Morvern Community Hydro Business Plan

Morvern Community Development Company Ltd

Lochaline Harbour Lochaline Morvern PA80 5XT

Tel: 01967 421783 E-Mail: [email protected]

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CONTENTS

Page 1. Executive Summary 3

2. Introduction 4 2.1 Project objectives 4 2.2 Project overview 4 2.3 Project development 4-5 2.4 Geography of the site 5-6 2.5 The Morvern community 6 2.6 Project fit with regional and national policies 6-7

3. Organisations and Management 7 3.1 Morvern Community Development Company 7-8 3.2 Morvern Community Trading Company 8-9 3.3 Supporters 9 3.4 Working partners 9 3.5 Stakeholders 9

4. Communication strategy 10 4.1 Public ballot 10

5. Managing the land 10-11

6. Financial assessment 11-12

7. Procurement strategy 13

8. Project resources 13

9. Risk assessment register 13-15

10. Summary of benefits 15 10.1 Long-term benefits 15 10.2 Short-term benefits 15 10.3 Educational benefits 15 10.4 Sharing knowledge 15-16 10.5 Employment benefits 16 10.6 Green energy 16

11. Project timeline 16

Appendix 1 – Maps Appendix 2 – Morvern Community Growth Plan Appendix 3 – Hydroplan pre – feasibility report Appendix 4 – Ballot result and supporting documentation Appendix 5 – Letters of support Appendix 6 – Resume of MCDC Directors Appendix 7 –Memorandum and Articles MCDC/MCTC

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1. Executive Summary

Over the last 18 months Morvern Community Development Company (MCDC) has been progressing the Morvern Hydro project on behalf of the community. If developed, the project would establish a significant revenue stream which will support various community initiatives and projects in Morvern. MCDC have been seeking to progress a hydro scheme in Morvern since it has been established as one of the priorities in Morvern Community Growth plan.

MCDC started working on Morvern Hydro project when the Forestry Commission (FCS) invited communities to express interest in developing hydro projects on local burns. As a result MCDC was able to secure exclusivity on five potential burns in Morvern for 12 months and appoint consultants Hydroplan to carry out an outline feasibility study. The study has rejected 3 out of 5 potential burns as not viable but found out that the Allt Achadh Forsa and Barr River offer viable locations for small-scale hydro projects.

MCDC is now lodging a National Forest Land Scheme application with the FCS which will enable the community to secure the land and to appoint a consultant to carry out in depth feasibility study and work up a detailed design. These costs will be paid for by a Community and Renewable Energy Scheme (CARES) loan from the Energy Savings Trust.

If the detailed feasibility demonstrates that the project is viable and appropriate it will be developed by Morvern Community Development Company who wholly own its trading arm Morvern Community Trading Company Ltd. Project Officer will be employed to manage and oversee the project on the day to day basis with various contractors employed to supply, install and commission the project.

The schemes will be small run-of-river installations which do not require a dam. On each burn a small weir will divert water into an intake. From there the water will be transported down a buried penstock (pipeline) into a turbine located within a power house. The water will then be returned to the burn.

The power output of Allt Achadh Forsa is estimated between 78kW and 171kW and 500kW and 1100kW for Barr River. The capital build costs are estimated between £675K and £1.1m and £2.8m and £4.1m respectively while Nett income is estimated, depending on power installed, to be between £38K and £75K per annum for Allt Achadh Forsa and between about £300K per annum for Barr river. 20 year simple profits will be between £760K and £1.5mln for Allt Achadh Forsa and about £6m for Barr river. All income generated would be retained within the area and used to implement the Morvern Community Growth Plan and support community groups, initiatives and projects.

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2. Introduction

2.1 Project objectives

The key objectives of Morvern Community Hydro project are:

1. to establish a long-term and sustainable income stream which will be used to support community groups, initiatives and projects throughout Morvern. 2. to increase production of renewable, low carbon electricity in Morvern.

