Mongoose Energy announces financial close of a further three Community Energy projects

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£20 million raised to date from community investors via 18 share and bond offers

20 December 2016

Mongoose Energy is pleased to announce the financial close of three additional projects, marking the completion of the initial financing round of its current community-owned renewable energy portfolio. The company has raised £70 million in capital to date to finance the construction and management of 57 MW of community owned solar PV projects, generating enough renewable electricity to power 18,000 homes[1].  Over their lifetime, the projects in the portfolio are projected to deliver at least £1 of community benefit for every £1 raised by community investors.

Mongoose Energy works with community groups, commercial project developers and investors to identify, develop, finance, build and manage community-owned renewable energy installations. The organisation is majority owned by the community energy groups it works with and actively encourages new Community Benefit Societies to join.

Finance raised to date comprises:

  • £20 million raised from over 3,300 community investors via 18 share and bond offers
  • £34.2 million of senior debt loaned to 11 projects by Triodos Bank and Close Brothers
  • £5.9 million from seven public sector and social investors including local authorities and a public sector pension fund
  • £9.5 million from a range of commercial investors

As part of its mission to increase community ownership of renewable generation assets, Mongoose has financed the UK’s largest portfolio of split-ownership solar farms, where commercial developers partner with community energy groups to develop larger sites. These include Braydon Manor in Wiltshire, the UK’s first split-ownership solar farm, and Orchard in Kent, the UK’s largest community-owned solar site.

Robert Rabinowitz, Head of Generation, at Mongoose Energy commented: “Our team has been relentless in raising an unprecedented level of community investment, as well as an innovative mix of capital from banks, commercial investors and public and social sector investors to make sure that every single one of our projects was able to reach financial close.  We are already working on bringing even more assets into community ownership to help to change the nature of energy ownership in the UK and put people at the heart of it.”

Philip Bazin, Environment Team Manager at Triodos Bank, said: “Triodos is pleased to have partnered with Mongoose on the financing of 7 projects.  Mongoose is a perfect partner for Triodos as they combine professionalism and expertise with a real passion for the social and ethical goals that drive Triodos’ business.”

Chris Rodgers, Head of Energy Finance at Close Brothers, stated: “Working with Mongoose has enabled us to prove that it is possible to work effectively with communities on a commercial basis.  We have really appreciated Mongoose’s gumption in overcoming all the inevitable bumps in the road that we have faced together.”

Penny Shepherd MBE, chair of Orchard Community Energy which currently has a bond offer available to support the ongoing finance of its 5MW solar array, said:

“Working with Mongoose Energy brings together expertise from across the UK. Its brave vision of enabling community energy projects has guided us through the process of acquisition. We have been fortunate to pull on past successes and feel in safe hands when it comes to navigating some of the many policy changes that have been taking place.”

[1] Based on Ofgem figures for UK average domestic electricity consumption.

 

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