WinGen

 

Updates

 

10th January 2009

 

Message from the Chairman

Merry Xmas and a Happy New Year. And thanks to the 580 registrants for your very supportive declarations of interest. We do however need to take a reality check on where we are.

 

With my wee advisory team this last two days we have been carefully assessing the situation within the context of the economic world as it is today, and, frankly, despite my continuing huge enthusiasm for the initiative, in the current climate, we do not now believe the project is deliverable. The deep concerns are as follows -

1) A big buy in by the rural sector is a crucial element, for both practical and political reasons. Whilst achieving 580 registrants over the last three months has been encouraging, registration has reduced to a trickle. It is thousands we need not hundreds. Average initial investment intentions may be circa £3 to £4k. To achieve the £10M start up funding alone therefore requires at least 3000 registrants. And to have political clout requires much more. Without political clout we cannot have serious input into securing streamlined planning procedures.

2) The current world wide economic crisis weighs heavy, on two fronts. Most registrants will have suffered a large fall in the value of their savings and investment portfolios, and therefore actual investment will likely be less than original intention. And that will be even more a problem when we begin to need Turbine investment monies. To illustrate, 100 three Mw turbines would require circa £300 M. An 80% gearing would require £240M in loan stock to financial circles, and £60 M in next tranche rural and small shareholder investment. In the current economic climate this last will not be easy.

 

3) You are aware we did consider a full blown publicity campaign, financed by "pre- investment" funding. The above rationale suggests it unlikely to be successful, and we are not prepared to risk your capital so doing. It is a reality that the 580 to date are the cogniscenti and switched on enthusiasts. It is unlikely, in the above climate, that we can turn that into the required thousands. Pre-investors cash will be returned in due course.

 

True we could allocate more time. But if the situation is as we believe, then it is not a good plan to keep people hanging on in hope that we go operational. Those with sites need to be free to get on and make alternative arrangements.

 

We could demount to a much less ambitious scheme. But it was not our intention just to be another city based 'Wind Power Development Company'. Anyone or group with money can do that themselves. The Wingen scheme was to be truly and uniquely in the hands of the rural sector.

 

What I think we have done however is raise the understanding of the potential financial gains to be had from such investment so that individuals and communities should be aware of the stakes and fight for a big share of the cake! I strongly recommend communities to come together to develop and invest in joined up local schemes. For those so minded please contact 'Energy 4 All' www.energy4all.co.uk with whom I have had good discussion. They have a remarkable track record in delivering tailor made community schemes.

 

And I hope I have raised awareness of the important place onshore wind power has in addressing the looming energy crisis facing the world. It is currently by far the most cost effective solution.

 

I have pushed my boat out no little to try to bring this unusual scheme to a reality. So it is hugely disappointing to find myself not delivering. My enthusiasm has not waned but the practicalities have got in the way! I still think it a splendid plan, and hope that some enthusiasts, here and there, will have a go to put together substantial local schemes on the rural/small-shareholder ownership lines pursued by 'Wingen'. Indeed may I suggest to those of you with potential sites, that you first consider putting together, or taking part in, a local/regional joint initiative a la Wingen, before travelling the current conventional path in which the developer takes most! Indeed such activity would be the essence of plan B. Working on it!

 

Finally, a big thank you to my wee advisory team, registrants, all the many supporters who have taken an interest, SAOS in particular, and the journalists of papers and magazines who have given highly supportive space to the project.

 

Who knows, when/if the economic world settles down, a phoenix may rise from the ashes!

Maitland Mackie

 

 

19 December 2008

Welcome to the weekly update from Wingen. Here you will find out what we have been doing this week, who we have been meeting with, and what progress has been made.

 

About Wingen...

 

OUR MISSION: To deliver substantive economic collective and individual benefit to the rural community, and to be a major contributor to the UK’s power supply.

 

Wingen is a UK-wide project, aiming to maximise wind potential in the UK by involving all parts of the rural community, by creating a network of wind generators throughout the country to supply a large proportion of the UK’s Energy Requirements. This is a plan that delivers to stakeholders of the rural community the chance to take substantial initial ownership of the wind generating potential of its own land and vistas.

 

Message from the Chairman...

“Moving in five directions at once is tricky but we are trying to stay with the momentum, and start the moves from concept to reality. Our think tank team (TTT) met on Wednesday evening in a semi formal session, led by James Graham, CE of SAOS (www.saos.co.uk). Unanimous agreement that interest in the initiative, is such that we need to start formal process to bring Rural Sector Wingen Ltd (RSWL) into live operating mode. We are just a few phone calls away from securing the prestart fund. This particularly enables the mounting of a focused advertising programme of our plans. We now can have access to GIS capability that pinpoints best sites throughout the UK, so facilitating a direct mailshot approach to alert potential site owners to the opportunity that RSWL offers. The TTT felt it a certainty that such enhanced publicising activity will fast bring us to the £10Million core funding start up target previously set.

