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Tuesday, 10 October 2006 |
The capital set up costs of the project would be
funded by a mix of commercial loans, grants and redeemable shares. TREL has had
positive responses from several commercial lenders who support community
renewable energy projects. Typically
banks will lend up to 70% of the cost of a community turbine project.
A bank would have a charge over
TREL's assets, ie the turbine. The aim would
be to pay off any commercial loans at a fixed rate of interest over 10
years. It is hoped that the balance of
the funding will come from grant and equity investment. A detailed grant application to the Big
Lottery Fund is being prepared as well as other applications. Highland and Islands Community Energy
Company has a specific fund for investing in shares in renewable projects. This could be in the form of a special type
of non-voting share, redeemable after say, 10 years. The shares would have a dividend payable to HICEC. The Trust and TREL would not have to give up
control of the project because of these outside investments.
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