models; and, Capital and fund raising.
Each of these findings are incorporated into the relevant sections of this report.20
17 Appendix 2 ~ Community Renewable Energy Research Report, Community Power Agency
18 Appendix 1 ~ Attachments, p. 23.
19 Appendix 2 ~ Community Renewable Energy Research Report, Community Power Agency
20 Definition of Community, Section 4.4; Legal and Governance Structures, Section 4.8; Investment,
Section 4.12; Seed Funding, Section 7.2
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Advantages of community renewable energy were identified as being:
Building community resilience and empowerment;
Building a strong movement of action on climate change;
Developing the renewable energy industry; Supporting rural and regional communities and fostering local economic
development; and,
Enabling action on many values and goals simultaneously.
The broad variety of different community renewable energy projects underlines the
critical importance of ensuring the definition applied for the New England Tablelands' is
strongly aligned with community and stakeholder needs and aspirations (as defined
above). The following list highlights this breadth of purpose and structure:
Middelgrunden Wind Turbine Co-operative ~ a joint venture between
Copenhagen and wider Danish residents and the municipal utility with 8,500 local
members;
MinWind I-IX ~ nine separate corporations running 1-2 turbine wind farms, each
owned by 33 local farmer-investors in Minnesota, USA;
Hepburn Wind ~ a co-operative-run wind farm with majority local people of
Daylesford shire in Victoria as shareholders which contributes money to a
Community Sustainability Fund;
Ellensburg Community Solar ~ a solar installation organised and run by the
municipal utility, a local university and a local environment group in Washington
state, USA, in which local residents of are investors; Mt Barker Community Wind Farm ~ a wind farm sized to the demand of the local
community of Mt Barker, Western Australia, though owned by a company with
majority corporate and non-local, even international, investors;
Baywind Wind Co-operative ~ initially a joint venture between a wind developer
and a co-operative of Cumbrian and wider UK residents, with a small community
fund for energy efficiency projects in the Cumbrian community;
Westray ~ a one turbine wind development, owned by the Westray Development
Trust, whose membership is open to any adult on the island of Westray, UK; and,
Dardesheim Wind Farm ~ a large wind farm in Germany , predominantly owned
by a developer, with shareholding opened up to local community members, a
small percentage of the wind-farm revenue also goes to the town council.
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4.6 DECCW COMMUNITYATTITUDESRESEARCH
Ninety-five New England responses were extracted and analysed from the NSW-wide
DECCW Community Attitudes Research.
The key findings regarding the views of the New England respondents were:
Strong support for wind farms though only modest support for wind power as an
'acceptable' power source (solar and hydro received the strongest levels of
support of the clean and renewable power sources);
Strong levels of support for wind farms within 10kms of own property and
moderate support if located 1-2kms from own property;
Moderate levels of understanding of wind power;
Significant levels of concern regarding safety, noise and health impacts of windfarms; and,
A desire for more information and consultation from government.
4.7 P ROSPECTIVESITES
A sufficient number of potential sites were identified and collected to confirm the
assumption that conditions for a successful medium size wind farm existed and more
importantly could be translated into reality.
More than 110 landholders have expressed interest in hosting turbines, from thecommunity survey21 and other direct contact with landholders.
Several of these sites are strongly aligned with the design principles detailed above.
21 Appendix 3 ~ Survey Findings, p. 20.
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Illustration 13: Landholder Forums hosted with Landcare ~ Kyabra & Walcha
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4.8 L EGALANDGOVERNANCESTRUCTURES
Wilson & Co Lawyers, NSW Environmental Defender's Office, Embark and the Community
Power Agency identified possible governance structures, legal and finance models for
the community wind farm22.
The Steering Group considered the various options in determining the recommended
structure detailed later in this report. The key consideration was the best legal and
governance structure to meet the design principles from the community planning
process.
While nine possible models were identified23 from the wide range of community
renewable energy projects from Australia and around the world, three legal structureswere considered feasible, being:
1. NSW Co-operative;
2. Unlisted Public Company; or,
3. Hybrid of NSW Co-operative and Unlisted Public Company.
A key finding was that in technical terms any of the above models could be suitable for
a community wind farm operation. While there are of course technical differences in
how they function and the relevant legislative regimes they are subject to, these are not
necessarily materially significant.
