The information below is designed to give simple answers to some common questions.
Who are the main players in all this?
Energy4All Ltd is a not for profit company set up by the successful Baywind Energy Co-op in Cumbria to help other communities own a share in renewable energy projects. Enery4All will provide management services to support the Spirit of Lanarkshire co-op throughout its operation.
Falck Renewables Wind Ltd is a wind energy subsidiary of the Falck Group, an Italian company with headquarters in Milan. Falck signed a framework agreement with Energy4All to develop co-operatives on a number of wind farm sites in Scotland. The first project launched was Boyndie followed by Isle of Skye, Great Glen and Kilbraur. Spirit of Lanarkshire will be the fifth co-op of this type to be launched.
The Spirit of Lanarkshire Wind Energy Co-operative Limited was created by Energy4All and is run by a board of directors from South Lanarkshire and from Energy4All who have been appointed to launch the Share Offer. The current board of directors will serve for a term of two years, thereafter, directors of the Co-op will be elected by the members.
How does a Co-op work?
Co-ops are run on the basic principles of democracy, fairness and ethical behaviour.
Everyone who invests in the Spirit of Lanarkshire Co-op becomes a member.
Each member has a single vote at General Meetings of the Co-op.
In other respects, the Co-op is like any business and seeks to run efficiently and profitably.
Where are the wind farm sites?
The Nutberry wind farm is located in Clydesdale, SouthLanarkshire, 6km south west of Coalburn. The West Browncastle wind farm is located in Sandford/Upper Avondale community council area in South Lanarkshire, about 9km west of Strathaven.
How much did the Co-op raise?
For the Nutberry site £1 million was raised.
For the West Browncastle site £1,710,000 was raised.
Total raised £2,710,000.
How much are the shares?
Shares are £1 each. There is a now legal maximum of £100,000 per investor and for administrative reasons the Co-op has set a minimum investment of £250. However this limit came in after the Spirit of Lanarkshire share offer therefore the limit was £20,000.
When will I recieve my first share interest payment?
If you purchase shares in the 1st tranche by the closing date of 20 Setember 2013 the first payment of share interest will take place approximately August 2014 after the AGM in July.
If you purchase shares in the 2nd tranche by the closing date of 21 March 2014 the first payment of share interest will take place approximately August 2015.
Tax Relief on Shares
There is no EIS tax relief on purchasing shares in The Spirit of Lanarkshire.
When did the offer close?
Nutberry closed on 20th September 2013 and West Browncastle closed on 21st March 2014.
What is the minimum return I shall receive?
The annual amount available for payment as interest on shares is divided by the number of shares in issue to give:
If the maximum capital sum is raised a projected pre-tax average annual return rate of approximately 9.92% over a 25 year investment period based on P50 output projections.
Based on P90 output projections the pre-tax average annual return rate is projected to be 8.56% over a 25 year investment period.
P90 & P50 predictions
P50 measure has a 50% chance of being exceeded when averaged over any 10 year period.
P90 measure has a 90% chance of being exceeded when averaged over any 10 year period.
When will I get my first share interest payment?
Payments must be approved by Co-op members at the AGM. The AGM will take place in July 2014 after the close of the Co-op’s financial year on 31st March. Therefore the first payments will probably be in August 2014 and regularly at annual intervals after that.
Will I get my money back?
Under the terms of the Revenue Sharing Agreement, all capital will be repaid by Falck at the end of the 25 year life of the project.
After 5 years, the Rules allow for up to 5% of the share capital to be redeemed each year subject to Board approval.
What happens if I die?
A member’s shares in the Co-op are treated just like any other asset if someone dies.
Will the Co-op get involved in other activities?
Spirit of Lanarkshire will be paying its proportionate share to the community fund, as part of the operating expenses for its stakes in the wind farms. In addition, if returns to Members exceed those shown in the P50 projections in the Offer, the Board will consider asking Members to donate part of their return to local good causes.