Summary  & Recommendations

Business structure for the proposed project 

While the body of work undertaken during this project looked at Energy modelling. It would be prudent have some idea of how one would bring a project of this nature to fruition. 

Figure 1 above shows details the proposed business structure. 

While significant work was put into estimating the amount of self consumption. The cost of a bespoke behind the meter distribution network was considered financially inviable and as such the team recommends the use of a power purchase agreement provider to facilitate power export. 

Note that if the Special Purpose Vehicle is due to pay the Newmilns Regenration Assoiation (a registered charity) for some purpose i.e. for ground rent or trading using their goodwill that this business structure would incur no profit related taxes.

The primary recommendation of the team would be to install a Hybrid wind, solar and battery storage installation with 0.8 MW of wind capacity 0.2 MW of solar capacity and 0.2 MWh of battery storage as detailed in Scenario 2 in the wind and solar resource section. With locations of these detailed in figure 2. 

This scenario has been chosen as it meets al of the Key Performance Objectives. Moreover, this scenario leaves scope to further develop the battery storage capacity at the old ironworks as battery prices fall and fast response  battery storage for grid balancing becomes more economically viable. 

However, the team would also note that: 

1.  Insulation to mitigate thermal demand should be implanted at a minimum to produce cost and energy savings.

2. A  wind only installation without the redevelopment of the disused ironworks would likely yield a significant profit, assuming philanthropic local landowner involvement.  

3. While our modelling shows it may be possible to fund the development of the old ironworks through the sale of renewable power the time scale required to recoup investment is large. Possible changes in the price of electricity make a guarantee of generating a profit across the life time of the installation difficult. 

4. It should be noted that small scale renewable energy projects are frequently struggle to generate profit. If the funding could be secured a significantly larger multi-megawatt project would be more likely to produce a profit and yield greater options for reinvestment in the local community.