Further, both legal teams advised that any constitution could be tailored to fit the
specific design principles for a community wind farm. It was their view that there is
sufficient flexibility within the various legal structures and legislation to accommodate
requirements. This is in direct contrast to the prevailing perception that a community
wind farm would need to fit within inflexible structures.
Rather, what distinguishes structural strengths and applicability are matters of perceived
appropriateness:
There is a widely held belief and view that community governance, ownership,
decision-making and interests are best achieved and protected within a co-
operative structure;
Corporations, business, professional investors and government are generally
believed to be more comfortable with the transparency and accountability
required by the standards placed on an unlisted public company structure and
the national legislation of the Corporations Act (2001).
22 Appendix 6 ~ Governance Models Options Analysis
23 Appendix 2 ~ Community Renewable Energy Research Report, Community Power Agency
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To quote the Environmental Defender's Office advice:
Co-operatives and public companies tend to provide the most successful
outcomes for community projects. However each has benefits and
drawbacks. In general, it has been said that the co-operative structure hasbeen popular with local communities, who seek benefits other than simply a
return on share capital. However, corporate or institutional investors often
prefer the public company structure, as it focuses on generating a return on
their share capital.
[The New England community wind farm] must determine what priorities it
has, in terms of delivering its design and innovation. This will include the
ideological framework within which it is intending to operate.
4.8.1 NSW CO-OPERATIVE24
To paraphrase key findings from the legal advices:
Co-operatives are unique in that they generally require 'active membership' on
the part of the member. For example, in order to remain an active member of
Hepburn Community Wind Park Co-operative Limited a member: (a) must
purchase or consume energy generated directly or indirectly by the Co-
operative; or (b) subscribe to the Co-operative s information advisory service
relating to energy usage and efficiency; or (c) subscribe to the Co-operative s
newsletter. Co-operatives are democratic institutions and each member has one vote only,
irrespective of how many shares they hold.
Importantly, the legislation in NSW is very similar to that in Victoria and so were the
New England project to model itself on the Hepburn Wind project there would be
no great differences in terms of the legal form of the co-operative.
Provisions specifically prohibit cooperatives from carrying on business across
borders without approval from the local Registrar of Cooperatives. Compliance
with these approval requirements imposes costs on cooperatives which place
them at a competitive disadvantage to companies.
The main difference between a director of a co-operative and a director of a
company is that the director of a co-operative must also be a member of the co-
operative. This is qualified in that a co-operative can have one non-member
director for every three member directors.
International network and common co-operative principles as adopted by the
International Co-operative Alliance (ICA) apply to NSW Co-operatives.
24 Appendix 7 ~ Co-operative Structures, Environmental Defenders Office (Northern Rivers)
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Changes to the rules of a co-operative may be made by special resolution of the
members or by resolution of the board subject to approval of the Registrar. Such
alterations to the rules of the co-operative are likely to be more difficult to
achieve than would be the case for a public company. Compliance requirements of a co-operative may be more onerous than that of a
public company because of the lack of standardisation of the rules for co-
operatives as compared to the corporations law applicable to public companies..
4.8.2 U NLISTEDPUBLICCOMPANY25
To paraphrase key findings from the legal advices:
Public companies are attractive due to the audit and taxation obligations
imposed on them which create high a degree of transparency and
accountability in the activities of the entity.
Public companies enjoy maximum flexibility in respect of share issues, dividend
policies, cross border trading, shareholder participation and protection and fund
raising. For example the constitution could apply a similar one shareholder one
vote rule as is the norm for the co-operative model.
This entity provides the most flexibility, transparency and accountability for the
benefit of investors, passive shareholders, management and third parties such as
suppliers and government agencies involved with the project.
An unlisted public company can have unlimited shareholders to raise capital for
profitable purposes, but it cannot advertise for investors. Public companies with more than 50 members, which is likely to be the case for
the community wind farm, may be subject to the takeover provisions of the
Corporations Act. Very basically, a company may be subject to the acquisition of
particular shareholder interests where the acquiring interest held in the company is
substantial. It may be possible to structure a company to avoid takeovers
however this requires further investigation.
