APPENDIX 1 ~ ATTACHMENTS

NEW ENGLAND TABLELANDS COMMUNITY WIND FARM FEASIBILITY STUDY

AUGUST 2011

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OF

CONTENTS

1Farming the Sun ~ Community Solar Enterprise..........................................................................................................4 2New England Sustainability Strategy..................................................................................................................................6 3Milestones............................................................................................................................................................................................. 7 4Consortium Partner Roles & Responsibilities...................................................................................................................8 5Community Survey.......................................................................................................................................................................... 9 6Legal & Governance Research Matrix...........................................................................................................................15 7Community Participation.........................................................................................................................................................16 8Regional Communication Reach......................................................................................................................................17 9Online Media Reach.................................................................................................................................................................. 18 10Media Profile................................................................................................................................................................................. 20 11Planning Forum Process (Sample)...................................................................................................................................22 12Community Investors...........................................................................................................................................................23 13Additional Opportunities.......................................................................................................................................................24
13.1Turbine Tourism.................................................................................................................................................................................................................................. 24 13.2International Year of Co-Operatives.................................................................................................................................................................................. 25

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FEASIBILITY STUDY ILLUSTRATION INDEX

Illustration 1: Emily Thomas Moore & Stephen Gow, NESSiE ~ Accepting 2010 Armidale & District Chamber of Commerce Award for NESS........................................................................................................................................................................................... 6 Illustration 2: Major Milestones....................................................................................................................................................................................... 7 Illustration 3: Community Participation................................................................................................................................................................. 16 Illustration 4: Communication Reach Statistics............................................................................................................................................... 17 Illustration 5: scribd Statistics........................................................................................................................................................................................ 18 Illustration 6: FaceBook Usage Statistics............................................................................................................................................................... 19 Illustration 7: Northern Daily Leader, Turbines Whipping up Interest.................................................................................................. 20 Illustration 8: Glen Innes Examiner, Strong Support for Wind Farm..................................................................................................... 21 Illustration 9: Survey Findings: Which Investors fit the "Community-Owned" Purpose?.........................................................23

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1 FARMING

THE

SUN ~ COMMUNITY SOLAR ENTERPRISE

Farming the Sun is a unique community-scale solar & sustainable energy initiative that has been a significant contributor to the massive uptake in solar energy in the New England Region. It is coordinated by Starfish Enterprises to address the priority for 'new energy' identified in the New England Sustainability Strategy, or NESS.
In mid 2008, at the same time as work was beginning on NESS, the high community profile created sparked interest from AusEnergy, a boutique solar power company who had been prototyping a community 'bulk-buy' model in Beaudesert, Queensland. AusEnergy contacted Adam Blakester, NESS Convenor, and suggested a similar initiative could work for New England. Dozens of local organisations and community leaders assessed the opportunity. A new network of partners formed to make it happen. By November 2008 the first phase of Farming the Sun was launched by Richard Torbay MP and the first fifty solar power systems were taken up in less than 7 days ~ doubling the amount of solar power in the Region in only a week. The prices were a mere 1/3 rd of the previous retail cost in the New England. $6.5m+ Green Economy & Three Dozen Tradespeople Skilled Up AusEnergy provided training for Howard's Electrical, Rory Cahill Electrical & a team of young graduates from the Iron Man Welders initiative. While $6.5m of solar systems installed through Farming the Sun has created significant local 'green' jobs & business. Quality Solar Hot Water Launched At the same time local resident and economist Liz Gardiner had been researching a solar hot water 'group buy', confirming how important high quality technology was to sustainability ~ particularly to meet the demanding cold climate of Australia's only high country city-region. Endless Solar became the second Industry Partner for Farming the Sun ~ the clear leader from a field of ten local & national suppliers considered. Endless Solar supplied their high quality evacuated tube solar hot water system at 1/3 rd off retail price and trained more than two dozen local plumbers and installers ~ including Hone's Plumbing & Air Conditioning and Schumacher Plumbing.

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New community champions also came on board ~ Tony Windsor MP officiated the second stage launch with support from Senator Christine Milne of The Australian Greens. Other local champions included Mayors Peter Ducat and Mark Dusting, and Aboriginal Elder Steve Widders. 3.5Million Kilograms of CO2 Saved Per Annum Already Nearly 180 solar power systems have been installed, some with trackers, & the largest being a 30kW solar farm. Plus 110 solar hot water systems are in place saving the equivalent of 110 family cars in CO2 per year.
Affordable Solar Energy