Achieving the objectives will enable the community to ‘match-fund’ and self- finance local initiatives and projects that benefit its residents, working towards total financial sustainability of the peninsula. Moreover attaining the objectives will also reduce the area’s carbon emissions and contribute toward the Scottish Government targets of:

- Producing 100% of Scotland’s gross annual electricity from renewables by 2020. - Establishing 500 MW of community/locally owned renewable energy production.

2.2 Project overview

Morvern Community Hydro will result in one or two separate, small, run-of-river schemes being developed on the Allt Achadh Forsa and Barr River. The land would be leased from the Forestry Commission Scotland (FCS). Water will be diverted from the burn into an intake via a weir and then flow down a buried pipeline into a powerhouse where it will power a turbine. The electricity generated will be exported to the grid via power lines connected to the national grid. Water will then be returned to the burns via a tailrace.

The income generated will be used to support local community groups and projects with a focus on implementing the Morvern Community Growth Plan (Appendix 2). It is envisaged that funds will be distributed in the community via Morvern Community Trust, a community benefit charity already set up in Morvern to examine and approve applications for funding from local groups and projects.

2.3 Project development

MCDC developed Community Growth Plan (Appendix 2) which sets out local issues and opportunities that were identified by residents and focuses on the projects and results that the community want delivered over the next five to ten years. Community Growth Plan is a result of several years of extensive community consultation, various open days, meetings and discussions that identified, among other, a strong interest in developing a community hydro scheme.

MCDC became aware that Forestry Commission Scotland (FCS) was inviting local community groups to express interest in developing hydro projects on burns and

4 rivers in state-owned woodland. As a result MCDC began examining FCS land in the local area to determine possible opportunities for hydro projects and found 5 potential burns in Morvern. MCDC expressed their interest in all 5 burns on behalf of the community of Morvern which was accepted, and secured support from Morvern Community Council for potential hydro developments on behalf of the community.

Under the FCS schemes communities are given 12 months to investigate the watercourse(s) and lodge a National Forest Land Scheme (NFLS) application. MCDC secured an extension from FCS for this, due to the fact that MCDC at the time MCDC was in the process of investing in a hydro scheme realised by a commercial developer in Morvern. The community of Morvern became the first community to successfully negotiate a community stake in a commercial hydro development in Scotland.

MCDC carried out a community ballot that determined community support for the development of hydro schemes in Morvern. 282 ballot papers were issued, 160 valid ballot papers have been returned, and the percentage return was therefore 56.7%. 150 people (94.3%) voted in favour, 9 (5.7%) voted against out of 160 valid ballot papers returned. There was one spoilt ballot paper. (Appendix 4)

In the meantime, MCDC secured funding from Community Energy Scotland (CES) in order to carry out an initial feasibility to determine the viability of the 5 burns identified. After a tendering process, the pre – feasibility has been completed in March 2013 by Hydroplan UK and identified 2 burns as the most viable (Appendix 3). MCDC then applied to Local Energy Scotland (LES) for a CARES loan and have received an offer from CARES for the full amount in July 2014.

2.4 Geography of the site

“Morvern is a diamond – shaped peninsula, 40 kilometres from east to west, 23 kilometres from north to south. On the north – east is Glen Tarbert (11 kilometres from Loch Sunart to Inversanda Bay, 100 metres high at the top of the pass), in which the Carnoch and Tarbert Rivers and the lowest two kilometres of the Inversanda River mark the boundary with the rest of the Scottish mainland. Morvern is bounded to the north and north-west by Loch Sunart (20 to 100 metre deep); to the west and south-west by the Sound of Mull (80 to 140 metres deep) and to the south –east by Loch Linnhe (180 to 200 metres deep along the Morvern coast).

