E5 Energy

by E5 Energy Ltd
Loan

This offer has been signed off by Trillion Fund Ltd

About the project

More about the project

NB. For lenders to this project concerned about the impact of the end of the Renewable Obligation subsidy for onshore wind, please note that this announcement will not affect your loan to E5 Energy. For more information, read this blog.

How the tranche system works

Now that the project has passed the £1.25 million "tipping point", each new £250,000 raised represents a new tranche, equivalent to the value of one new turbine added to the security, up to a maximum of £2.5 million. For more on why we are raising the money in this way, read this.

Technology

Known as “small-scale”, “distributed” or “farm” wind, these turbines do not form part of a large wind farm, but instead are single installations in rural locations that power a single site, such as a farm or business park.

They are “50kW” turbines, however they have the capacity to produce up to 80kW of power at any given moment dependent on the strength of the wind.

They are known as Endurance E3120s, which differ from other makes of turbine because at 3,120 sq ft, the swept area of the blades is relatively large for the size of the turbine.

The technology used inside is proven, including Siemens gearboxes and ABB generators.

Guide to wind power

Watch our ‘investing in wind’ video

 

Case study lender

 

 

 

 

 

 

 

 

Robert West, a biostatistician at the University of Leeds

“I have less than ten years until I retire. My university pension scheme is quite good but I do look for alternatives and have a small portfolio of p2p investments as part of broader investment.”

 

 

Share your comments

Opinions and comments mentioned on the Trillion Fund Web site are the personal views of individual contributors. Trillion Fund takes no responsibility for these views.
Theresa Burton 16 July 2015 - 12:49

Hi Onepk,

First of all, we would like to assure you that the announcements do not affect any previous loans offered by Trillion Fund, such as E2 and E5 Energy, or the ability of the borrower to repay them.

The Government has decided to end the Renewable Obligation incentive for onshore wind development one year earlier than planned, in April 2016.

It is important to note that when the Government announces that an incentive will end or be reduced, this usually only applies to future and not existing installations. In other words, it is not "retrospective".

This announcement also only applies to the Renewable Obligation incentive for larger-scale developments. There are still incentives available for smaller-scale and "community" onshore wind.

The incentives for which the turbines in both the E2 and E5 Energy loans are eligible are Feed-in tariffs, which apply to smaller-scale wind turbines. Feed-in tariffs for smaller-scale wind installations were unaffected by the recent announcement.

The turbines in the security for the E2 and E5 Energy loans are also already operational, generating the revenue from which the interest payments are derived. The Feed-in tariffs they receive were set on the date of installation and will not change for 20 years thereafter (except to rise or fall with inflation).

The announcement may mean that in general, there are fewer chances to invest in new UK onshore wind developments in future. However, the UK's enviable fleet of existing onshore wind turbines should continue to present re-financing opportunities for years to come.

I hope this helps answer your question.

Theresa
Trillion Fund

Theresa Burton 16 July 2015 - 10:23

Hi Clive147

As this is a loan and not a share offer, we do not issue any share certificates and the details for your loan are held online in your TrillionFund.com account plus the original Offer Document for the loan. However we are happy on request to send you a PDF version of your loan agreement. We will contact you by email to arrange this.

I hope that helps clarify. Kind regards,

Theresa Burton
Trillion Fund

Clive147 15 July 2015 - 13:44

Hi - will I be getting any certificate or other paperwork showing the shares purchased?

Onepk 24 June 2015 - 18:06

Hi Theresa,
I've seen some comments the project made (on another site I think), but could you in a few sentences record here what you see as the likely effect (if any) of the government's current/future wind-subsidy policy on investments already made into this project? Thanks

Theresa Burton 15 May 2015 - 10:52

Hi Onepk and John,

Apology for the delay. There is the possibility to transfer a loan to another individual. Note the transfer will require that the new registered lender meets the same conditions as the original lender; must be an EU citizen resident in the EU, must be 18 years or older, and must have an EU bank account. The new registered lender will need to pass our "Know Your Customer" (KYC) checks as well so we will require identity checks for them to meet regulatory requirements.

There is also the possibility to transfer to a company or a trust.

Currently, to request a transfer once a loan has been made, the original lender will need to email contact@trillionfund.com to notify of the transfer and the new lender will need to register on Trillion Fund and pass KYC.

all the best, Theresa
Trillion Fund

Onepk 10 May 2015 - 15:40

Why no answer to John Dalton's question? It sounds an interesting idea to me and a good way of making others aware of this kind of investment.

Cheeky John 01 May 2015 - 12:24

I'm thinking of giving an investment in this as a birthday present to someone. How do I go about it? Do I set up an account for them, pay in from my bank, and write the details in a birthday card so they can take over? What do you suggest?

