With a £1.4 million funding boost, including £443 000 from our Renewable Energy Investment Fund (REIF), the Isle of Mull’s community hydro-electric scheme will soon be generating power and profit.
It’s a 400Kw hydro-electric scheme on the Allt Achadh na Moine burn in the Garmony Forest on the east side of Mull. When complete, it will generate enough electricity to power 280 homes, reducing the island’s carbon footprint by 450 tonnes.
Total cost of the project? Over £1 million, and met as follows.
Green Energy Mull raised over £450 000 through a community share offer. Charity Bank lent £500 000. And the Renewable Energy Investment Fund (REIF), administered by Scottish Enterprise on behalf of the Scottish Government, is lending £443 000.
Income will come from electricity sales and feed- in -tariffs , with profits being invested entirely within the communities of Mull and Iona. It is estimated that over the first 20 years of the life of the project, the scheme will generate a turnover of over £5 million, with net proceeds of up to £2.4 million.
Green Energy Mull is exactly the type of innovative project that REIF was set up to support.
Andrew Smith, Head of REIF
Ripe for REIF
Andrew Smith, head of REIF, explains why Mull means so much. “It’s exactly the type of innovative project that REIF was set up to support. By leveraging private and public sector investment, it’s supporting a development with both a strong community benefit and a long term environmental legacy.”
REIF was launched in October 2012 to promote the use of energy from specific renewable sources and drive further investment into key areas of Scotland’s renewables industry.
Other recipients of REIF funding have included Islay Energy Community Benefit Society and the trading subsidiary of Fintry Development Trust.
REIF is delivered by the Scottish Investment Bank, Scottish Enterprise's investment arm, on behalf of the Scottish Government and its Enterprise Agencies.
Ready for REIF?
REIF considers projects that support the delivery of energy from a renewable source or represent an innovative renewable energy technology.
For example, REIF can support marine energy, community-owned renewables, and renewable district heating, amongst other things.
If your company or community group is working in the area of renewable energy at the test or commercialisation stage, and trying to assemble a funding package, do get in contact with the REIF team at an early stage in the process and let’s see what can be done.
Could REIF support your project?
Photography: View of Tobermory, Mull. Gerry Zambonini. https://www.flickr.com/photos/zambog/