 

But soberingly, we are clear that by starting to take in some funding we “have crossed the responsibility bridge” as one of the TTT put it. To make the point may I quote one of the many hugely supportive recent emails received.

 

“Dear Maitland and Philippa, I will start by saying that I am not a landowner, which is unfortunate for both you and I, but as soon as I read the article in Scotland On Sunday, I immediately registered my interest. I live in a rural community on the edge of Edinburgh and have long regretted the fact the as I step out of my door and look at the Pentland Hills which rise above our village, I am frequently blasted by wind which is being put to no good use. I have felt frustrated that there is so little that I could do to change the situation. I immediately felt empowered by your approach and would be very happy to invest.”

 

Wonderfully supportive of course, but it was the starkness of the responsibility we are taking on that hit home.

 

So, the plan now is to put in place the first Company Board as soon as possible. This is to enable formal decision making and to control the use of the funds now coming in, as for instance to formally endorse the intention to award 10% bonus allocation of initial shares for prestart funding. The initial Board will be kept small to allow easy addition later as RSWL becomes operational. Directors at this stage will work pro bono.

 

SAOS, working pro bono, have offered to scope out a start up prospectus which will articulate the minutiae of crucial issues around shareholdings and ownership structure, governance and future development. This is a crucial aspect for Wingen going forward.

 

Steered by an ambassador, in the new year we are meeting with Malcolm Wicks and Lord Jenkins and other denizens of Whitehall who are now taking serious interest.”

 

Dr Mackie

 

The story so far...
Registrants: 549

Ambassadors: 13

Availability of funding: £2.5 million and rising

 

This week...

This week has been extremely busy. Our branding process is almost complete. We will be updating our website early in the New Year to reflect the new brand.

On Wednesday 17th a ‘Think Tank’ session was held at Westertown in Aberdeenshire, to discuss Wingen’s progress. The appointment of a Company Board, and feasibility studies are among the plans that have been made, with collaboration from organisations SAOS and Scottish Enterprise.

 

Political progress...

Meetings are being set up for the New Year. In January Maitland is going to the House of Lords to meet with Malcolm Wicks, the Minister of State for Energy, Department of Business, Enterprise & Regulatory Reform. This is an excellent opportunity to bring the Wingen message firmly to the UK as a whole.

Also in January, Maitland will visit the Scottish Parliament to meet with Patrick Harvie MSP, a Green party member who is Convener of the Transport, Infrastructure and Climate Change Committee. He will also present our company to Iain Smith MSP, who is Convener of Economy, Energy & Tourism Committee. Finally he will meet with Robin Harper MSP, a Green party member who is Convener of the Cross-Party Group in the Scottish Parliament on Renewable Energy and Energy Efficiency.

Any aid in introductions to other MP’s and other devolved administrations would be greatly appreciated. It is of paramount importance that we publicise ourselves throughout the United Kingdom, and we are very keen to do so.

 

In the media...

Last Sunday 14th we were featured in the Sunday Times business section. The article was written by Business Editor John Penman. See links below to recent articles...

Times Online

Scotland on Sunday

We expect a major article in the Scotsman before the year end. This will be provided by Jenny Haworth who is the Environment Correspondent.

 

Next steps...

Clare, at Invicta Public Affairs, has spoken to all those who have signalled interest in investing in the start up fund. The response has been encouraging, with over about £50k pledged already. If anyone is interested but has not yet indicated, please do so, by following the online instructions, or by getting in touch with Clare on 0131 229 0159.

Maitland has liaised with Burnett & Reid LLP of Aberdeen. A client account has been set up, to which cheques can be sent or bacs/chaps payments made. Details are available on the website. This start up finance will really put Wingen on a fast track, by allowing promotional material to be distributed and other tasks to be started.

Investments at this stage are welcome from £500 - £5,000 for the start up fund. When we go live on the 31st January, investments from £1,000 to £20,000 per individual will be welcome.

Next week look out for...

Our concept brochure is nearing completion, and will be distributed to all registered parties in the New Year. The Ambassador’s pack will also be sent to those who have expressed interest. Anyone who is interested in becoming an Ambassador, a local champion to encourage interest in Wingen in your local area, please contact Maitland or Philippa using the details below.

 

Get in touch with us...