Country Energy data shows that in just two years the number Government Low er Community Incentives Prices Savings of solar power systems in the Region has grown by 500% & the power being generated by 700%. Plus four new solar companies mean the community is well on its way to becoming a Solar Region. Navigating Challenges ~ A Key to Success The renewables industry is new and dynamic. Three rebate changes, the early removal of the $8,000 solar power rebate & the early cancellation of the Green Loan undermined community understanding & confidence. Volatile prices for Renewable Energy Certificates & their questionable environmental impact only made things harder. The local partner network have navigated these stormy seas ~ with changes made to the NSW Solar Bonus Scheme led by Richard Torbay proving our local capability & influence. Solar Thermal Air Heating & Wood Smoke Following a year of research the SolaMate solar thermal air heating & cooling system was selected and launched in July 2010 ~ at wholesale prices. This award-winning technology is very energy efficient & will also help tackle the serious public health issue of wood smoke. Local training was again provided & the first ten installations are are being monitored to measure their impact. Long Term Benefits & A Community Owned Wind Farm 1% of project budgets are being invested into new sustainability initiatives. The first was the inaugural YOUth LEADing Australia Congress in 2009 ~ one of six held in Australia ~ and over a dozen locations for 2010.

Farming the Sun is an initiative to address the priority for new energy identified through the New England Sustainability Strategy.

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2 NEW ENGLAND SUSTAINABILITY STRATEGY

The purpose of the New England Sustainability Strategy, nicknamed NESS, is to create a whole of region and whole of community approach to addressing the sustainability of the southern New England Tablelands Region (encompassing Armidale, Guyra, Walcha and Uralla local government areas). The Strategy identifies a shared vision, with seven key focus areas addressing the business of biodiversity, new energy, economic innovation, cultural creativity and capacity, social inclusion and wellbeing, youth and space for wild ideas to bloom. A framework for a comprehensive measurement scorecard has been established to guide reporting, data aggregation and analysis to assess progress and performance. NESS is a collaborative, open and inclusive network governance model for creating a sustainable region. Its unique contribution to the region's shift to sustainability region is through collaborative, multi-stakeholder strategic planning, performance and progress reporting, analysis and learning. The meaning given to sustainability is similarly broad and inclusive ~ taking into consideration many dimensions of our quality of life with a view to improving and enduring for generations to come. Social, environmental, economic, global, local, cultural, Aboriginal, youth, spiritual and other dimensions have been considered.

Illustration 1: Emily Thomas Moore & Stephen Gow, NESSiE ~ Accepting 2010 Armidale & District Chamber of Commerce Award for NESS

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3 MILESTONES

Illustration 2: Major Milestones

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4 CONSORTIUM PARTNER ROLES & RESPONSIBILITIES

Capabilities, Knowledge & Networks Governance, Partner Network Coordination, Stakeholder Dialogue, Documentation & Reporting Landholders Investors Consortium Partner Starfish Enterprises

Southern New England Landcare (SNELCC) High Country Urban Biodiversity Project (HiCUB) The Community Mutual Group (TCMG) The University of New England (UNE) Armidale & District Chamber of Commerce (ADCC) The Community Mutual Group (TCMG) The University of New England (UNE)

Energy Buyers

Relevant Government regulation, Embark legislation, programs & issues Community Power Agency (CPA) Community Engagement Legal Matters Sustainable Living Armidale (SLA) Wilson & Co Lawyers NSW Environmental Defenders Office (EDO) Community Power Agency (CPA) Embark Embark Community Power Agency (CPA) All Partners

Community Renewable Energy Research Risks & Opportunities

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5 COMMUNITY SURVEY

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6 LEGAL & GOVERNANCE RESEARCH MATRIX

Research Topics Co-Operatives
Legal Options Fit for Purpose Case Studies

Starfish, Contractors, DECCW

Jarra Hicks & Nicky Ison New Case Studies (Embark format for publishing) ~ Minwind (Farmer Owned) DECCW Community Co-operative Handbook

Legal Firms
EDO Trading/Non-Trading For Profit/Non-Profit Active Membership Taxation Disclosure Statement Reporting & Filings Wilson & Co Unlisted Public, Community within Commercial Taxation Prospectus & Product Disclosure Statement Reporting & Filings Wilson & Co Stake Holding Model (in-kind & pro-bono; discounted; beneficiaries & affected eg. neighbours)

Embark/Hepburn
Legal Structures Summary Hepburn International Case Studies

Hybrid Structures
Legal Options Fit for Purpose Case Studies

Jarra Hicks & Nicky Ison New Case Studies (in addition to Embark)~ Mount Barker Windfarm, WA Bendigo Bank, Community Energy Australia Jarra Hicks & Nicky Ison Hepburn investor analysis DECCW Community Wind Co-Op Research

Middelgrunden

Raising Investment & Development $

Membership Shares Grants Donations Loans Other

International Investment Models Bendigo Bank, Community Energy Australia Future Energy Success Fee Embark Funding Financial Modelling Self Managed Superannuation Investment

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7 COMMUNITY PARTICIPATION
The findings are grounded in a significant scale of community participation and engagement. As highlighted in the figures (right) more than 1,300 individuals have directly been involved in this Study. 'Community' here means the 'whole of community' ~ local businesses, individuals, Council, government agencies, investors and more.

