Baywind Energy Co-operative

Baywind Energy Co-operative Ltd, an Industrial & Provident Society, was formed in 1996 to allow a community in Cumbria to invest in a local wind farm. The original board of directors included 7 members of the community from Ulverston and Barrow.

Baywind's aim is to promote the generation of renewable energy and energy conservation.

The first share offer in 1996/97 raised 1.2 million to buy two turbines at the Harlock Hill wind farm. In 1998/99 the second share offer raised a further 670,000 to buy one turbine at the Haverigg II wind farm site. Preference was shown for local investors, so that the community shares the economic benefits from their local wind farm. Around 40% of existing Baywind shareholders live either in Cumbria or North Lancashire with a wider number from the Northwest Region.

A co-operative society operates much like a traditional limited company except that the voting rights are distributed equally amongst the members, regardless of the number of shares held. Baywind has a minimum share holding of 300 and a maximum (by law) of 20,000. Hence a stake in the co-op is within easy reach of almost everyone but no single individual or organisation can have a controlling interest. The co-op currently has over 1,300 shareholders throughout the UK and abroad.

The seven members who currently make up the board of directors draw on an impressive range of skills and experience to conduct the business of the co-operative. The Board is elected by the whole membership at the AGM and is supported by a full time paid administrator, who is also a Director.

Baywind Successes to Date
Baywind has successfully carried out two share offers and raised over 1.9 million and currently has over 1300 members each receiving yearly share interest based upon the profits earned from electricity generation during the year. The share prospectus offered a minimum investment of 300 and a maximum of 20,000

Both share offers qualified for the Enterprise Investment Scheme (EIS) tax relief. Qualifying shareholders received 20% tax relief on their initial investment of 500 or more.

All profits derived from electricity generation are paid back to the shareholders. Since the formation of Baywind in 1996 members have received a competitive return on their investment:

Returns to Members
Year 1: (to 31/12/1997) Nil
Year 2: (to 31/12/1998) 6.2% gross (7.8% gross for EIS investor)
Year 3: (to 31/02/1999) 6.6% gross (8.2% gross for EIS investor)
Year 4: (to 31/12/2000) 6.4% gross (7.9% gross for EIS investor)
Year 5: (to 31/12/2001) 5.6% gross (7.1% gross for EIS investor)
Year 6: (to 31/12/2002) 6.1% gross (7.6% gross for EIS investor)
Year 7: (to 31/12/2003) * 3.8% gross (4.8% gross for EIS investor)
Year 8: (to 31/12/2004) 6.3% gross (7.8% gross for EIS investor)
Year 9: (to 31/12/2005) 7.22% gross (9.03% gross for EIS investor)
Year 10: (to 31/12/2006) 6.65% gross (8.31% gross for EIS investor) 
* First full year of Energy4All 
 
Benefits of Baywind
Baywind has proved over the last 6 years that this structure can be commercially successful and can bring major benefits to the local community:-

• The co-op uses local contractors for site development, maintenance, and support.
• The wind farm is visited by hundreds of school children and adults on educational visits and Baywind funds environmental books for local schools.
• There is an energy conservation trust funded by the co-op, which promotes energy conservation in the local community. The energy conservation trust provides information and grants for efficiency measures within the locality of the turbines to individual homes and community organisations.
• The co-op members (many of them locals) have received attractive annual dividends on their investments. The minimum investment for membership of the co-op is only 300 to ensure the broadest possible membership from the local community.
• This direct involvement increases awareness of environmental issues at the grass roots level.