Developmental Social Welfare: transforming social services in SA Lucy Jamieson.
Transforming communities through social investment€¦ · Transforming communities through social...
Transcript of Transforming communities through social investment€¦ · Transforming communities through social...
![Page 1: Transforming communities through social investment€¦ · Transforming communities through social investment sustainable energy – social investment – community – csr Funding](https://reader035.fdocuments.net/reader035/viewer/2022071219/6054291fad515f2a55159510/html5/thumbnails/1.jpg)
Transforming communities through social investment sustainable energy – social investment – community – csr
Funding Cleantech Conference, Rushlight Show 2014 Pure Leapfrog registered Charity No. 1112249
Company No. 05534395 registered in England & Wales
Funding community energy schemes
![Page 2: Transforming communities through social investment€¦ · Transforming communities through social investment sustainable energy – social investment – community – csr Funding](https://reader035.fdocuments.net/reader035/viewer/2022071219/6054291fad515f2a55159510/html5/thumbnails/2.jpg)
Pure Leapfrog mission
Pure Leapfrog is the leading provider of social investment and professional support to community energy projects in the UK. We are a business led charity which works in partnership with Government, investors and communities. We bring together affordable finance and accessible expertise. Finance is secured through a credit facility from Big Society Capital. Expertise is provided by our professional partner network. Our mission is to ensure that community energy becomes a significant part of the sustainable energy mix in the UK.
![Page 3: Transforming communities through social investment€¦ · Transforming communities through social investment sustainable energy – social investment – community – csr Funding](https://reader035.fdocuments.net/reader035/viewer/2022071219/6054291fad515f2a55159510/html5/thumbnails/3.jpg)
90+ community energy projects supported to date
Pure Leapfrog track record
Fenham Leisure Centre Loan Capital – Big Society Capital, Project Sponsor – British Airways
Repowering London Professional Services
Simmons & Simmons, HSBC, BDO
Triple bottom line benefits of our loans Financial return: 4.62% Carbon reductions: 20kg per £1 loaned out Net community benefit: >£5 per £1 loaned out
Ham Hydro Professional Services – Norton Rose,
Grant Thornton
![Page 4: Transforming communities through social investment€¦ · Transforming communities through social investment sustainable energy – social investment – community – csr Funding](https://reader035.fdocuments.net/reader035/viewer/2022071219/6054291fad515f2a55159510/html5/thumbnails/4.jpg)
Why community energy?
Stakeholders for sustainability
– Converting NIMBYs into YIMBYs
Economic multipliers
– For every £1 that Pure Leapfrog lends, over £5 of
net benefit is created in local communities
Creating a new, sustainable energy business
model
– Making power users responsible for power
generation
![Page 5: Transforming communities through social investment€¦ · Transforming communities through social investment sustainable energy – social investment – community – csr Funding](https://reader035.fdocuments.net/reader035/viewer/2022071219/6054291fad515f2a55159510/html5/thumbnails/5.jpg)
Current state of play
600 community groups with a strong interest in renewables – 150-300 developed or developing a project
66MW generating, >200MW in development
Scotland – majority of capacity, charities, projects funded by debt and grant
Number of Industrial & Provident Societies is very rapidly growing
£17 million raised through 40 share offers from 10,000 investors
![Page 6: Transforming communities through social investment€¦ · Transforming communities through social investment sustainable energy – social investment – community – csr Funding](https://reader035.fdocuments.net/reader035/viewer/2022071219/6054291fad515f2a55159510/html5/thumbnails/6.jpg)
2020 ambitions
780 community energy companies
– £1.5 billion raised from over 550,000 members
– £2 billion raised in debt
3GW of wind, solar and hydro
– 14% of total capacity for these technologies
– 1.4% of total UK electricity consumption
£1.3 billion to be re-invested back into
communities by 2040
– 12 times greater 100% commercial model
Community Renewable Electricity Generation: Potential Sector Growth to 2020, Peter Capener for DECC, January 2014
![Page 7: Transforming communities through social investment€¦ · Transforming communities through social investment sustainable energy – social investment – community – csr Funding](https://reader035.fdocuments.net/reader035/viewer/2022071219/6054291fad515f2a55159510/html5/thumbnails/7.jpg)
Community energy as a disruptor?
In Germany, 46% of renewable energy is
owned via cooperatives or individuals
Half of local energy distribution grid also
owned by municipalities and cooperatives
Conventional utility business models under
pressure
– e.g. RWE cut dividends by 50%, divesting over
3,000MW of capacity, cutting capital spending
“Europe’s electricity providers face an existential threat”
The Economist
![Page 8: Transforming communities through social investment€¦ · Transforming communities through social investment sustainable energy – social investment – community – csr Funding](https://reader035.fdocuments.net/reader035/viewer/2022071219/6054291fad515f2a55159510/html5/thumbnails/8.jpg)
Barriers to debt finance
Conventional debt providers reluctant to
provide non-recourse funding for
community energy projects <£2-5 million
– Due diligence & transaction
costs too large
– Out of comfort zone – unfamiliar
with corporate structure
– Risk – little or no trading history,
role of volunteers, balance sheet
of suppliers, warranties
![Page 9: Transforming communities through social investment€¦ · Transforming communities through social investment sustainable energy – social investment – community – csr Funding](https://reader035.fdocuments.net/reader035/viewer/2022071219/6054291fad515f2a55159510/html5/thumbnails/9.jpg)
Aggregation
Bundling projects into portfolios of the right
size and risk/return profile
Components of an aggregation strategy
1. Reduce origination and
transaction costs
2. Risk management
techniques appropriate
for community energy
3. Build capacity of
community energy
groups
![Page 10: Transforming communities through social investment€¦ · Transforming communities through social investment sustainable energy – social investment – community – csr Funding](https://reader035.fdocuments.net/reader035/viewer/2022071219/6054291fad515f2a55159510/html5/thumbnails/10.jpg)
Pure Leapfrog loan portfolio
£989,062 committed to 21 projects with 2.365MW of capacity – PV (16), biomass (3), solar thermal (1), LED (1)
– Charities (10), IPS (9), school trust (1), CLG (1)
– Community centres (10), fuel poverty (3), schools (4), other (4)
Average yield = 4.62%
Average loan-to-value = 41.19%
Lifetime carbon reductions = 19,294 tonnes
Lifetime net community benefit = >£5 million
![Page 11: Transforming communities through social investment€¦ · Transforming communities through social investment sustainable energy – social investment – community – csr Funding](https://reader035.fdocuments.net/reader035/viewer/2022071219/6054291fad515f2a55159510/html5/thumbnails/11.jpg)
Next steps
Launch new £10 million fund
Building pipeline – Community “buy-in” to commercial
projects
– Collaboration with local authorities
– MOUs with community energy groups
Retail & institutional investment products – Senior debt, social investors, crowd
funding, green bond
![Page 12: Transforming communities through social investment€¦ · Transforming communities through social investment sustainable energy – social investment – community – csr Funding](https://reader035.fdocuments.net/reader035/viewer/2022071219/6054291fad515f2a55159510/html5/thumbnails/12.jpg)
Robert Rabinowitz, [email protected], 07939-884458
Eden House, 23-25 Wilson St, London, EC2M 2TE
Tel: +44 (0)20 7825 4141
www.pureleapfrog.org
Pure Leapfrog registered Charity No. 1112249
Company No. 05534395 registered in England & Wales