Theresa Burton 16 April 2015 - 20:54

Hi Debbie - the minimum raise (Tipping Point) is £1,250,000 as mentioned in the project description and in the Offer Document. Although the progress bar is displaying correctly on the Home Page and for the Project Thumbnail, we have a small visual correction to make on the Project Page. We hope to fix this small visual alignment issue shortly however there is no issue with the underlying system.

best regards, Theresa
Trillion Fund

Debbie 16 April 2015 - 18:10

Today it's £1,102,370 subscribed against a tipping point of £1,250,000 so still £148,000 to go. But your display on this page shows a red line indicating the tipping point has been exceeded - why is this?

jsg 28 March 2015 - 08:08

Hello Jonty, the names of the locations of the turbines are in the offer document. Because they are all on private land, we haven't published the postcodes. I can ask Earthmill if I can share part of the postcode, do you want to send me your email address? Julia@trillionfund.com. I will also check the insurance cover. Julia

Jonty25 26 March 2015 - 16:57

Also does your insurance pay lost income after five days as mine does?

Jonty25 26 March 2015 - 16:56

Are you able to tell us where the turbines are? I have an E-312o installed by Earthmill so know how they perform and would like to see the location so I can make my own judgment on predicted performance.

Charlie Pool 26 March 2015 - 14:20

Hello Muse,

I have checked with Endurance who have confirmed that in the event of a fire the insurance cover that they have for the turbines would cover 'full replacement cost'.

Thank you,

Charlie

Muse 20 March 2015 - 11:39

Are you insured for loss of the turbine through fire? And if that were to happen, what would your policy be? Would you have enough of a payout to rebuild the turbine or would it need to be considered lost? Thanks (just wondering since it has been known to happen, unfortunately).

jsg 19 March 2015 - 18:49

Hello Luxah,

Yes, the loan is secured against the turbines that are already operational, but the money raised will then be used to build more turbines. So lenders have the benefit of the security agreement but also the satisfaction that their money is being put to work installing more farm wind turbines.

Note that the new turbines will not be owned by E5 Energy but will instead be in a new 'special purpose vehicle.' So the loan to value is not changed when new turbines are built. If that is in any way unclear give us a call.

Best

Julia

Luxah 19 March 2015 - 07:32

Charlie: following your response to jeff47, in which you say that all the wind turbines are up and running: will you be looking for any more sites?

Charlie Pool 11 February 2015 - 11:42

Hi Jeff47,

All the turbines are up and running. They all required planning permission and Earthmill successfully managed that process before they were built.

Thanks,

Charlie

Jeff47 10 February 2015 - 17:25

Can you tell me if planning consent has been given for the wind turbines?

Marius Gjerset 08 February 2015 - 21:17

Thanks for the answer.
I find the solution with 0% interest rent between the payment from me and the start of the loan to the borrower to be a big drawback.
Some reason for not having a solution to give the intestors/lendors the bank interest rent in the fundingperiode from payment to the loan?
I think this would have made more investements earlier in the fundingperiode, as for me.

jsg 28 January 2015 - 09:20

Good morning Marius, in response to your question:

" Is it possible to commit a amount, and pay the money to you the day you have a large enough commitment to reach the target amount?"

We do not count your loan towards the total until your funds have been received so it is not possible to 'reserve' an amount but only pay later I am afraid. This would risk some people pledging but not completing the loan and in doing so blocking others from having an opportunity to lend.

As you correctly say the interest is paid from when the first payment is made to the borrower, which in this case is 14 days after we hit £1.25m.

It is entirely up to you as to when you want to lend, the only date that effects your net return is the early bird which closes on the 28th February.

Hope this helps you decide what suits you best.

Julia

Marius Gjerset 25 January 2015 - 19:04

I would like to participate in this peer-to-peer loan. But do wounder when I should do it during the funding periode.
As I understand the offer, the date the rent will start is not the day I pay the money to Trillion, but the day "the date on which it is confirmed that the Initial Target Amount has been reached and the funds are released by Trillion to E5 Energy." That means that I will get no interest rate from the day I pay to you, until the unding is completed. And if not sucessfull funding before end of april I will get my money back, but with no interest rent?
If this is the case, is it possible to commit a amount, and pay the money to you the day you have a large enought comitment to reach the target amount?





Charlie Pool 23 January 2015 - 13:23

Hi JC,

Capacity factor isn’t something that we model the turbines on as we have actual data that we have used. However, Endurance is seeing a capacity factor of 38% or more across all its turbines and Earthmill have reported a 98.2% uptime across the Endurance turbines that they have installed.

