Business/financial model

The Business Model is based on the generation of income from the sale of electricity to the national grid and the Feed-in Tariff. The income figures have been calculated by technical assumptions made by a hydro consultancy, Green Cat Renewables, and a hydrology report based on 12 months’ measurements by environmental consultants and 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 pay share interest on member equity or interest on any loans required for its construction.

Any surplus profits 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 the grant may be limited and dependant on available cash, but we hope to be able to grow the funds for LEG from the first year and to offer a grant to BCC.