Lighthouse Community Energy Project
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The Lighthouse Community Energy project is designed to increase the uptake of renewable energy and energy efficiency installations in the Newcastle and Hunter region by assessing and developing an innovative business model, seeking feedback on it from the community and developing a portfolio of local solar and energy efficiency installations.
This project builds upon the outputs, experience, and lessons learnt from the Lighthouse Community Renewable Energy project (initiated under a grant provided to CLEANaS by the NSW Office of Environment and Heritage), and has 3 key components:
The current business model used for community investment in individual solar installations restricts to 20 “sophisticated, experienced or professional investors” provides little opportunity for the general community to invest. By lowering the investment threshold and removing the limitation on the number of investors, the new model will remove the restrictions on everyday members of the community, and will enable the community at large to invest in projects that they are passionate about for as little as say, a few hundred dollars. Those on lower incomes will have the opportunity to benefit financially by investing in solar panels on their local community centre. The target investor for these community financed commercial scale solar installations is the small community investor. The target host for these schemes are community-oriented enterprises (e.g. not-for-profits) and community services, which are technically feasible sites but for other reasons are unable to access commercial financing. |
Background
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CLEANaS was a successful recipient of a Community energy grant as part of the NSW Government’s Growing Community Energy (GCE) grants program. The aim of the GCE grants program is to build the community energy sector in NSW by empowering communities to develop and own renewable energy projects and is providing start-up funding to 19 community energy groups, helping to create community energy projects with viable business models for state-wide adaptation.
The $40,000 grant, administered by the NSW Office of the Environment and Heritage will fund the Lighthouse Community Energy project. This project will establish a model of community finance that will help other community enterprises to develop viable, up-scaled renewable energy projects. |
Community Clean Energy Bonds
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The Lighthouse Community Energy Project is supported by the NSW Office of Environment and Heritage to develop an effective and scalable community energy financing program by partnering with a local financial institution which issues Community Clean Energy Bonds (CCEB) to retail investors.
This project seeks to use a novel and highly innovative method to make it easier for everyday members of the community to invest in a portfolio of community energy projects that they are passionate about. CCEB’s are a form of retail bonds with a fixed maturity date and earning a fixed rate of interest, certified under the global Climate Bond Standard. Money raised through the issue of CCEB’s can then be used for loans or leasing finance to government, commercial and other organisations, such as community not-for-profit organisations, to fund investment in clean energy such as energy efficiency and renewable energy installations. |
Output 1 - An effective community energy financing mechanism
BUSINESS CASE
The Business Case on bank/credit union supported investor management model (including economic analysis of other potential models) is provided in order to:
● identify the opportunities that exist in resolving current community energy
hurdles,
● analyse the relative merits to stakeholders of two identified business models
that could be applied to the sector,
● identify the establishment costs required, benefits, and exposure of the
community finance models, and to
● activate, seek feedback and broad acceptance from the interested
stakeholders to proceed with the project and participate in the further
development and implementation of the recommended solutions.
The Business Case on bank/credit union supported investor management model (including economic analysis of other potential models) is provided in order to:
● identify the opportunities that exist in resolving current community energy
hurdles,
● analyse the relative merits to stakeholders of two identified business models
that could be applied to the sector,
● identify the establishment costs required, benefits, and exposure of the
community finance models, and to
● activate, seek feedback and broad acceptance from the interested
stakeholders to proceed with the project and participate in the further
development and implementation of the recommended solutions.
| lighthousecommunityenergyproject-businesscase-signed.pdf |
Output 2 - Engaged community as investors and project hosts
Project Presentation
This is the presentation CLEANaS made at the Local Energy & Microgrids Conference.
Output 3 - A critical mass of viable and appropriate project sites identified and prepared for implementation
POTENTIAL VALUE ADDING MEASURES - FEASIBILITY STUDIES
CLEANaS is considering possible mechanisms which could add value to the portfolio of prospective projects by improving financial viability. This includes Virtual Net Metering, which enables aggregation and peer to peer trading of electricity; and Environmental Upgrade Agreements, which remove barriers for financing mechanisms for commercial buildings
CLEANaS is considering possible mechanisms which could add value to the portfolio of prospective projects by improving financial viability. This includes Virtual Net Metering, which enables aggregation and peer to peer trading of electricity; and Environmental Upgrade Agreements, which remove barriers for financing mechanisms for commercial buildings
| potential_value_adding_measures_–_feasibility_study_–_environmental_upgrade_agreements.pdf |
| potential_value_adding_measures_–_feasibility_study_–_virtual_net_metering.pdf |