DEVELOPMENT

Our core business is development. We aim to have a substantial number of owned and operational schemes across Wales within the next 3 years. There are no other companies within Wales that actively seek to invest in Micro Hydroelectric schemes, which means that North Wales Hydro Power is a specialist company operating within a niche market. We are a local, flexible company, able to offer different types of investment according to the individual circumstances of the landowner.

There are two primary types of investment vehicles for development and they are either through an Option and Lease or a Joint Venture.

Option and Lease

An Option and Lease development essentially means that a landowner gives a developer the opportunity to gain planning and licencing for a scheme on their land. If the developer is successful in their application then a lease is entered into on pre-agreed terms. This type of agreement is most commonly used and means that a landowner will not have to spend any money at any stage throughout the development process; the risk is therefore taken in full by the developer. The developer is responsible for all of the costs associated with the scheme and in return for this the landowner will receive a percentage of the gross income generated by the scheme. This gross income is the rent payable in accordance with the terms of the lease providing the landowner with a secure, index linked income.

Joint Venture

The half-way house option whereby a landowner may want to commit some money to a scheme but not all of it results in what is termed a Joint Venture. A Joint Venture is where two parties work together to share the risk of a project – all costs and profits are shared according to the percentage split within the Joint Venture. North Wales Hydro Power is one of the very few companies across the UK able to offer this approach, and we are able to do this as a result of our size and our flexible approach.