The Torrs Hydro plant at New Mills which provides renewable power to the community
This article first appeared in the Good Deals Almanack 2009 chapter 1, A New financial landscape: People Power
The share issue raised more than £90,000, attracting 200 investors, many from the community
In The Town of New Mills in Derbyshire, a share issue has empowered the community in a very literal way –by funding a hydro-electric plant.
The project to transform the energy supply available in New Mills started through Water Power Enterprises, a social enterprise that aims to reduce carbon emissions by setting up small-scale hydro-electric plants.
The enterprise found support from the local council and the community, but capital was needed to make it happen.
This capital came from a share issue. Members of the community, working with Water Power Enterprises, formed Torrs Hydro New Mills Ltd, an industrial and provident society (IPS), to do this. The IPS, formed in September 2007, then launched the share issue, with shares costing £1 each and each investment set at a minimum of 250 shares.
The share issue raised more than £90,000 in January 2008, attracting around 200 investors – many from the local community.The money raised through the share issue went towards purchasing and installing a 70 kilowatt hydro power plant using a 2,000-year-old Greek invention – the Archimedean screw. The screw produces electricity as it is turned by the power of water flowing through it. It generates an estimated 260,000kilowatt hours of green, renewable electricity every year – enough to power up to 70 homes.
Investors in Torrs Hydro do not receive a share of the profits generated from the scheme. The profits are either reinvested into the scheme, or used to help regenerate New Mills and promote environmental sustainability in the town. Investors may get a profit in the future after social objectives are achieved.
Following the success of the share issue in getting this project off the ground, Water Power Enterprises has expanded and is launching similar hydro-electric schemes in Settle (Yorkshire) and Stockport.
This article first appeared in last year's Good Deals 2009: The Social Investment Almanack. To make sure your organisation is featured in this year's Almanack email matt@societymedia.co.uk
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