The integration of the extension proposal to the overall Kype Muir complex delivers significant efficiencies in the way that the combined projects will be delivered. Specifically the sharing of Grid and Aviation infrastructure on its own will deliver significant savings to the project and means that the electricity produced is done so in the cheapest way possible.

At Banks we acknowledge the above fact and as a result are able to offer the local area an enhanced partnering package.

The new offer for the combined Kype Muir and Kype Muir Extension developments is supported by the following financial commitments;

  •  Increase in the communities share of gross revenues from 1.5% to 2.5%
  •  Guaranteed minimum of £5,000 per MW per annum

How will this be delivered?

The Community Partnering arrangement for Kype Muir is now agreed and as such cannot be changed. So to reflect the above change the community partnering arrangement for Kype Muir Extension will be amended to deliver the overall funding.

By way of a reminder the agreement on Kype Muir is as follows;

  • Gross Revenue share of 1.5%
  • Guaranteed minimum of £5,000 per MW per annum
  • Based on our current understanding of long term electricity prices this offer is expected to deliver £12,000,000 of funds to your local communities

2.5% of the revenue of the combined Kype Muir and Kype Muir Extension developments is expected to deliver £32,000,000 of funds to your local communities over the lifecycle of the projects. In order to deliver this overall package the Kype Muir Extension partnering proposal will be as follows;

  • Gross Revenue share of 4% delivering £20,000,000 taking the combined revenue share of the Kype projects to £32,000,000
  • Underwritten by a guaranteed minimum of £5,000,000 per MW per annum which equates to £7,600,000 over the projects lifecycle

The table below sets out the financial details associated with the community partnering proposal covering the two sites 

Community Benefit Table

 

Gross Revenue %

Guaranteed Minimum (£/per MW Installed)

Lifecycle Guaranteed Min (million)

Lifecycle Gross Revenue (million)

Kype Muir

1.50%

£5,000

11

12

Harting Rig

4%

£5,000

7.65

20

Total

2.50%

£5,000

18.65

32

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Support this Project

Thank you for supporting our Community Partnering proposal. Please enter your details in the form below and let us know your reasons for supporting Community Partnering in the free text box below. Some examples are:

  • New much needed family homes for local people
  • Community improvements
  • New play areas
  • New footpaths and cycle-ways
  • Contribution to local education provision
  • Highways improvements to the local area
  • Improved drainage facilities

Get in touch

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It helps us to shape the way we operate and to continually improve our performance. It is very much part of our development with care approach.

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