Overview

Aberdeen Community Energy (ACE) is a locally established community benefit society which evolved as a stand alone legal entity from the local community charity: Donside Village Community SCIO. ACE built, owns and operates the Donside Hydro energy generation facility on behalf of the local community – on a completely voluntary basis. The Donside Hydro is a micro run-of-river hydro, with an installed capacity of 100kW. The purpose of the scheme is multi-benefit:

• Renewable energy generation: Re-generate clean, local renewable energy at a historic mill generation site – now a residential riverside community.
• Community wealth building: Run a viable community venture to allow community investment and allow community investor payback and a local community fund.
• Placemaking: To regenerate part of a former contaminated mill site into a vibrant riverside place for people and wildlife.
• Awareness and education: To inform and formally educate people about a range of important related matters – climate change, renewable energy, community empowerment, placemaking, nature and more.

Gap the project addresses

Donside Village & Hydro are built on a former contaminated mill site in an area of multiple deprivation. The issue was to raise the confidence and positive profile of the area, generate community wealth and in the process, do our bit in addressing the climate and nature emergency by generating clean renewable energy and cleaning up the site for people and wildlife.

Ownership model

Community Benefit Society – a form of cooperative.  Formally known as Donside Community Hydro Limited, Trading as Aberdeen Community Energy (ACE). Registered on the Mutuals Register – RS7251

This was the only legal form the venture could take in order to raise capital via a public community share offer.

Policy and funding

The Scottish Government’s policies and targets for local and community energy.  Local and small-scale renewables – Renewable and low carbon energy  and their allied Community and Renewable Energy Scheme (CARES) administered by Local Energy Scotland. We are Local Energy Scotland · Local Energy Scotland
CARES provided unrivalled start up support and funding: £10K grant to test feasibility & £250K in loans for down payments on equipment. The scheme would not have happened without this.

• After that, ACE raised capital via:
  £500K in community shares
  £600K in community bonds
  £150K private investment

Impact to date

• Clean, local, renewable energy generated – c. 4MW to date & associated CO2 savings.
• Community investor payback to date – 4% to bond holders per annum and variable to shareholders, aiming for c.7%IRR
• Community fund generated – low to begin, raising over the duration of the project.
• Volunteer input – 1,000s hours per annum to run the scheme and associated activities, education, landscape improvements, etc.
• Awareness raising: about climate, renewable energy, community empowerment and placemaking: 1,000s of visitors, public, students, school, politicians, etc. at public tours and bespoke events.
• Formal education: on the above matters: Many seminars and tours each year to local MSc & BSc students across various programmes from two Universities and many local public and private schools.
• Landscape improvements – 1,000s of native trees, shrubs and wildflowers planted around the scheme to remediate it from a former contaminated mill mud pit. As well as removing invasive non-native species.

Contribution to just transition

The project contributes to the following just transition outcomes:

• Citizens, communities and place: support affected regions by empowering and invigorating communities and strengthening local economies;
• Jobs, skills and education: equip people with the skills, education and retraining required to support retention and creation of access to green, fair and high-value work;
• Fair distribution of costs and benefits: address existing economic and social inequality by sharing the benefits of climate action widely, while ensuring that the costs are distributed on the basis of ability to pay;
• Environmental protection and restoration: commit to act within our planetary boundaries while protecting and restoring our natural environment;
• Decarbonisation and efficiencies: contribute to resource efficient and sustainable economic approaches that actively encourage decarbonisation, support low-carbon investment and infrastructure, and avoid carbon ‘lock-in’;

Contribution to local area and regional heritage

• Aberdeen is an energy city! This is a small project with a big profile in a global energy city. So, while generation is overall small, the huge project profile has a bigger impact in terms of showing how things can be done differently.
• The hydro is also on a former mill site. Riverside mills were once the industrial powerhouse to Aberdeen’s economy. This project shows how that approach of generating energy from the river can be realised in a modern sense with little to no environmental impact and lots of community impact!
• In addition, it has helped Scotland with meeting community wealth building and climate change targets (albeit in a very small way!).

Lessons learned

• Anything is possible when you put your minds to it!
• Communities have power (but only as much as societal systems allow).
• Collaboration is key – with gov, funders, communities, educators, etc.
• The spin off benefits are more important than the core task – education, placemaking, etc is more important than the energy generated.
• Awareness / publicity is crucial to success
• Challenges can be overcome – floods / droughts, etc.
•  The support of our community of investors – vibrant AGMs, great ethos and morale.

Constraints and challenges

• Capital fundraising was a real challenge but once we landed on the right road, a real success story!
• Dealing with difficult landowners was a major challenge that took a lot to overcome.
• Time, capacity and skills for community projects are real challenges. Most schemes are built and operated by professional commercial operators. Communities need extra support and time to make dreams come true. That’s where Local Energy Scotland and CARES saved the day.
• Climate change! Floods and droughts and their impacts on infrastructure and modelled generation and income.
• The requirement for long-term continued volunteer input. While we have managed this, more is always welcome and the future remains uncertain.
• Burdensome regulations hinder some development / income potential, i.e. ACE are unable to retail our energy for a higher price.
• Volatile energy price markets! While these have been overall beneficial to this project, they are volatile and therefore a risk.

Replication and scaling

In theory the project can be replicated, if the right site, and funding environment exists. It’s more challenging now because hydro is capital intensive and funding / subsidies are less available. Climate change and unpredictable water availability are increasing risks. But, the community model / wealth building and benefits can be applied to a range of technologies / energy types.

Working conditions and fair work practices

Featured organisations and initiatives were asked to supply the following information regarding working conditions:

• Alignment with Scottish Government Fair Work First criteria
• If they have gone beyond Fair Work First by incorporating broader values on fair work
• For larger organisations, whether a union recognition agreement is in place.

This did not apply to co-operatives structures and membership-based initiatives, though all projects and initiatives were given room to provide any detail on fair work practices deemed relevant.

The following information was provided:

ACE is a voluntary organisation with no paid employees.