Ynni Anafon Energy launches share scheme

The community of Abergwyngregyn in Snowdonai has formed an Industrial Provident Society, Ynni Anafon Energy, to build and manage a 270kw hydroelectric plant on the river Anafon in the foothills of the Carneddau mountains. This will be the biggest community owned hydro scheme south of the Scottish border. On 13 September it launched its share scheme and within 10 days had raised over £100,000. Coinciding with the start of Community Energy Fortnight on 13 September, the launch also took place a month before Good Money Week, which runs from 19 - 25 October.

The village chose an Industrial Provident Society as their vehicle because of its appropriateness for a community scheme and for those seeking an ethical investment. As an IPS Ynni Anafon Energy exists for the purpose of community benefit and as such is able not only to offer a favourable rate of interest, but also enable investors who are UK tax payers to benefit from the tax advantages offered by the government Enterprise Investment Scheme. Ynni Anafon Energy is raising £1.25 million for the project via the share scheme and a bank loan. Shares are now available to investors aged 16 and over. Shareholders will earn interest on their investments and, because it is an IPS, will have one vote each regardless of whether they invest the minimum sum of £250.00 or the maximum of £50,000.

Ynni Anafon Energy will repay the bank loan over 15 years. During this period the community is estimated to net £30,000 per year from the Anafon Hydro. For years 16 - 20, while FIT is still available, income for the community will rise to approximately £80,000 per year. Thereafter, it is expected to stabilise at £20,000 - £40,000 annually.

By forming an IPS, Ynni Anafon Energy will benefit the local community. Electricity generated by the Anafon Hydro will be sold to the grid at a favourable rate and will also benefit from the government's Feed-In Tariff (FiT) scheme. Surpluses made by Ynni Anafon Energy will be donated to a village charity and boosted by the tax efficient Gift Aid incentive.

Speaking of the share scheme, Gavin Gatehouse, one of the three founder-directors of Ynni Anafon Energy, said: "The Anafon Hydro is an excellent opportunity to invest in a profitable business and support Abergwyngregyn. The structure of the IPS keeps control of the organisation out of the hands of large organisations and, instead, channel funds into village causes and the wider community."

Planning and other consents for the Anafon Hydro have been granted and building is due to start early in 2015.

For full information in the Anafon Hydro project and share scheme, visithttp://www.anafonhydro.co.uk.

For a video of a drone flight over the pipeline route, go tohttps://www.youtube.com/watch?v=E90loEq9_Eg

For details on Community Energy Fortnight, visithttp://ukcec.org/community-energy-fortnight

To learn more about Good Money Week, go tohttp://goodmoneyweek.com/

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Editors' notes

There are 100 homes in the village of Abergwyngregyn, which lies on the northern edge of the Snowdonia National Park

The village is home to approximately 230 people

The Anafon Hydro will take£1.25 million to build

Gross income is estimated at £200,000 per year

The hydro is a high head run of river scheme. A small weir, approximately 1 metre high, will be built across the Anafon River. Underground pipes will then take the water down the hill, until it reaches a turbine. This will create the electricity which will transfer by cables to the National Grid. The water is then returned to the river.