The Business Model is based on the generation of income from the sale of electricity to the national grid. The income figures are informed by technical assumptions made by a hydro consultancy, Green Cat Renewables, and a hydrology report based on 12 months’ measurements by environmental consultants. The estimated output in each year. The water resource figures are approved and fully consented by SEPA.
The income from the sale of electricity will be used to cover operational and maintenance cost of the Hydro and to service any commercial loans which were obtained for its construction.
Subject to the financial security of LEG Power Hydro, surplus income generated by the scheme will be passed to Lochaber Environmental Group for its future sustainability and a small grant will be made to Ballachulish Community Company (BCC). In the early years we will have to focus on repaying money borrowed to set up the scheme, but we hope to be able to grow the funds for LEG from the first year and to offer a grant to BCC.
In addition, the Board aims to use some of the surplus to pay interest to investors and to respond positively to any investors who wish to withdraw their community shares.
When published, the LEG Power Business Plan will have more detail about the business and financial model for the Glenachulish Hydro and a risk assessment which will be regularly reviewed by the Board of LEG Power.