Drumlin Wind Energy’s share offer gives those hoping to get involved in renewable energy projects an ideal opportunity to get involved in ethical investments.
The Northern Irish co-op has planning permission to build five 250 kw turbines in five separate location in the North East. Drumlin Wind Energy also has established ROC payments and grid connection which should make the project financially viable for the long term. The co-op assisted by the highly successful British energy4all co-op group is now seeking to raise the finance necessary to build the turbines through it’s share offering. Rates of return on investment over the 20 year lifespan of the project are 7.5% without EIS and 10.3% with EIS , although this starts off lower initially with 3.5% (5% with EIS relief) in year 1 (2014).
Shares in the co-op will be open to all, but NI residents will get precedence if there is over subscription. Shares cost £1 per share with a minumm investment of 250 shares and a maximum of 20,000 per individual. For NI residents the scheme qualifies for tax relief, residents of the Republic investing large sums would be advised to discuss the tax issues with an accountant. Drumlin intends to raise a minimum of £2.1m to enable it to construct a core project of three turbines, but ultimately hopes to raise the total of £3.8m necessary to construct all five. The share offer is officially open until 21st September but will be extended if there is insufficient take-up at that stage.
The share offer from Drumlin offers Irish people a great opportunity to get involved in a renewable energy at the local level. The regulatory system and government support payments in the Republic mean that the kind of returns available at Drummlin are less likely to apply to projects in the 26 counties. Grid connection procedures, REFIT rates and spot prices for wind are all less advantageous in the Republic and make an emphasis on secondary benefits of energy generation more critical. In Drummlin however, the power generation to sustainable income generation is more straightforward.
Drumlin Wind Energy have extensive further information on their website www.drumlin.coop and you can follow the progress of the share offer and the project in general on their Facebook page