|
|
|
|
|||||||
|
|
|
Eco Investor October 2015 Unlisted Companies Community Energy Project Extends OfferA community energy project in the Northern Rivers region of NSW has raised $1.1 million and has extended its offer period to help it reach its target of $3 million. Enova Community Energy Ltd is aiming to be Australia's first community-owned, renewable energy retailer and installation business. The company sought to raise a minimum of $3 million at $1,000 per share from individuals and like-minded organizations with a minimum of 51 per cent of the capital to be from the local region. The company's marketing has included numerous share offer information meetings around the Northern Rivers region and interstate and this helped to generate a high level of pre-registrations. We received enormous interest and are very pleased at the level of support, said chair, Alison Crook. The offer will now close on 27 November 2015. Enova said extending the period will give more time to discuss the offer with larger investors both in the region and nationally, and with ethical investment firms who have said they would like more time to share the details with their clients. The company's business model is based around buying Renewable Energy Certificates and on- selling the energy to its clients. Sources of certificates could be large generators or local solar PV or other renewable energy systems. Enova aims to deliver attractively priced 100 per cent renewable energy to residential customers; install and maintain solar energy systems including energy storage technology; provide customized energy solutions for residential, business and government customers; and provide education in energy efficiency and assistance to lower energy costs. Investor returns will be through a combination of dividends, direct and indirect job opportunities in the region and community benefit projects. Enova intends to use some of its profits to reinvest in the region by assisting other renewable energy projects. The Northern Rivers region has a population of 300,000 people, about 130,000 homes, and 2,628 small/ medium businesses that employ five or more people. The region is said to have the highest penetration of solar PV in NSW with over 20 per cent of homes having PV systems and solar hot water. Enova estimates the region's environmentally aware market is at least 26,000 customers. The estimate is that 5,000 customers are needed for Enova to be financially sustainable and commence paying dividends.
Enova's competitor are 14 full service retailers including the three large energy companies, AGL, Energy Australia and Origin Energy, and smaller retailers including Red Energy and Powershop which offer green energy. "We estimate as much as $80 million a year flows out of the region in operating expenditure and profits to existing energy companies. Our aim is to capture as much of this as possible for the region," said Ms Crook. Enova hopes to demonstrate the viability of an alternative energy model that can be replicated around Australia, and would be prepared to assist such projects. This could be though being a retailer for another region and a purchaser of community renewable generation, sharing back-office systems and processes to reduce costs, or providing consultancy or facilitating their community investment process. Meanwhile, Enova Community Energy is an unlisted start-up with some way to go to generate first revenue and then profitability.
|
|
Search Eco Investor |
