Aberdeen Community Energy’s (ACE) flagship community renewable energy project, The Donside Hydro, has launched a share offer which it hopes will raise GBP500,000 by targeting a 7 per cent return for investors.
On track to complete construction and begin generating electricity by October 2016, The Donside Hydro is aiming to create a sustainable income for the local community by selling clean, renewable electricity to the national grid.
The project is expected to generate many thousands each year for a community fund and enough electricity to power the equivalent of around 130 homes annually.
ACE has developed a detailed guide to the share offer, which includes full financial projections and example investment scenarios.
The repayment of capital investment will take place annually over 20 years, beginning in year two. Investors will receive a portion of their capital plus the interest each year, until the amount is fully repaid in year 20. Projections show that for an investment of GBP1,000, the total return over a 20 year period would be just over GBP2,500.
Sinclair Laing, founding director of ACE, says: “We are so pleased to have finally launched the share offer. Construction began in early June and the Donside Hydro is taking great shape, but our work is far from over. We are hoping to raise GBP500,000 over the next five weeks, which seems quite daunting but we’ve seen similar projects across Scotland raise similar amounts in the same time frame, so we know it can be done.
“We’re calling on people from communities across the UK to support us. If you are passionate about green energy and sustainable communities or even if you’re just looking for a solid return on your investment, then please take some time go through the share offer document and get in touch to find out more. The minimum investment is GBP100 and the maximum GBP100,000, so we hope to attract a wide range of investors.”