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Lael Forest Community Hydro Project

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Lael Forest Community Hydro Project Lael Forest Community Hydro Project Business Plan September 2013 CONTENTS Chapter Pages 1. Executive Summary 3 2. Introduction 4-8 o 2.1 Project objectives o 2.2 Project overview o 2.3 Project development o 2.4 Geography of the site o 2.5 The Ullapool community o 2.5 Project fit with regional and national policies 3. Organisations and Management 9-10 o 3.1 Ullapool Community Trust Ltd o 3.2 Lochbroom Community Renewables Ltd o 3.3 Supporters o 3.4 Working partners o 3.5 Stakeholders 4. Communication strategy 11-12 o 4.1 Public ballot 5. Managing the land 13 6. Financial assessment 14-16 7. Procurement strategy 17 8. Project resources 18 9. Risk assessment register 19 10. Summary of benefits 20-21 o 10.1 Long-term benefits o 10.2 Short-term benefits o 10.3 Educational benefits o 10.4 Sharing knowledge o 10.5 Employment benefits o 10.6 Green energy 11. Project timeline 22 Appendix 1 – Maps Appendix 2 – Ullapool Community Growth Plan and community survey report Appendix 3 – babyHydro preliminary feasibility report Appendix 4 – Ballot result and supporting ballot information Appendix 5 – Letters of support Appendix 6 – Resume of UCT directors Appendix 7 – Memorandum and Articles and evidence of incorporation/recognition 2 EXECUTIVE SUMMARY Over the last 12 months Ullapool Community Trust (UCT) has been progressing the Lael Forest Community Hydro project. If developed the project would establish a significant revenue stream which will support community initiatives and projects in the Ullapool area. The Trust has been seeking to progress renewable energy projects since the development of community-owned wind or hydro schemes was strongly supported by local residents during the consultation for a community growth plan for the Ullapool area. The Lael Forest Community Hydro project was established when the Forestry Commission Scotland (FCS) invited communities to express interest in developing hydro projects on local burns. As a result the Trust was able to secure exclusivity on the Allt a’ Mhuilinn and Allt a’ Bhriaghe for 12 months and appoint consultants babyHydro to carry out an outline feasibility study. This indicated that both burns offer viable locations for small-scale hydro projects. The Trust is now lodging a National Forest Land Scheme application with the FCS which will enable the community to secure the land and to reappoint babyHydro to carry out in depth feasibility study and work up a detailed design. These costs will be primarily 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 Lochbroom Community Renewables Ltd who will be set up as a wholly-owned trading arm of UCT. babyHydro will manage the project with 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 is 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 for each burn is currently estimated between 100-464kW for the Allt a’ Bhraighe scheme and 100-319kW for the Allt a’ Mhuillin scheme. The capital costs for each scheme is estimated at between £500 000 and £1 million while 20 year simple profits will be between £1 million and £3.8 million per burn. All income generated would be retained within the area and used to implement the Ullapool Community Growth Plan and support community groups, initiatives and projects. 3 1. INTRODUCTION 2.1 Project Objectives The key objectives of the Lael Forest 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 the Ullapool Community Trust (UCT) remit area (see appendix 1 for map 5 for area). 2. to increase the production of renewable, low carbon electricity in the UCT area. Achieving the objectives will enable the community to ‘match-fund’ or even self-finance local initiatives and projects that benefit residents. 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 The Lael Forest Community Hydro project will result in two separate, small run-of-river schemes being developed on the Allt a’ Bhraighe and Allt a’ Mhuilinn. 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 new 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 specific focus on implementing the Ullapool Community Growth Plan (UCGP) which is included as appendix 2. A committee will be set up to examine and approve applications for funding from local groups and projects. 2.3 Project Development UCT recently developed the UCGP (see appendix 2) which sets out local issues and opportunities that were identified by residents. It also includes the projects and results that the community want delivered over the next five to ten years. Developing the plan required extensive community consultation, including a survey (see appendix 2 for survey report), open day and various focus group meetings that identified, amongst other things, strong local interest in renewable energy, with specific support for the development of community- owned hydro or wind projects. As a result investigating local options for community renewable energy projects and taking forward opportunities was included as a key priority 4 in the plan. Since the adoption of the plan investigations have been led by a renewable energy focus group (REFG) that was set up during the consultation process. Initially the REFG contacted private landowners to discuss potential partnership projects with limited success. However in spring 2012 the group became aware that the FCS was inviting local community groups to express interest in developing hydro projects on burns and rivers in state-owned woodland. As a result the REFG began examining FCS land in the local area to determine possible opportunities for hydro projects and found the Allt a’ Bhraighe and Allt a’ Mhuilinn in Lael Forest to be the most appropriate locations. The group then expressed interest in the two burns on behalf of UCT to the FCS which was accepted on the 23rd of July 2012. Under the FCS schemes communities are given 12 months to investigate the watercourse(s) and lodge a National Forest Land Scheme (NFLS) application. This gave UCT until the 23rd of July to formalise a NFLS bid. However a three month extension, until the 23rd of October, was agreed by UCT and the FCS which has now been met. If the NFLS application is successful UCT will be given an 18 month option on the burns. At the end of the 18 months UCT will need to decide whether to lease the burns. Once the initial expression of interest was approved by the FCS, UCT contacted Community Energy Scotland (CES) to discuss options for carrying out hydro power feasibility studies. CES suggested a two stage process with a preliminary study carried out to de-risk the project prior to a NFLS application with a more detailed feasibility study carried out during the 18 month option if the burns appear viable and the NFLS application is successful. UCT agreed to this approach and following a tendering process selected babyHydro as the preferred consultant to carry out the preliminary feasibility work. The Trust then secured a Community and Renewable Energy Scheme (CARES) Grant to finance the first phase of investigation work. babyHydro, who have an extensive track record of carrying out detailed feasibility work on small-scale hydro schemes, visited the sites in November 2012 and provided a preliminary feasibility report on both burns to UCT in December 2012. The report (which is included as appendix 3) found that both sites offered potentially viable locations for small-scale hydro projects. These findings coupled to the results of a community ballot (see section 4) which showed strong support for developing the hydro schemes has encouraged UCT to lodge a NFLS application alongside this business plan with the FCS. 2.4 Geography of the site The proposed sites for the Lael Forest Community Hydro project are two burns within Lael Forest. The burns are around 14 kilometres South of Ullapool on the A835. Both are located between Braemore Hall and the Woodturning Centre (please see map 1 and 2 of appendix 1 5 for location). The burns run parallel to one another with the Allt a’ Mhuilinn around 750 metres north of the Allt a’ Bhraighe. As shown by map 2 in appendix 1 the source of the two burns is upland moorland that is located to the west of Beinn Dearg. This land, which borders the FCS plantation, is designated as a Site of Special Scientific Interest (SSSI) and Special Area of Conservation (SAC). The burns then flow into Lael Forest and down through the steep woodland before crossing beneath the A835 and into the River Broom. Both burns can be accessed via forestry access tracks which lead off from the A835.
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