4.8.3 H YBRID26
Blending a co-operative and unlisted public company together affords scope to access
a wider range of advantages and flexibility.
In short there is potential to utilise a co-operative structure for investment, ownership,
governance and decision-making by the community together with an unlisted public
company as a subsidiary entity for dealings with larger investors, professional and
corporate partners and government.
25 Appendix 8 ~ Hybrid Legal Structures, Wilson & Co Lawyers
26 Appendix 8 ~ Hybrid Legal Structures, Wilson & Co Lawyers
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To ensure consistency with the design principles the co-operative would need to hold a
majority shareholding and controlling interest, with both constitutions enshrining the
relevant design principles detailed earlier ~ for instance quadruple bottom line
governance approach, accessibility of decision-makers, open decision-makingprocesses and anti-takeover provisions.
4.9 G OVERNMENTLEGISLATION, POLICY& PROGRAMS
The NSW New England Tablelands Renewable Energy Precinct, and the joint Australian-
NSW Governments' 2020 20% Mandatory Renewable Energy Target, are key policy drivers
for commercial wind development especially, and New England Wind can be expected
to capitalise on the large amount of regional commercial activity scheduled to take
place from 2013 onwards.
4.9.1 F INANCIALSUPPORT
Financial benefits arise from this scheme through the creation of Renewable Energy
Certificates for energy generated. An alternative for consideration is usage of the
GreenPower scheme. Both options provide financial returns, however there will
potentially be environmental issues which arise with respect to how the purchaser of the
Credits or GreenPower uses the 'offset'.
The NSW Government Co-operatives Development Grants Program was utilised as
keystone funding for this Study. The Program provides grant funding to assist co-
operatives to establish, develop and/or expand. This program funds up to 50% of a
project feasibility study providing a co-operative is formed. The program does not fund
capital costs. The program may fund market research including wind resource monitoring
and other aspects of a feasibility study (eg a feasibility study into grid connection but not
the costs of building the connection). Up to $100,000 per annum is available. The
program is administered by the NSW Department of Fair Trading.
Other possible NSW Government incentives include: Climate Change Fund grant funding;
Regional development grants program;
Capital raising program;
Business advisory services; and,
Renewable Energy Precincts.
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There may be opportunities to obtain grant funding for community renewable energy
projects under the Australian Government Clean Energy Initiative, administered by the
Department of Resources, Energy and Tourism. The Clean Energy Initiative includes the
Solar Flagships Program, the Australian Centre for Renewable Energy, and theRenewable Energy Future Fund.
The Renewable Energy Future Fund was announced in the 2010 Australian Government
budget to provide additional support for the development and deployment of large and
small scale renewable energy projects. It will include partnerships between the
Government and the private sector to make critical early stage investments to leverage
private funds to support the commercialisation of renewable technologies. Funding will
be delivered through a number of departments and agencies, with the Department of
Climate Change and Energy Efficiency coordinating Fund priorities and progress.
The Department of Agriculture, Fisheries & Forestry also administers grants to farming
communities who group together on a particular project to help them adapt to climate
change, under the FarmReady Industry Grant. Acceptance of pre-approvals for training
will recommence from 1 July 2011.
The Enterprise Connect initiative has state-based Innovation Centres that provide on-
going support, and sometimes funding, to small and medium enterprises, including those
involved in clean energy.
4.9.2 P LANNINGREQUIREMENTS
Planning Approval is likely to require a Joint Regional Planning or Part 3A approval
(Environmental Planning and Assessment Act 1979, NSW). Part 3A is currently under
review.
NSW wind farms are permissible with consent in the following land use zones:
Rural zones: RU1 Primary Production; RU2 Rural Landscape; RU3 Forestry; RU4 Rural;
Small Holdings
Industrial zones: IN1 General Industrial; IN3 Heavy Industrial
Special use zones: SP1 Special Activities; SP2 Infrastructure
Glen Innes Severn Council in the New England Tablelands have implemented a
Development Control Plan for wind farms (detailed below). There have been negative
experiences with commercial wind development in the Glen Innes area which were
apparent in the community forum held there. For pragmatic reasons it is recommended
that sites elsewhere in the New England Tablelands, where there is strong support, be
prioritised for the first community wind farm.