If you have any questions, or wish to join our mailing list, please call Maitland or Philippa on
01467 671 466 or email maitland@wingen.co.uk
Further information about Wingen can be found on our website, www.wingen.co.uk

 

 

11th December 2008

 

Welcome to the weekly update from Wingen. Here you will find out what we have been doing this week, who we have been meeting with, and what progress has been made.

 

About Wingen...

 

Our Mission:

To deliver substantive economic collective and individual benefit to the rural community, and to be a major contributor to the UK's power supply.

Wingen is a UK-wide project, aiming to maximise wind potential in the UK by involving all parts of the rural community, by creating a network of wind generators throughout the country to supply a large proportion of the UK's Energy Requirements.
This is a plan that delivers to stake holders of the rural community the chance to take substantial initial ownership of the wind generating potential of its own land and vistas.

 

Message from the Chairman...

"The whirlwind continues. Support is increasing daily, from all quarters and organisations throughout the rural sector. Particularly as noted below the Scottish Government Environment & Rural Affairs Directorate asked for a presentation on our initiative. They were intrigued, even impressed. They identified that the scheme tackled a "niche" of distributed individual or small cluster installation. And they saw that our project could put into the rural sector annually three times the current £500 M agricultural support payments that currently underpins the farming community, and that the concept would automatically distribute the returns over a wide section of the rural communities.

To control the whirlwind, and focus our publicity campaign, is part of the remit of given to "Invicta" our PR guru's mentioned in the last update. They will now be responsible for organising and updating our website www.wingen.co.uk, ensuring regular reports to registrants, and are currently finalising the "ambassador" packs, (publicity material for local distribution and display). I am pleased to say there are now, the number pure coincidence I hope, 12 Wingen 'disciples' (Ambassadors) throughout the UK. We are happy to have more, and there is no limit to numbers...the only qualification you need is to be as brave and bold as I am.

In the last update we suggested you consider subscribing to a pre-start fund. There has been an encouraging response. We do not wish to make a call for cash until the fund nears the £100k mark. Currently we have already had offers of £40K and we have set a target of securing the remainder £60k.

I don't really want to annoy folk but will take a chance on that, and I am arranging for Invicta and Philippa, 'Project Coordinator' to call around to answer queries, explain the purpose and the risks, and gauge support.

May I confirm again that such prestart offers will be treated as prepayment for initial green share issue and qualify for a 10% bonus issue.

We do also need to repeat that since we are still at the concept stage there is no formal Board structure to so ensure. You need to have some trust that when we do go real we progenitors of the initiative, will see that the commitment is honoured.

I repeat that such a fund would finance activity that would truly put us on a fast track to start up."

Dr Mackie

 

The Story so far...

Registrants: 523
Ambassadors: 12
Availability of funding: £2.5 million and rising

 

This week...

This week has been extremely busy. We are currently undergoing a major branding process as you can see with our new style newsletter, complete with our new Wingen logo. Our concept brochure is following close behind, and shall be sent to all those registered in due course. In early January we will be launching the ''Tell 10 to tell 10'' campaign aimed at getting all registrants and supporters to raise public awareness of the initiative amongst their friends, colleagues and peers.

 

Political Progress...

On Tuesday Maitland, Philippa and Mark from Invicta met with various senior officials from the Scottish Government Environment and Rural Affairs Directorate, before heading to the Scottish Parliament. At the Parliament they met with several MSP's, including Rod Gibson, the SNP MSP for the Highlands & islands who is Deputy Convener of the Economy, Energy & Tourism Committee. In addition they met with Lewis Macdonald, Labour MSP for Aberdeen Central and Shadow Energy Minister. Finally they met with Alex Johnstone, the Conservative party spokesperson on the environment and John Scott MSP who is still a working farmer himself. All were extremely interested in Wingen as a concept........ It is hoped that in the near future we can set up meetings with other important and influential MSP's, MP's, and AM's. Any help in securing introductions would be much appreciated.

 

In the media...

Last Sunday 7th we were featured in the Scotland on Sunday business section. We were also in the October section of 'Farmer' in the Buchan Observer.

Also, look out for a major feature on Wingen in this Sunday's edition of the Sunday Times to be written by John Penman who is Business Editor.

Finally we expect a major article in the Scotsman before the year end. This will be provided by Jenny Haworth who is the Environment Correspondent.

 

Next Steps...

Maitland has liaised with Burnett & Reid LLP of Aberdeen. A client account has been set up, to which cheques can be sent or bacs/chaps payments made. Details are available on the website. Further to this Philippa (Project Coordinator) shall be ringing those who have signalled interest in investing in the start up fund already. If anyone is interested but has not yet indicated, please do so, by following the online instructions, or by getting in touch with Philippa.

