Meet the Developer: Swindon Common Farm Solar
In a Meet the Developer special, we travelled from London to Swindon to really get our heads around Public Power Solutions (PPS), the driving force behind the UK’s first council solar bond.
James Owen is Commercial Director at PPS and over the course of an afternoon our conversation ranged from how he got into renewables to grand visions for the future, via the Swindon Common Farm Solar project and what it means for councils, investors, and our planet.
Without further ado, meet James
In 2001 he had a ‘green epiphany’ after being made redundant from the IT & Telecoms sector.
“It was while considering doing an MBA in business that I picked up a course textbook and quickly realised this was not for me. Instead, I started reading the 1997 IPCC report and it got me thinking: we need to do something, and the quicker we do, the quicker we can shape the future of our planet for the next generation.”
With his mind made up, James went about getting experience in the sustainability sector by taking on a variety of roles. By mid-2012 he had joined PPS.
Who are PPS, and why did he join them?
“PPS has evolved over time into the company you see today. Just a few years back we were part of the council’s own direct labour organisation service. When they decided to take most of that service back in-house in 2013, we were given responsibility for the growing clean tech, energy and waste solutions side of things. PPS is fully owned by the council and it’s our job to deliver those services. What’s unique is that we’re also free to take on clients such as other councils and private companies.
What drew me to take on the role here is that blend of public sector morals and reason to be — to provide services that have a positive impact on people’s lives — with the private sector drive to make money, for things to be financially sustainable in the long term.”
When Swindon Borough Council set a target to install 200MW of renewable energy capacity by 2020, it fell to PPS to find a way to deliver as much of that as possible from the council’s assets and other local assets.
200MW is a lot of technology. It takes a lot of money to get it installed. As a company with one foot firmly planted in the public sphere and the other in the private, PPS looked not just at how to deliver those renewables projects but also how to make it attractive and accessible to people living locally.
The result was the Swindon Common Farm Solar bond
“Solar is a great starting point for both us and the Council,” says James. “The return isn’t going to make you a millionaire but it’s stable, it’s decent, and it’s better than current cash interest rates.
Plus, solar gets people talking! Most people like it, and that’s what we’re about. As a business and council service provider our job is to do things that appeal to the majority, so solar is perfect. Even DECC’s own analysis says it’s the most popular renewable technology in the UK.”
The Swindon Common Farm Solar bond will pay an effective 6% IRR to investors over the 20 year life of the project through a Fixed Return Debenture. PPS and the Council are keen for as many people as possible in the area to become investors.
Local investment
Building something that local people can invest in was and is one of the main priorities for everyone involved. It’s even written into the purpose of the council-owned Community Interest Company (CIC) that was set up to own and manage the solar farm.
But where did the idea come from, and why?
James explains.
“Four years ago I heard Louise [Wilson, Abundance co-founder and Director] talk about Abundance, about investing from £5 into local projects, and I immediately knew this was something I wanted to find out more about. It’s enabling; it’s accessible.
When we started work on Swindon Common Farm, Dale Heenan [Conservative Councillor, Swindon Borough Council] had also heard of Abundance and so the idea was formed; let’s look into this, starting with our residents. At every public engagement session we asked: what do you want the solar park to be? And every time, the answer we got from over 80% of people was: something we’re included in, something we’re involved with. In some way shape or form we were consistently hearing: can I invest?”
Is this a one-off?
For James and PPS this is just the beginning.
Their ‘rich picture’ details the vision they have for Swindon and it’s impressive. James took us through the thought behind it.
“We’re starting with a solar park but as you can see, we believe there’s much more we can do. Solar powered park-and-ride. Solar topped noise barriers. Sustainable transport. Heat from waste; and all of it feeding into a local authority energy company.
The thing is, when you’re generating lots of energy locally — which Swindon will be once those 200MW of renewables are all installed — you can start thinking about the best way to manage that. Before the advent of the National Grid and the eventual privatisation of the regional electricity companies into Big Six suppliers we have today, there were over 480 local authority energy suppliers. It only really stopped because it became too difficult to manage demand and supply locally. Now that’s becoming a reality with battery storage. So why not take back that control, supply heat and power to your residents — maybe even at a discounted rate — while also letting people invest in the very energy they’re using.
It’s ultimately about going full circle and using 21st century technology to realise 20th century thinking. All the while the three groups involved — us, the Council and everybody in the local area — benefits from a cleaner, greener Swindon, from the annual payments projects like Swindon Common Farm will be making to local causes, and from the financial return on investment.”
What Swindon Common Farm can produce
It’s a virtuous local circle, we decide. Local money, funding local things, that brings in a regular income while getting other benefits too. And if that money is kept local, the benefits increase exponentially. Maybe it gets reinvested in another PPS/Council project. Maybe it gets spent on a week’s worth of lunches from a nearby deli. Maybe it helps the school buy more books for its library when it buys some cakes at the school’s Christmas and summer fêtes. What all that produces is a thriving local economy; a stronger Swindon.
Swindon Common Farm Solar is the first project of its kind in the UK and without the vision of James, Dale, and their colleagues at PPS and the Council it couldn’t have happened.
We’re all hoping it’s the first of many.
RISK WARNING
As with any investment, there are risks when investing on Abundance. Your invested capital is at risk and any return on your investment depends on the ability of the company or council you have invested in to pay your returns. Investments on Abundance are generally long term and you should be prepared to hold them to maturity. The investments are illiquid and you may not be able to sell them if you need your money back earlier, and their value can rise or fall. Some investments may be secured, but this does not guarantee repayment or your return.
Quoted returns are no guarantee of future returns and past performance is not a guide to future performance. Specific risks will apply in relation to each investment. Please consider all risks before investing and read the Offer Document or Factsheet for each investment. The investments on Abundance include debentures or bonds and peer to peer loans — Abundance’s service in relation to loans is not covered by the Financial Services Compensation Scheme (FSCS).