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Glen Innes Severn Council Development Control Plan
Areas of the Glen Innes Severn Council have been identified as suitable for the
generation of wind energy.
Council determined it necessary to have Development Control measures to ensure
Council has policy to control or guide proposed wind farm developments, to allow
better guide decision making on such proposals for the community and developers.
Council supports the notion of alternate energy sources such as wind energy
generation. Wind farms have been identified in the Glen Innes Severn Council Economic
Development Strategy 2008 2010 as potential developments for the area.
Where visible from a non related dwelling or immediate surrounds a wind farm
development shall not be located within 15 times the blade tip height or 2kms (which
ever is the greater) of any dwelling not associated with the development or 15 times the
blade tip height or 2kms (which ever is the greater) from a reasonable, practical and
suitable dwelling site on any lot that has been created for the purpose of a dwelling.
Where turbines are proposed to be significantly higher than such properties or dwellings,
or where the turbines will dominate the immediate view from the dwelling or dwelling
lot, increasing these separation distances is recommended.
4.9.3 N EWENGLANDLOCALGOVERNMENT
A community wind farm has considerable scope to be in alignment with several New
England Local Government objectives and plans:
Armidale Dumaresq Council's Domestic Energy Committee passed a motion of
support which is now being considered by the full Council;
Uralla Shire Council's Mission Statement includes the priority to become a carbon
neutral community and a lighthouse model for local mitigation and adaptability
to Climate Change;
Guyra Shire Council's Community Strategic Plan includes an objective to provide
information and support for positive action on climate change; and,
Walcha Council's Deputy Mayor, Kevin Ferrier, attended the community forum
and made clear Council's identified interest in wind power development as
reflected in their business plans.
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4.10TECHNICAL& OTHERPARTNERSHIPS
4.10.1 COMMERCIAL& TECHNICALPARTNERSHIPS
Two commercial sites have been identified as possibilities for on-site generation which
could have significant financial advantages due to netting out their electricity costs at a
retail cost rate (as distinct to the normal situation of selling generated electricity at a
much lower wholesale rate).
Two possible partnerships are being investigated with commercial developers with a
view to incorporating a distinct community component or stage to their wind farm.
Dozens of commercial consultancies, developers and wind turbine distributors and
manufacturers have made contact offering to work with New England Wind.
With regard to future requirements for expertise, the finding from this Study is that
professional and technical partners should be sought and utilised for New England Wind
to the degree that necessary expertise is not available already within the community.
The large professional services, research and education base of the New England brings
a depth and calibre of expertise which is unique in regional Australia, most symbolised by
the presence of The University of New England.
At the time of writing three commercial wind farms are in the process of obtaining formal
NSW Planning approval and one (Glen Innes) has finalised the process. The combined
potential capacity is over 850 MW and all applicants have carried out detailed
monitoring, environmental and financial assessments, community information sessions
and community consultations. The latter consultations have been undertaken with
varying levels of commitment and success.
The four commercial developers have each expressed in-principle support for a
community cooperative wind farm, recognising that general support for such an
enterprise could translate to greater support for well sited wind farms generally.
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It is likely that New England Wind would be able to take advantage of technical and
construction capacity brought to the region by those commercial operations, with two
of the proposed wind farms likely to be at site preparation stage before the community
wind farm has completed its full resource assessment.
4.10.2 LOCALGOVERNMENT
Four local Councils supported the Study:
Armidale Dumaresq Council provided use of the Armidale Town Hall for the
Sustainable Living Armidale hosted community forum and Deputy Mayor Jim
Maher officially opened the forum;
Uralla Shire Council provided use of the Uralla Community Centre and General
Manager Tom O'Connor officially opened the forum;
Walcha Council's Deputy Mayor, Kevin Ferrier, attended the community forum;
and,
Glen Innes Severn Council's Mayor, Steve Toms, opened the forum which was also
attended by General Manager Hein Basson.