Illustration 3: Community Participation

Note: These figures are not discrete and are likely to include multiple references to some individuals or organisations.

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8 REGIONAL COMMUNICATION REACH

The communication reach figures detailed (right) reflect the number of direct contacts through the communication network established.

Illustration 4: Communication Reach Statistics

Note: These figures are not discrete and are likely to include multiple references to some individuals or organisations.

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9 ONLINE MEDIA REACH

New England Wind established a web presence (rather than simply a single website) utilising the following fit-for-purpose sites. The number of visits for each are noted in brackets where available:
http://www.facebook.com/NewEnglandWind (11,496) ~ community network building, discussions and links; and, http://www.scribd.com/NewEnglandWind (5,270) ~ document storage and archive for reports, fact files, media coverage, research; http://newenglandwind.shutterfly.com/ ~ photo and video footage; and, http://www.linkedin.com/groups/New-England-Wind ~ professional network building, discussions and links.

Each site is cross-linked with the Starfish website providing a central portal. New England Wind has been promoted via partner websites too. Sustainable Living Armidale recorded nearly 600 visits, and a presence has been established on the Embark Wiki.

Illustration 5: scribd Statistics

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Illustration 6: FaceBook Usage Statistics

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10 MEDIA PROFILE
In addition to these direct contacts a larger number of people were reached through wider range of partner website links, newsletter articles (HiCUB, SNELC, SLA), emails (Renew Reference Group List, HiCUB, SLA, Clean Energy Council) and exhibits (Armidale Markets, PCYC Markets, ADCC Member Meet, Walcha Show, Landcare Adventure and GasLands screening). Significant media coverage was also achieved (television, radio and print). Media Releases were issued, for television, radio and print for each major activity and milestone. These were issued by a mix of Starfish and Consortium Partners to convey an underlying message that a wide range of key local organisations were involved.

Illustration 7: Northern Daily Leader, Turbines Whipping up Interest

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Illustration 8: Glen Innes Examiner, Strong Support for Wind Farm

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11 PLANNING FORUM PROCESS (SAMPLE)

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12 COMMUNITY INVESTORS

Illustration 9: Survey Findings: Which Investors fit the "Community-Owned" Purpose?

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13 ADDITIONAL OPPORTUNITIES
13.1TURBINE TOURISM
Sydney Morning Herald, 23 January 2008, Natalie Muller Wind farms are providing more than power - they are also bringing in the tourist dollar... The novelty of the white windmill forests is something that is attracting curious visitors in droves. At a time when climate change and renewable energy are concerns, it is not hard to understand why there is an interest. Most wind farms in Australia cater for tourists, providing viewing platforms and information booths. A wind farm in Albany... has a network of paths around the base of the turbines, with boards with stories and facts. Jon Berry, the manager of economic development at Albany Council, said the turbines had enhanced the value of the area. "The combination of the wind farm and a spectacular coastal setting has made it the most popular tourist destination in Albany," he said. Tim Brady of Codrington farm, which has been in Brady's wife's family since 1856 is near Port Fairy, Victoria. In 2001 it gained 14 wind turbines and became Australia's largest (at the time), and Victoria's first, wind farm. An open day for the public in 2001 showed just how much interest there was. "Thousands of people showed up. We were bowled over by the amount of people who came out to the country to have a look," Brady said. Codrington still functions as a farm, and cattle and sheep roam between the turbines (which take up only 1 per cent of the land). Brady runs tours in and around the turbines. Helen Schuuring runs wind-farm tours at Tasmania's Woolnorth farm. She has been giving tours of the property since 1980. After the 37 wind turbines were added, she said, the number of visitors increased by about a third.

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13.2INTERNATIONAL YEAR
OF

CO-OPERATIVES

The recommended use of a Co-operative structure for New England Wind in part reflects the strong international history and reputation of co-operatives advancing the community governance and benefits. The United Nations General Assembly has declared 2012 as the International Year of Cooperatives, highlighting the contribution of cooperatives to socio-economic development, in particular recognising their impact on poverty reduction, employment generation and social integration. This timing provides a potentially significant platform for profile, partnerships and support for New England Wind, and the pursuit of co-operative owned renewable energy more widely. Community and co-operative owned energy is responsible for 86% of all wind power in Denmark and a remarkable 90,000 employees in Germany delivering 8% of their total energy. The co-operative sector worldwide has nearly a billion members, with membership as high as 1 in 2 people in Finland and Singapore, and one in three in Canada, New Zealand, Honduras and Norway. In New Zealand, co-operatives account for 22% of GDP. Financial co-operatives serve an estimated 857 million people, or 13 percent of the world population. Some 49,000 credit unions serve 177 million members in 96 countries, under the umbrella of the World Council of Credit Unions. It is estimated that co-operatives account for more than 100 million jobs around the world.

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