The wind consultants are Jacarandas, a new company set up by Dr Chris Manson-Whitton and Peter Whitton, wind data specialists previously at Progressive Energy. As described on p.16 of the Offer Document, the numbers Jacarandas calculated for the wind speeds at each site were ‘averages’ or means based on data they were able to use from regional and national records. These averages could be described as P50s, although as noted in the Offer Document, the accuracy is limited by the number of historical data points.

Moving on to operational expenditure - the key costs are rent, warranty and services/maintenence, all of which are of course factored into the financial model. There are O&M contracts between E5 Energy and Earthmill and a warranty with Endurance. More details of these are covered in the Offer Document, p.17, 18 and 20. Warranty and service charges are fixed and any repairs/maintenance not under the service and maintenance package Earthmill give are covered by the warranty. The other expenditures (admin fee, insurance, rates, etc.) are relatively small but have all been modelled.

Finally, please note that averaged wind speeds can be assumed to have a Gaussian distribution, so if you wanted to it is possible to take the P50 value and the standard deviation of the dataset to model the distribution, and then calculate other confidence limits, P90 etc based on that. Trillion Fund has not done this but I could help you look into it if you so wanted to.

I hope this is useful, please do not hesitate to ask if you have further questions.

Charlie (Commercial Director, Trillion Fund)

jsg 21 January 2015 - 17:30

Hi Tvarela,

We can accept European lenders, but are a bit restricted on the rest of the world and can *not* under any circumstances accept American lenders due to the US regulations.

If you ping a note to contact@trillionfund.com with details of where you are Vanesa or Theresa will be happy to help?

Julia

tvarela 20 January 2015 - 16:40

Do you need a UK banking account to participate in this funding? Are you charging fees to international investors?

JC 14 January 2015 - 11:02

Hi,

Your offer is interesting, but I'm trying to get a view on the risks.

Could you please tell us more about the wind consultants that estimated the ouput? Did they provide P90 and P99 values, or at least the mean annual wind speeds at hub height? I guess you are using the P50 in your offer overview.

You need to hit a 38% capacity factor (1,673,446kWh) to get the announced revenue of £430,132. Based on the E-3120 brochure (http://www.talco.com/wp-content/uploads/2012/09/E-3120-Product-Brochure-NA-20-Feb-2012-Webready.pdf), you need an annual mean wind speed at hub height of 6.0m/s to achieve 38% capacity factor and this level of output. The brochure may give this value for an ideal case though.

If your Opex (£125,724) goes up by 10% and that only 30% capacity factor is achieved (1,315,183kWh -> £338k per annum), then the DSCR falls to 1.0 (and the surplus to zero). That would happen for a mean annual wind speed at hub height around 5.3m/s based on the brochure. Even if your Opex budget is spot on, you need at least 29% capacity factor to get a DSCR of 1.0.

In the UK, it's very possible to find many sites where mean wind speeds at about 30m-40m height (the tower of the E-3120 comes in heights within this range) are above 5.3m/s, so this provides some confidence.

Is it possible to get some confidence in the estimated operating costs and revenue?
Ideally the P90 and P99 energy yield for the portfolio with 3-year uncertainty (or 1-year if you don't have the 3-year one).
About the operating costs, I guess Earthmill is doing everything in-house with support from Endurance? Is there an O&M contract in place between E5 Energy and Earthmill/Endurance?

Thanks,
JC

Operations Trillion Fund 12 January 2015 - 16:11

Hello Hazel,

E5 plans to sell these assets to repay the loan at the end of the term. In the event that a buyer cannot be found, E5 Energy may refinance the loan and repay lenders OR shareholders would have the option to buy back the assets themselves. In the event that neither a sale, buy back or refinance deal were completed, the trustee (Trillion Fund) would take over the assets and sell them on behalf of lenders with the aim of recovering the capital.

Page 18 of the offer document explains this and other risks.

Thank you for your interest.

Julia

Hazel Madden 10 January 2015 - 21:42

How will the company return the loan after 3 years? Does interest continue to be paid if they are unable repay the loan?

Abra 19 December 2014 - 10:10

When you have finished doing farm wind please move on to other small-scale turbine locations including my windy flat!

What do you think?

You need to be logged in in order to post comments
Login
Important - Please Read

Before you buy any loans or investments advertised on this website, you should make sure that you fully understand the risks which are set out in the relevant Invitation Document and you should determine whether the loan or investment is suitable for you on the basis of all the information contained in the Invitation Document. Specifically, in the event that the provider becomes insolvent you may lose some or all of your capital. If you are in any doubt about the contents of this website or the Invitation Document or the action you should take, you are strongly recommended to consult a professional financial adviser. Read more about the risks here.