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Illustration 14: Deputy Mayor, Councillor Jim Maher, Armidale Dumaresq Council, Armidale
Community Forum
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4.10.3 FUNDINGBODY~ NEWENGLANDRENEWABLEENERGYPRECINCT, DECCW
The NSW Government's New England Tablelands Renewable Energy Precinct's support
and contribution to the New England Wind Study has been significant and valuable, withhighlights including:
Numerous joint initiatives with shared promotion and presentations such as the
Landholder Wind Forum, UNE Round Tables and Northern Region NSW Aboriginal
Land Councils;
Access to NSW Government educational materials (Wind Fact Sheet, Community
Attitudes Research, Greenhouse Gas Savings) and facilities for meetings;
Confidential use of the 3Tier wind mapping data for early analysis of prospective
wind farm sites;
Research into wind power carbon-offset modelling and pricing;
Access to Community Attitudes Research to undertake further analysis of New
England Tablelands respondents; and,
Attendance at nearly every public event and Consortium meetings when
appropriate.
This has strengthened the Study's credibility in engagement with key stakeholders, local
Councils, landholders and investors.
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Illustration 15: Joint a-frame for public displays (front & back)
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4.11CHALLENGES& RISKS
Community renewable energy projects such as New England Wind have a different risk
profile to commercial developments, with greater ease in gaining community support
and planning approval, though greater complexity for capital raising and accessing
professional/technical expertise.
The following risk framework reflects challenges and risks particular to New England Wind.
Each planning forum identified challenges and risks. Four broad categories were
identified:
1. Turbine siting and related environmental and public health issues. These risks are
particularly addressed by the siting and environmental requirements detailed in
the design principles in the following section of this report;
2. Raising funds. This concerned the quantum of funds required as well as receivingfunds in a timely manner, exposure to political and policy uncertainty and being a
small player in a competitive corporate field;
3. Governance. Getting the structure right was seen as being critically important,
particularly for community decision-making, government and larger investors and
commercial project partnerships; and,
4. Technical. The need for professional boards and management, accessing the
necessarily technical wind expertise and assessing issues such as turbine and site
selection and grid connection.
Negative experiences from current wind farm proposals in the region have been
included and usefully provide a more robust and comprehensive set of priorities to
ensure broad-based community support and acceptance.
Well some of us have other ideas about benefits and advantages. I think
its a shame here tonight. I think its tainted with the commercial [wind
farms] but some of us actually are interested in our particular areas for a
community wind farm so I guess Id like to state that point of view at this
stage in the game.
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Traditional wind industry risks need to be integrated with the framework and include:
planning and development;
project financing, investment, energy and electricity price, inflation and interest;
commissioning, operations, technology, infrastructure and grid connection; environment (flora and fauna, noise, flicker, aesthetics, construction,
decommissioning) and cultural (sites of significance, native title);
governance;
contracts and suppliers;
policy, regulation and political;
wind resource; and,
community/social licence risks.
The following table consolidates the identified challenges and risks for a New England
Tablelands community owned wind farm and details relevant strategies based upon the
recommendations and design principles outlined.
