Progress Report – 25 th June 2013

OBJECTIVE To complete the fund raising for a community hydro scheme at Harlaw Reservoir and ‘make it happen’.

Harlaw Hydro Ltd An Industrial and Provident Society, created for the Benefit of the Community (BenCom) Can sell shares to raise capital A cooperative society owned by its members The specific purpose of owning and operating a micro- Hydro scheme Membership is open to individuals, corporate bodies, voluntary organisations and public sector investors.

Why Should I Invest? Feel Good – a social investment Green Energy Community Cooperative Society Funds for community projects and activities through BVT Financial Benefits 4% interest compares favourably with Savings Account and cash ISAs 30% tax relief through the Enterprise Investment Scheme

90% and Rising!

Shareholders / Society Members

Enterprise Investment Schemes The sale of electricity is an eligible activity for SEIS & EIS HM Revenue & Customs have provided ‘Advance Assurance’ that shares in Harlaw Hydro should qualify for EIS & SEIS Rules for SEIS tax relief a minimum investment of £500 for a period of over 3 years an overall limit of £150k – first come first served spend 70% (£105k) of the capital raised before a claim is made The SEIS process must be completely separate from EIS. i.e. First share issue must be completed and SEIS1 accepted before subsequent share issues and an EIS1 is submitted Rules for EIS tax relief a minimum investment of £250 for a period of over 3 years Harlaw Hydro to be trading for at least 4 months before a claim is made NB Harlaw Hydro Limited cannot give guarantees

How SEIS/EIS Works Harlaw Hydro submit an SEIS1 (EIS1) to HMRC If HMRC approves it will issue forms for Harlaw Hydro to distribute to tax paying investors to claim their tax relief Harlaw Hydro will complete the second share issue and submit an EIS1 after 4 months of trading

The 4/6 Rubber Ducks to line up Planning Permission Granted October 2012 Extraction License Granted by SEPA October 2012 Lease agreement Heads of terms approved by CEC March 2013 Grid Connection Grid connection proposal received from Scottish Power Networks May 2013 Financial Targets Over 90% of target achieved Lower Penstock Repair Lining completed in May 2013

What next? Share offer closes - 28th June 2013 Prime contractor Clerk of Works Tender - preparation in process – to be issued late July. Select contractor August/September Start Build – Autumn 2013 Generating Electricity - Spring 2014

Questions One to one discussion Application Forms Do you have skills that would help the development and implementation?