Westmill Solar Co-Operative has completed Europe’s first ever cross-border cooperative solar energy investment for a community energy project.
In collaboration with a number of energy cooperatives in Spain, France, Belgium and the United Kingdom, Westmill Solar Co-operative has entered into an innovative financing agreement with REScoop Mutual for European Communities Investing in a Sustainable Europe (MECISE).
Westmill Solar Co-Operative has secured the £5 million loan over ten years to refinance the 5MW Westmill Solar community energy project in Oxfordshire, England. This new injection of funding will enable Westmill to secure its future for the next decade, increase investment in other local energy co-operatives and explore the possibility of expanding the project, including the possible installation of co-located battery energy storage systems ( BESS). .
In partnership with REScoop MECISE, five different energy cooperatives in four European countries, with a combined membership of more than 170,000 people, will share the Westmill investment.
REScoop MECISE is a pan-European initiative designed to encourage European citizens to work together across borders to fight climate change. The organization is supported by RESCoop.eu, the European federation of energy cooperatives. RESCoop.eu represents 2,250 energy cooperatives throughout Europe with approximately 1.5 million members.
Karel Derveaux, on behalf of Ecopower, chairman of the board of REScoop MECISE, said: “This is a truly groundbreaking deal – a network of the largest energy cooperatives in Europe using the power of their finances to raise money in a whole new way. It required close cross-border cooperation, which was not without challenges! But we have proven that the cooperative approach, with all the due diligence and legal safeguards you would expect, can achieve the same level of professionalism as any other major investment.”
Tom Parkinson, Chairman of Westmill Solar, added: “Borrowing from other co-operatives, rather than from banks or private equity, connects us directly to an international community of citizens committed to sustainable energy. We are confident that this will be the first of many such partnerships.”
Dirk Vansintjan, president of REScoop.eu, said: “European cooperatives prove that we can create a radical yet professional alternative in which communities and citizens, rather than wealthy investors, shape the future of energy. We are united in our concern about climate breakdown, and this collaboration shows that by working together we can take meaningful action.”
Community solar energy and finance
As examined in a previous study Solar energy portal blogging, community energy is becoming increasingly popular, especially in the solar energy sector. As community energy groups grow, so does the need for larger, more innovative financing solutions.
Bristol Energy Cooperative, one of Britain’s most successful community energy organizations with a 12 MW solar portfolio, launched its tenth community share offer in May this year. For this funding increase, the co-op has partnered with ethical bank Triodos Bank for the first time and is seeking to raise £1m to increase its solar portfolio by 1MW.
More recently, Ripple Energy announced that it has successfully financed the construction and development of the 42MW Derril Water Solar Park thanks to a £21.8 million loan package from Virgin Money. The Derill Water Solar Park, which will become operational in spring 2025, will be the first major solar park in Britain where members share both the power the park produces and co-ownership in its development.
The park will be partly owned by almost 10,000 people, plus 34 small and medium-sized enterprises (SMEs), all of whom will receive lower energy bills as a return on their investment in the project, instead of the usual dividends.
