This article was first published in the print edition of Utility Week.
There is a quiet revolution taking place throughout the United Kingdom, a power revolution. The Anaerobic Digestion revolution.
The benefits from AD are clear, at least that's if you're in the industry, but what if you're an outsider? What will the development of an AD plant mean for your life, for your community? What if the development of a new AD plant was driven by your community, designed and built to serve the community, its people, its enterprises? Never has this been more relevant than in the light of the Government's delay to a decision on Hinkley Point C. Local communities may want to consider the benefits of taking energy planning and security into their own hands. To turn this vision into a reality, planning and preparation is the key. This article explores the benefits of AD for local communities and some of the key legal considerations that must go into your AD business plan.
Selling the benefits of AD
For local communities, AD has a great story to tell, bringing investment to the local economy in terms of jobs, revenue, power supply, as a means of waste disposal and ecologically, by providing fertilizer to be used in local farm land. There are, as with any commercial development, drawbacks and environmental issues, many of which can be negated by careful planning. Where unavoidable, much can be done to prepare and engage communities with timely and honest information.
One approach is to establish a Community Interest Company ("CIC"), a type of limited company. CICs are designed for social enterprises that want to use their profits and assets for community benefits. CICs must have an 'asset lock' to ensure the company's assets are not used to benefit private shareholders, giving the community peace of mind that they will receive the benefits of the project over the long term.
Writing your AD business plan
If there is one key word, it's "certainty". Your business plan must deliver a clear, well-reasoned and achievable vision for your project. Not everything will go to plan, but the more work that's done in the initial stages, the more likely you are to succeed.
Your business plan should consider five core elements: structure, options, viability, contracts and the financial model.
AD can be an attractive and affordable way to bring investment, engagement and energy security to local economies. AD plants are not everyone's cup of tea, but if you do your homework and provide honest and timely information you may yet win round the most vocal of critics.