There are five areas of high ground in the peninsula. The easternmost includes Morvern’s highest point, , 853 metres. To the south is the chain topped by Bheinn Mheadhoin, 738 metres. To the north is the block which includes Bheinn Iadain, 571 metres and Bheinn na h-Uamha, 464 metres, but whose highest point is Bheinn nam Beathrach, 582 metres. The westernmost is the ridge with Sithean na Raplaich, 551 metres as its high point. The fifth, the ridge in the middle, separating the White Glen from the Black Glen, reaches 476 metres in Bheinn Chlaonleud. Penetrating into Morvern are three sea – lochs. In the north is Loch Teacuis, five kilometres long, 30 metres at its deepest, with the islands of Carna and Oronsay

5 at its mouth into Loch Sunart; in the south-west is Loch Aline, three kilometres long, 40 metres at its deepest and in the south-east Loch a’ Choire (Gairloch), one and a half kilometres long and 30 metres deep.

Between the areas of high ground are four principal valleys. The Black Glen (Gleann Dubh), the White Glen (Gleann Geal) and the Arienas Glen (the inland extension of Loch Teacuis inlet) all drain into the Aline River which flows into Loch Aline. In the other principal valley the River Coinnich flows down to Kingairloch, Loch a’ Choire and so into Loch Linnhe. Apart from these, numerous burns flow directly off the hills straight down to the sea.

Morvern lies at 560 36” North, 50 39” West, thus lying on the north-eastern shore of the North Atlantic Ocean, its climate influenced by the Gulf Stream. In this position the winds and rain being blown over the peninsula from the Atlantic are very significant factors in the shaping of the landscape.”

*Abstract by Michael Brambell, from Exploring Morvern, Volume 2. Publication by Morvern Heritage Society.

2.5 The Morvern community Although it is situated on the mainland, Morvern feels remote. Access to the area is most commonly via the Corran Ferry near Fort William or from Mull via the Lochaline-Fishnish ferry. The population of Ardnamurchan and Morvem is just over 2000 and is concentrated in the north and central part of the area with Acharacle in the west and Strontian in the centre as the main settlements. Lochaline is a small village located on the west side of the entrance to Loch Aline, a sea loch on the north shore of the Sound of Mull. With a population of 302 in 2002 the village is a local centre of population with a pub, hotel, shop, post office, restaurant, petrol station, medical centre, primary school, church, cafe and ferry terminal for the Fishnish ferry to Mull. There are several businesses operating from Lochaline, among which a Dive Centre, 2 scuba diving charter boats, Sports Fishing boat, Stalking game and Sea Fishing is also catered for. The setting of Loch Aline is one of great beauty with the steep shores of the loch largely covered in deciduous woodland and superb views to the hills of Mull and in particular down the Sound of Mull to the hills of Lorne. The entrance to the loch is narrow, subject to strong tides and shallow but once inside the loch is land locked, deep and sheltered.

2.6 Project fit with regional and national policies

The project would complement the Scottish Government’s target for 50% renewable energy by 2020. It is also supported by the Council’s 2006 Highland Renewable Energy Strategy and Planning Guidelines which states – ‘The Council supports the concept of local involvement and ownership of renewable energy projects. Participation of local communities and individuals in renewable energy developments helps to ensure that they are appropriate, that they are supported locally and that their benefits remain to a greater extent within the local community’. The project also fits within Community Growth Plan 6

which supports the development of community renewable energy projects where possible and appropriate.

3. Organisations and Management

3.1 Morvern Community Development Company

The Morvern Community Development Company Ltd (MCDC) is a Company Limited by Guarantee. The Company Number is SC200325 and it was incorporated as such on 28th September 1999. The Company operates as a “not for profit” enterprise, and exists solely to work for the benefit of the Local Community.

The Morvern Community Development Company Ltd emerged from a need to fight for a rural fuel service in Morvern, and has since endeavoured to assist other local community groups achieve their aspirations, and to help develop the capacity and structure of this remote peninsula.

