The £5 million loan is the first of its kind in Europe. Image: Westmill Solar

Westmill Solar Co-Operative has completed the first ever cross-border co-operative solar investment in Europe for a community energy project.

In partnership with a number of energy co-ops in Spain, France, Belgium and the UK, Westmill Solar Co-operative has agreed an innovative finance deal with REScoop Mutual for European Communities Investing in a Sustainable Europe (MECISE).

Westmill Solar Co-Operative secured the £5 million loan over a ten-year period in order to refinance the 5MW Westmill Solar community energy project in Oxfordshire, England. This new funding injection will allow Westmill to secure its future for the next decade, increase investment in other local energy co-ops, and explore the possibility of expanding the project, including the possible installation of co-located battery energy storage systems (BESS).

Working with REScoop MECISE, five different energy co-operatives across four European ries, with a combined membership of over 170,000 people, will share the Westmill investment.

REScoop MECISE is a pan-European initiative designed to encourage European citizens to collaborate across borders to fight climate change. The organisation is supported by RESCoop.eu, the European federation of energy co-operatives. RESCoop.eu represents 2,250 energy co-operatives across Europe with around 1.5 million members.

Karel Derveaux, for Ecopower, president of the REScoop MECISE board, said: “This is a genuinely groundbreaking deal – a network of the biggest energy co-operatives in Europe using the strength of their finances to raise funds in a completely new way. It required close cross-border collaboration which wasn’t without its challenges! But we proved that the cooperative approach, with all the due diligence and legal safeguards you would expect, can achieve the same level of professionalism as any other major investment.”

Tom Parkinson, chair of Westmill Solar, added: “Borrowing from other co-operatives, rather than from banks or private equity, directly connects us to an international community of citizens committed to sustainable energy. We’re confident it will be the first of many such partnerships.”

Dirk Vansintjan, president of REScoop.eu, said: “European co-operatives are proving we can create a radical yet professional alternative where communities and citizens, rather than wealthy investors, shape the future of energy. We are united in our concern about climate breakdown, and this collaboration shows that by working together, we can take meaningful action.”

Community solar and finance

As explored in a previous Solar Power Portal blog, community energy is rising in popularity, especially in the solar sector. As community energy groups grow, the need for larger, more innovative financing solutions also grows.

Bristol Energy Cooperative, one of the UK’s most successful community energy organisations with a 12MW solar portfolio, launched its tenth community share offer in May of this year. For this finance raise, the co-op partnered with ethical bank Triodos Bank for the first time and is seeking to raise £1 million to boost its solar portfolio by 1MW.

More recently, Ripple Energy announced that it has successfully financed the construction and development of the 42MW Derril Water Solar Park thanks to a £21.8 million loan package from Virgin Money. The Derill Water Solar Park, which is set to become operational in spring 2025, will be the first major solar park in the UK where members share both the power the park produces, as well as part-ownership in the development.

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