 

Next week look out for...

Our concept brochure, currently being designed, soon to be distributed to all registered parties and to make up part of the Ambassador's pack for future promotional use.

 

Get in touch with us...

If you have any questions please call Maitland or Philippa on 01467 671 466 or maitland@wingen.co.uk

 

 

Friday, 28th November 2008

 

There continues to be encouraging growing interest in this vision. We now have 460 registrants, indicating a potential of over £2M start up green share investment. However, a clear reminder to you all, this concept cannot become a reality until £10 million of funding is forthcoming from the rural sector, a philosophy which is key to this plan.

 

We have now appointed Philippa Robson as a "Project Coordinator"; a Heriot Watt graduate to help cope with the colossal tide of paper, emails and enquiries on the initiative. We have also recruited a Public Affairs agency to assist in this process; a key element of which is maintaining dialogue with the media, stakeholders, politicians and ultimately securing the £10million investment to make this become a reality.

 

SAOS, Scotland's much respected organisation charged with developing cooperation, joint ventures and coordinated commercial activity in the rural sector, has offered to facilitate the production of a "concept prospectus"; to articulate the minutiae of important detail pertaining to ownership structure, financing and management of the company. This will be shared with you in the next update.

 

We have been approached by national consultancy firms, with rural land use expertise, interested in partnering on the delivery of wind generation at the coal face. Entering into such a partnership with a firm or firms with relevant proven competence and a rural track record, would be a very efficient way to fast track installation activity.

 

It is worth noting that a number of site owners, already at various stages of the planning process, are watching with interest the progression of Wingen from concept to reality. So much so, that these land owners have indicated that they will not sign away their sites to third parties until the vision of Wingen is a reality.

In the last update, we appealed for help in promoting the plan by way of stakeholders taking on an ambassadorial role across the UK. I am very pleased to report a thoroughly high response rate to this call to arms. We are now preparing an Ambassador's Pack, which will contain:

- An informative Leaflet describing the initiative
- A power point presentation: focusing on the principle issues
- A template press article for local press
- Business cards with our contacts and a cogent message.

 

Given the need to gather support from the rural community on a UK wide level, we will shortly be taking Wingen on the road via road shows to gather momentum and support for this concept. This is where the Ambassadorial role is crucial - we need local people with local knowledge portraying the message into their own local community.

 

My colleagues will be in contact shortly with those of you who have shown an interest in assisting with the ambassadorial role. Those of you who would wish to assist with this process but have yet to be in contact, don't worry, support is welcomed at all times.

 

Note the cogent message -

Make £15 Billion per year
For the Rural Sector by taking
Ownership of the Wind Power
Of our Land and Vistas!
How?
Visit www.wingen.co.uk

 

Now the tricky bit. We need to get on with it. I am very aware of the activity of developers scouring the country trying for suitable sites, which is understandable given the huge financial returns that can be obtained.

 

In order for us to become viable, we need to secure the £10million core funding. Speed is of the essence. To reach this figure, and get quickly from concept to reality, financial expenditure needs to be spent on promotional material and UK wide media dialogue with both the mainstream and rural sector press.

 

We also need to commission the production of maps identifying likely generator sites, complete with postcode addresses, costly but very doable. We have identified a company that has the software competences to collect and collate wind speed, area and contour, habitation, SSI, and postcode data so delivering potential sites of specified criteria.

 

As mentioned before, this all takes money.

 

Mackie's are currently covering the basics and indeed fundamentals of the start up costs (Project Coordinator, Public Relations & Travel) amounting to approx £20,000 and will continue to do so. But the reality is that to put the project on the fast track, it needs a working fund of circa £100K.

 

Recognising that this is an unusual and unique initiative, may we propose an arrangement for registrants, asking those who can and are willing to help, to consider making a small prepayment for the green shares to be issued on start up. Anyone so doing will qualify for a 10% extra allocation of shares when we go from concept to reality.

I need to carefully articulate the risks in this.

1) Be clear that at this concept stage, there is no formal authority to guarantee that your cash input will be so recognised as green share issue prepayment. You simply have to trust that at start up, we will so steer the allocation process.

2) It is a possibility that we not succeed in securing enough interest and do not proceed to start up. The gains to be made however are so big; it is difficult to see how we can fail, given the engagement of the wide, but targeted audience that the above activity enables.

Please indicate willingness to so pre-invest, and amount. Don't send cash. I am arranging with Johnston & Carmichael, (one of Scotland's major independent accountancy firms) to receive such funds, and account for them in due course.