MCDC Aims and Objectives

The MCDC objectives are to create and develop opportunities for inward investment and development for the benefit of all residents of Morvern in terms of:

• Basic Services • Social, cultural and educational facilities • Economic, employment and training facilities and opportunities • Healthcare, community care and day care facilities • Amenity and sheltered housing • Environmental protection and enhancement

The Mission of Morvern Community Development Company is to work solely for the Community of Morvern to create and develop opportunities for:

• Inward investment • Economic development • Development and control of sustainable community assets • Employment, particularly amongst the young • Business opportunities • Affordable housing

Morvern has many community groups that work hard to maintain clubs, services and local facilities. For many years, the area of Morvern has been campaigning and fighting for services. Through working together, the community of Morvern have secured:

• A Community owned fuel station • A Locally owned and maintained Hazelwood and village walk plus new community allotments

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• A Local working community woodlands and rural skills area • A Community run passenger ferry service to Tobermory and Loch Sunart • A Community Bus Scheme • Community allotments • Marina development

MCDC mounted a high profile campaign (ultimately unsuccessful when it re- opened recently) to prevent the closure of the Lochaline Sand Mine. The closure of the mine was a major blow to the Community, with the loss of fifteen good quality jobs. MCDC have constructed and now own and operate a successful marina and harbour facility neighbouring the sand mine.

Other projects currently being pursued by the Company include the acquisition of land for affordable housing and a multipurpose building to incorporate sheltered flats and other community facilities, such as heritage centre and gift shop, as a result of the extensive community consultation carried out by MCDC.

MCDC is working towards more community engagement with local landowners, private and public, to establish more business opportunities and housing in the area.

The activities of MCDC are controlled by a Board of 6 Directors (currently), all of whom are resident in Morvern. The Directors come from a variety of backgrounds and have experience in areas that include Land Management, Business Management, National and Local Government, Law Enforcement and the Legal and Scientific professions. The Board also includes representation from local businesses and the community at large. The Board includes 2 councillors from Morvern Community Council.

Underpinning the above is a commitment from the Company to consult the community, and protect the community’s way of life and the unique environment that this makes possible.

3.2 Morvern Community Trading Company

Morvern Community Trading Company Ltd (MCTC) is a trading arm of Morvern Community Development Company and is wholly owned by MCDC.

The company's objects are:

• To carry on business as operators of Lochaline Harbour pontoons and shore facilities, petrol pumps and other commercial activities. To undertake any trading and business activity and to supply all such ancillary services and facilities as the directors may consider appropriate from time to time;

• To make donations (whether by way of gift aid or otherwise), and/or provide other forms of support, to The Morvern Community Development Company or any other charitable body (and that irrespective of whether the provision of such support advances the interests of the company);

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• To promote the interests of Morvern Community Trading Company Ltd and/or any company which is at the time a subsidiary of The Morvern Community Development Company, in any manner whatever and in particular by paying or discharging the liabilities of such other company or giving any undertaking to do so, by giving any indemnity or guarantee in respect of such liabilities, by granting any charge in security of any such indemnity or guarantee or in security of the payment of money or performance of obligations by such other company or by transferring any assets to such other company or by making a loan to such other company, and in each case either with or without consideration and whether or not any benefit flows to the company other than the promotion of such interests, to the intent that the promotion of the interests of any such other company shall be an object and not a power of the company.

Currently, MCTC has a Board of 2 Directors and a Company Secretary and they work very closely with MCDC Board.

3.3 Supporters

There is a large number of active community organisations in Morvern and a significant proportion of the groups support the hydro project, including Morvern Community Council and local large landowners Ardtornish Estate (Appendix 5). Support has also been offered by Local Energy Scotland (LES) whose staff have visited the site and attended meetings. Moreover LES, formerly Community Energy Scotland, also funded the preliminary feasibility study through their grant scheme.

3.4 Working partners

Hydroplan conducted the initial feasibility on hydro potential in Morvern. They will be asked to tender for a full feasibility. An agreement will need to be reached with neighbouring Ardtornish Estate as part of Allt Achadh Forsa is likely to go through their land. MCDC have given notice to the Estate of their intentions to develop a hydro scheme and is anticipating working with the Estate in terms of arranging a lease agreement. MCDC have notified the neighbouring Lochaline Sand mine of their intention to develop a hydro scheme. The mine do not anticipate that the potential scheme will interfere with existing and future mining operations.

