Co-operative Energy has begun sourcing power from a community-owned generator in Gloucestershire, saying it enables its customers to part own both their energy supplier and local generator.

The gas and electricity supplier, established in 2010, estimates that the new wind turbine, operated by Resilience Energy Great Dunkilns (REGD) - a collaboration between environmental consultancy, The Resilience Centre, and the owner of the land at Great Dunkilns, farmer Anthony Cooke - will create in the region of 1.5 million kilowatt hours (kWh) of electricity annually, powering the equivalent of 300 homes.

Comprised of a single 500kW wind turbine, the project was financed through Abundance Generation, a community finance platform that enables would-be investors to help fund the cost of renewable energy projects. Investments begin at £5 and are made in the form of debentures (a certificate representing the loan).

In addition to individual returns, estimated to be between 7 and 8 per cent over the lifetime of the investment, the organisation also donates a proportion of annual profits to the community itself, in the hopes of further encouraging people to support its local projects. In the case of REGD, it is hoped that around £15,000 will be given back to the community every year.

Co-operative Energy, the only UK energy supplier wholly owned by its customers (who are rewarded twice a year with a share of profits), says that members of the scheme can benefit from part-owning both their community generator and the company that supplies their power, creating a ‘chain of end-to-end community ownership.’ As an extra incentive, it is offering all REGD investors, including those that invest before the end of October 2012, £50 credit in their Abundance account if they switch to Co-operative Energy.

Nigel Mason of Co-operative Energy said: “By sourcing energy from community energy schemes like Resilient Energy Great Dunkilns, we’re helping to tackle climate change and we’re supporting the local economy too.

“This unique deal not only means our customers are benefiting from clean, cost-effective energy, it is also providing the community with income to invest in their local economy and financial returns for anyone who has invested in the project. It’s a great deal for all.”

Meanwhile, the Resilience Centre, established by Sue and Andrew Clarke in nearby Woolaston, hopes to embark on further projects in the future, and has already begun working with Co-operative Energy to develop a micro hydro scheme on the River Lyd in the Forest of Dean.

Andrew Clarke explained: “We set out to close the loop on local energy by providing a way for people to invest in a local renewable energy scheme and buy the energy back from that scheme, in effect putting their own money back in their pockets.

“By investing in these projects, communities are investing in their own future resilience and linking savings returns to energy prices. Recent news on receding Arctic ice and the accelerating effects of climate change call for decisive and urgent action. Our projects provide a way for people to get involved at a scale that can make a positive contribution to future generations whilst earning a good return.”