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Challenges & Risks Strategies to Address, Avoid, Mitigate
Maintaining the momentum and achieving well-
informed community decision-making and
addressing misinformation
Relationships with partners & key stakeholders
Community tire of story or initiative
Scale of initiative and the risk of burnout Responding to magnitude of a bold vision for
energy independence
Develop and implement comprehensive social marketing education
campaign
Maintain profile & communication with community
Continue to include community in decision-making
Publish wind monitoring statistics in the local paper every week
Keep a regular eNEWs
Delivering benefits to the wider community (beyond
direct participants such as investors, members,
landholders, employees)
Develop and Implement Community Benefit Plan with strategies such as
discounted electricity and energy education and efficiency already
identified as likely to be of wider benefit
Long-term role for New England Energy is to address energy issues for
community and region as a whole
Raising financial capital in timely manner, power
purchase agreement, volatility of renewable energy
market, competition for sites, finance, etc., global
economic conditions, decommissioning costs
Development of strong local community networks to support marketing and
capital raising
Recommended use of hybrid governance model to attract larger investors
Professional partnerships with expertise particularly site assessment and power
sale agreements
Investigation of direct sale of electricity to local users (Hepburn Wind are
developing an arrangement with Red Energy to be able to sell branded
'Hepburn Wind' electricity and better attract and retain customers) Ensure adequate provisions are made for decommissioning or refurbishment
of turbines
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Challenges & Risks Strategies to Address, Avoid, Mitigate
Accessing necessary professional and technical
expertise Numerous commercial parties already identified as willing to work with New
England Wind
Partnership with Embark and support from NSW Renewable Energy Precinct
program
Existing professional service base in New England with commercial wind
development likely to bring further opportunities for professional services and
partnerships Negotiate management fees in shares to reduce working capital
requirements
Carpet-bagging of co-operative Specific provisions in New England Energy Constitution
Saleability of shares Clear constitutional rules for sale and transfer of shares
Strong business model and performance to ensure share value
Maintain Register of Interest for prospective purchasers
Turbine siting Issues ~ noise, heritage, property values,
habitat and wildlife, grid capacity, etc Comprehensive design principles developed for turbine siting requirements
integrating industry standards with community requirements
Prospective list of 110+ landholders interested to host turbines
Professional and transparent feasibility study of community wind farm site to
ensure integrity with design principles and siting issues
Political uncertainty, unpredictability and
interference (eg. County Councils take-over,
electricity utility sell-off)
Strong community governance model and majority ownership
Maintain strong working relationships with key agencies and Members of
Parliament Involvement of Local Government in governance and with regards to
planning and regulation matters
Continue to build community networks and support for New England Wind
and clean, renewable energy
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Challenges & Risks Strategies to Address, Avoid, Mitigate
Market Forces take-over, unhealthy profit
dominance, investor dominance Strong community governance model and majority ownership
Cap placed on maximum investor (5-10%) and anti-takeover provisions in the
Constitution
Defined principles regarding financial return (8-10%) and Community Benefit
Plan
Green-washing and environmental integrity Strategic positioning to address moral or ethical offsets only (ie. not financial
and legal offsets) Transparent and professional disclosures in the Business Case regarding
environmental issues, performance comparisons with other energy sources
(including returns on embedded energy)
Design principles for turbine siting address high environmental standards as
well as industry standards for due diligence
Organised wind opposition, being locally based and
community led we are more exposed to strident
opponents. Potential for work to date to have been
biased by mostly supportive participants
Work to date has been open to all community members and stakeholders.
Negative opinions have been expressed in both the Survey and during the
Forums, particularly at Glen Innes
Concerns raised to date have been particularly about turbine siting issues;
ensuring they do not cause community conflict and that they have the
support of affected neighbours
The design principles have incorporated these risks and issues.
Continue to include community in decision-making and high standard of
transparency and accountability
Develop and implement comprehensive social marketing educationcampaign
Maintain profile and open communication with community
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4.12INVESTMENT& INVESTORPROFILING
$5m of indicative investment was identified in a very short time.
Several local organisations have indicated in principle interest in making larger
investments which would total $2m.
300 respondents to the survey expressed their willingness to invest $3m in total.
These financial findings are significant given that this Feasibility Study precedes being
able to provide any firm details about governance, business and financial models or
likely returns. Many investors and community members indicated willingness to invest
subject to receiving such details.
Would need to examine the business case before investing. Although I
would not be that worried about high returns, I would not like to take a high
risk on any investment.
Willingness to invest was specifically covered at each of the nine forums and the
overwhelming majority of participants raised their hand at the end of the Forum to
indicate their support for the establishment of a community wind farm and their
willingness to consider investing in such an initiative (though no assessment of the
amount of investment was made).
The reasons and motivations for investors ( below) echo the pragmatic views reflected in
the design principles ~ that is, potential participants are seeking to balance financial
returns, essential to the viability and sustainability of the wind farm operation, with their
considerations for energy generation and security, climate change and clean energy,
economic development, community leadership and public health and safety.
NEW ENGLAND TABLELANDS COMMUNI