3.5 Stakeholders

MCDC is working with the Forestry Commission Scotland (FCS) regarding a NFLS application. This has included meeting with the NFLS programme manager and the Forest District Manager. If the NFLS application is successful MCDC will continue to work closely with the FCS to ensure that Morvern Community Hydro project fits within the FCS land management commitments. Scottish Natural Heritage, Scottish Water, the Scottish Environment Protection Agency and the Highland Council’s Planning Department will all be involved in any planning application and associated consents.

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4. Communication strategy

Throughout the project MCDC will communicate widely with the community by:

- Information on MCDC website www.morvern.org - Public meetings - Attending meetings of Morvern Community Council - Neighbour notification to those living within 1 mile radius - Information pack has been sent out to every household in Morvern to inform people of what is proposed to develop - Consultation event in the run up to the community ballot to learn more about the project and raise any concerns

4.1 Public ballot

A National Forest Land Scheme (NFLS) application requires a public ballot for a project which will generate over £50,000.00 a year. Morvern Community Hydro is likely to exceed this threshold. As a result MCDC contacted the Highland Council’s Elections Office to administer a ballot of all residents on the electoral roll in Morvern as they all will benefit from the project. MCDC selected the question “Do you support the proposal from MCDC for hydro schemes in Morvern?” and compiled a covering letter and information sheet which was sent to everyone on the electoral roll in Morvern by the Highland Council with a voting paper.

The map of Morvern is included as map 1 in appendix 1 while MCDC’s Memorandum and Articles of Association (Appendix 7) lists all the postcodes within the remit area. A copy of all the paperwork sent out as part of the ballot is included in appendix 4.

The ballot was publicised through the consultation event, posters, flyers, MCDC website and social media. The result of the ballot is listed below and shows very strong local support for the project. Please see appendix 4 for the official ballot report from Highland Council.

Ballot papers issued: 282 Votes in favour: 150 Votes against: 9 Spoiled papers: 1 Total returns: 160 Total yes as % of those who voted: 94.3 % Total returns as % of electorate: 56.7%

5. Managing the land

MCDC will lease the land from the Forestry Commission Scotland (FCS) if the project is found to be viable after detailed feasibility. At this stage MCDC has already held outline discussions with the FCS about how Morvern Community Hydro project can be developed with minimum disruption to forestry operations in the area during both construction and operation. This

10 included MCDC representatives meeting with the Forest District Manager, Michael Hymers. The following points were agreed:

- Key consideration must be given by MCDC to slope stability, drainage and culverts. This will be examined closely during detailed feasibility. - Installing the penstock and new access routes will not mean that FCS has to rewrite the forest plan. - Access agreement will be established that allows MCDC unrestricted access (during construction access would be closed to FCS). This will be written into the lease and is a standard clause. - Native woodland will be planted between the penstock and the burn. - There will need to be crossing points on the penstock for commercial forestry vehicles. This will be examined closely during detailed feasibility. - The hydro schemes will not impact on timber operations or supply.

This highlights that if certain steps are taken the project and forestry operations can operate in harmony. Detailed feasibility will allow specific solutions to be identified while it will also allow close examination of environmental impacts. This will ensure that any potential issues and solutions to be identified and enable MCDC manage the land in a sensitive and sustainable manner.

6. Financial assessment

The preliminary assessment completed by Hydroplan UK (appendix 3) shows that there are a range of output sizes possible on both the Allt Achadh Forsa and Barr river. The options are also shown below in Table 1.

The specific scheme(s) selected will depend on a number of factors including the findings of the detailed feasibility study and capital finance available. Having different options gives MCDC flexibility to develop schemes that are most suitable and viable at the time.

