{"id":21609,"date":"2023-07-19T10:44:56","date_gmt":"2023-07-19T09:44:56","guid":{"rendered":"http:\/\/www.res-group.com\/shared-ownership-of-renewable-energy-complex-but-rewarding\/"},"modified":"2023-07-19T10:44:56","modified_gmt":"2023-07-19T09:44:56","slug":"shared-ownership-of-renewable-energy-complex-but-rewarding","status":"publish","type":"post","link":"https:\/\/www.res-group.com\/tr\/shared-ownership-of-renewable-energy-complex-but-rewarding\/","title":{"rendered":"Shared ownership of renewable energy: complex but rewarding"},"content":{"rendered":"

By Gerhard Kienzler, Managing Director of RES in Germany<\/em><\/p>\n

Germany and Denmark have a long history of shared ownership of wind farms in the form of co-operative models.  However, the broader concept of shared ownership – a structure that involves a community as a meaningful financial partner in a renewable energy project – remains relatively new, both in the UK, and elsewhere in Europe.<\/p>\n

Historically, the decision to facilitate shared ownership as part of a new renewable energy project has either been driven directly by the landowner, for example municipalities with a mandate to create greater economic benefits for the local community, or by a developer, to enhance active public participation. <\/span><\/p>\n

With the increase in renewable energy deployment across all countries to support the decarbonisation of society, there is a desire from all stakeholders for more creative and inclusive forms of benefits. This has elevated shared ownership models to a new level of importance in recent years. In Germany, where suitable land is often a bottleneck to new development, most projects we now take forward have an element of shared ownership.  <\/p>\n

What is driving the shared ownership of renewable energy?<\/strong><\/p>\n

Aside from the obvious carbon benefits, these types of projects deliver everything from healthcare and education initiatives to town infrastructure, and art and culture programmes \u2013 projects that are not only important for the immediate future but the next generation too. Additionally, the revenue derived from shared ownership doesn\u2019t come with the limitations sometimes applied to more traditional community benefit schemes. Moreover, projects with a form of shared ownership are typically more closely bound to the local community where they operate.<\/p>\n

The trend for shared ownership is also being driven by government policy. In Canada for example, the participation of indigenous communities in the development and shared ownership of renewable energy projects is encouraged. Indigenous communities have access to advice and financial support to help them acquire equity shares in high value projects. This includes RES\u2019 Bekevar wind project where the Cowessess First Nation is a significant equity participant, a construction subcontractor and a landowner in the project.<\/p>\n

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The sod-turning at Bekevar Wind Farm (July 2023) where Cowessess elders performed a traditional ceremony to wish for good luck and a safe construction period.<\/em><\/span><\/p>\n

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Although shared ownership projects can be somewhat complex to execute, with only a limited number coming to fruition, new drivers continue to emerge. This includes investors who understand that these projects can form an integral part of their ESG strategy.  <\/p>\n

Due to this shifting landscape, we can expect many more shared ownership projects in the pipeline. This has created a new niche in the market for renewable energy developers that are aligned from a values perspective but also have the technical expertise to execute these more contractually complex projects.<\/p>\n

Breaking new ground<\/strong><\/p>\n

With no two projects, communities, or finance arrangements the same, new ground is being broken every time a project is developed, and RES is quickly building up expertise across different forms of shared ownership in its development markets. Recent projects include:<\/p>\n