 

Finally a reminder of what is at stake. Consider the annual returns from one 3 MW Wingen on a reasonable site. The Capital costs would be circa £3 million, the projected owners rent would be £20,000 (3.7% profit), however the bulk of the profits £523,600 (96.3% profit) are being taken up by city investors and big developers, which needs to change. These profits need to make their way back to the rural sector via its shareholders, which is the core essence of the Wingen philosophy. Better than in the hands of the local community than that of big developers and city investors. The more generators we provide the greater return to the rural community:

1,000 Wingens £500 Million/yr
10,000 Wingens £5 Billion/yr
30,000 Wingens (the full monte) £15 Billion/yr

 

The potential for Rural Sector WinGen is vast, but this will only become a reality, if a multitude of the rural sector follows your lead and sign up, and so reap the deserved rewards.

 

 

Maitland Mackie

maitland@wingen.co.uk

01467 671 466

 

 

Thursday, 13th November 2008

Rural Sector Wingen Ltd - the rationale for your support

 

The driving rationale of our projected wind power generating company is not simply to make profits; it is to make profits for a purpose. And the purpose is to deliver the huge profits available from our land and vistas into the hands of the folk in the rural sector.

 

Take a look at these figures, from the financials presented in the plan:
Consider the annual returns from one 3 MW Wingen on a reasonable site.
Capital cost circa £3 million.
Projected site owner's rent; say £20,000 - 3.7%
Profit (after 6% interest) £523600 - 96.3%

 

So big business and city investors are currently hoovering up the bulk of half a million pounds from each three MW's installed. Good luck to them, but why let them, when simply setting up our own rural sector owned company, RSWL, to plan, finance, install and service our own land and vistas generating power, would secure the bulk of this potential in our own hands?

 

Every 1,000 generators have the potential to deliver £500 Million annually to the rural sector.
10,000 is £5 Billion. 30,000 is £15 Billion!! Let's make it happen. Do your friends a favour. Spread this simple message around and encourage registration of interest!

 

Another hectic few weeks have passed, and encouragingly, interest still swells with now over 400 registrants, indicating 600 potential sites and the availability of at least £1.5 million start up investment funding. Encouraging indeed, but there is much more to do. We remind you that the "chocks away" target is for potential site owners and the wider rural community to show an initial £10 million appetite for the initiative. It is important that investment in the initial issue of green shares, the core start up finance, is taken up by a multitude of small investors to ensure wide ownership of the company, particularly from the rural sector. To so ensure, we may put a top individual limit of £20K on this initial investment. There will of course be an opportunity for wide scale further investment when we are at the stage of buying and installing windmills! In these following rounds, early investors from the rural sector will have priority and incentive. The investment plan will be outlined carefully in the Company prospectus which will be professionally prepared, and sent out, once the rural sector has indicated a full appetite for it.

 

We have recently met with, or are about to meet with numerous bodies such as the Forestry Commission, Crown Estates, Country Land and Business Association (CLA), National Trust, and have travelled to Northern Ireland to meet with the President and Vice-President of the NFU NI, meetings set up by our first Wingen regional ambassador - Richard Pollock (see below). And a big straw in the wind is that the Scottish Executive's General Environment Department's senior officials are keen to have the concept presented to them. Need a steer to get similarly into DEFRA.

 

Major feature articles on Wingen are also set to appear in publications by the CLA and the Scottish Rural Property and Business Association (SRPBA) and I presented the concept at the SAOS Annual Conference last Thursday (6th November). Over the next few weeks I will continue to travel around the UK to speak and engage with rural bodies and individual farmers to ensure that the key message and underlining principles of RSWL are heard and that support for these are gathered.

 

We could do with some help though. To put the initiative on a fast track we need UK wide regional RSWL ambassadors to help publicise and secure registered interest. Anyone willing to help please email or phone the links below. The only deal that can be offered at this stage is a gentleman's agreement to allocate a useful bonus of green shares to ambassadors at start up!

 

With some embarrassment I wish to make clear my own interest in the initiative. I do so because I occasionally detect an understandable sceptical reaction, "is Mackie out to make millions?" Be nice but no. My involvement is 99% mission orientated 1% entrepreneurial. The mission (99%) is to deliver to the stakeholders of the rural sector this huge potential financial gain, the entrepreneurial 1% interest, is that I will be only one of the multitude of small original investors!

 

So we will continue to forge ahead with this unique business venture seeking to secure the crucial initial £10 million investment. Securing wide based rural support is key. Please help to publicise and "sell" the initiative to your colleagues, friends and business acquaintances. Please note that if you wish to discuss this issue further, I would be more than happy to personally speak with you.

 

Maitland Mackie
maitland@wingen.co.uk
Telephone: 01467 671466