Income will be made up from electricity sales and Feed in Tariff (FIT) payments and clearly the selected option(s) will control what profit is produced. In the assessment below, the FIT rates used are £166/MWh for schemes greater than 500kW £200/MWh for schemes between 100kW and 500kW £241/MWh for schemes between 15kW and 100kW

Since the report was prepared Ofgem has imposed further degression on the FiT rates and these will be reviewed in the future detailed project proposals.

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Table 1. Output options available and financial implications

Scheme 1 – Allt Achadh Forsa Options 1 2 3 3a 4 4a Installed (kW) 78 90 171 100 174 100 power CAPEX £675K £742K £1,085K £917K £1,107K £917K AAEP (MWh) 198 231 439 336 450 341 Tariff £/MWh 241 241 200 241 200 241 Gross £48K £56K £88K £81K £90K £82K income Operation £10K £10K £15K £13K £15K £13K and maintenance Nett income £38K £46K £73K £68K £75K £69K Simple 17.8 16.2 14.9 13.5 14.7 13.3 payback years

Scheme 2 – Barr River 1 1a 2 2a 3 4 5 6 Options Installed (kW) 754 500 784 500 500 500 1058 977 power CAPEX £3,060 £2,727 £3,193 £2,845 £2,695 £2,773 £4,187 £3,908 K K K K K K K K AAEP (MWh) 1943 1594 2021 1624 1461 1502 2727 2520 Tariff £/MW 166 200 166 200 200 200 166 166 h Gross £323K £319K £335K £325K £292K £300K £453K £418K income Operation £32K £28K £32K £28K £28K £28K £48K £45K and maintena nce Nett £291K £291K £303K £297K £264K £272K £405K £373K income Simple 10.5 9.4 10.5 9.6 10.2 10.2 10.3 10.5 payback years

MCDC have secured a £150K CARES loan to take one of the above schemes forward. Interest on CARES loans is charged at 10% per annum however if the project is prevented from preceding due to an insurmountable reason the loan drawn down to that point can be written off. This protects MCDC and the community in the case of a ‘show-stopper’ being identified during detailed feasibility work.

As shown by table 1 the capital costs of the project could be over £4 million. This includes construction costs and the grid connection fee, however at this point it is very difficult to determine how much the district network operator will charge for a grid connection so a high estimation has been included. Grid connection and its implications will be considered early within the detailed feasibility study. The intention is for MCDC to develop the project with loan finance from a bank. In addition MCDC may allow individuals to invest in the project through a community share issue or crowd funding. 12

7. Procurement strategy

There are a number of procurement options available to Morvern Community Hydro project including:

- Design, build, finance and maintain - Design and management - Self-manage

At present the favoured option is design and management. After tendering process is complete, the successful contractor will be appointed to complete the design and management, which will include detailed feasibility. A tender for supply, installation and commissioning will be issued.

MCDC will finance the project and retain ultimate control. Local Energy Scotland will be enlisted to help during tendering and selection. LES will also help MCDC to manage the contractors and the project.

8. Project resources

MCDC has a volunteer board of 6 directors (résumés included in appendix 6), 1 member of staff (1 FTE) and over 100 members. One of MCDC Directors has extensive knowledge and experience of developing hydro projects and has successfully built 2 hydro schemes for his employer and is in the process of building a third one, total output of all three of 2.5mW. MCDC Development Officer is currently working on Morvern Community Hydro, among other projects, but there is scope and funding to employ a Project Officer to work exclusively on potential hydro development in Morvern, once NFLS scheme has been applied for. It is anticipated that the Project Officer will then take the lead on the project with support from MCDC Directors and the working group. MCDC have created a small working group that makes decisions on the project progress. The group consists of current and former MCDC Directors with knowledge, experience and keen interest in developing a hydro scheme in Morvern. A contractor will be appointed for the design and management phase the project, including full feasibility. Energy Saving Trust who administer CARES loans through Local Energy Scotland will also offer invaluable help and experience for the project.

9. Risk assessment register

MCDC have identified several potential risks to the project. Each is further examined in the risk register below:

Risk Probability Impact Overall Mitigation Contingency Score NFLS 1 3 4 Viability of Lobby local application is scheme and politicians refused. community and support has Forestry 13

been Commission identified. Scotland.

Detailed 2 3 5 Preliminary CARES loan feasibility feasibility becomes a identifies already grant. ‘show- carried out stopper’.

Ardtornish 2 2 4 Open MCDC will Estate does discussions progress the not agree the if NFLS is schemes land lease approved within FCS boundaries only. Grid 2 2 4 Contact Lobby local connection district politicians request is network and/or rejected/price operator Community is very high. early to Energy scope Scotland situation Grid 2 2 4 Contact Lobby local connection district politicians upgrade network and/or delayed operator Community early to Energy scope Scotland situation Planning 2 3 5 Informal Appeal permission or discussions consents already held refused. with all stakeholders. Feed-in-Tariff 2 2 4 Schemes Lobby local payments remain politicians change. viable if FITs are reduced by 20%. Finance is not 2 2 4 Open Examine secured discussions other with options potential such as financers at community an early share issue stage to and/or scope crowd opportunities funding.

Capital costs 1 2 3 Ensure input Realistic

14 escalate. from contingency Community funds built Energy into project Scotland costs. during the detailed feasibility and design work.

1 = low risk, 3 = high risk

10. Summary of benefits

10.1 Long-term benefits

Morvern Community Hydro project will generate income for the community of Morvern over a period of at least 40 years and potentially far longer. Income will be used to support projects and initiatives that meet the needs of the community with criteria selected by an independent panel that is elected to manage the income generated by the project. It is impossible to determine what issues will require to be addressed over the coming years and decades, however using a local, elected panel with rotating members will ensure the process is fair, transparent and open and that income is used to benefit the local community.

10.2 Short-term benefits

Initially income will be used for two key purposes: 1. to support the implementation of Community Growth Plan 2. to support community groups and initiatives in Morvern

Community Growth Plan was developed by MCDC in partnership with local residents and will guarantee that revenue is focussed on areas that were highlighted as issues by the community during the plan’s consultation process. The plan will be reviewed every five years ensuring that it is kept up to date over the coming years and that, therefore, funding is used to tackle appropriate, up- to-date issues.

10.3 Educational benefits

The project will involve schools during the detailed feasibility, design and build stage. Interested pupil groups will be encouraged to play a role in these stages and input wherever possible. Education boards will be erected at the powerhouses to explain about the projects, hydro power and how the schemes are benefiting the local community.

10.4 Sharing knowledge

The project’s progress and processes will be closely recorded and documented by MCDC. This will provide future guidance to other communities developing similar 15 projects. Directors, staff and volunteers engaged in the project will also make themselves available wherever possible to visit and attend meetings in other areas, assisting the progress of community hydro initiatives.

10.5 Employment benefits

Morvern Community Hydro project may offer employment opportunities to individuals and companies in Morvern who have been involved in major capital or hydro project previously, should they be successful in the tendering processes. Once commissioned, the scheme will create a part-time job for a local resident to maintain the intakes and turbine houses.

10.6 Green energy

The project will reduce the carbon footprint of Morvern by displacing fossil fuel use with renewable energy production. As there are a number of scheme outputs possible, the exact level of displacement is not yet known.

11. Project timeline

Assuming approval of the National Forest Land Scheme application the timescales for the project timescales are -

Secure CARES loan funding for predevelopment costs Completed Appoint a consultant after full tender process April 2015 Commence detailed feasibility/scoping study May 2015 Begin discussions with possible financers August 2015 Apply for consents (Planning, SEPA, Grid Consent) November 2015 Submit FiT Pre-accreditation application March/April 2016 Complete detailed design work May 2016 Finalise capital for project May 2016 Sign Lease with FCS May 2016 Prepare and issue tenders June 2016 Commence construction July 2016 Commissioning July 2017

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