Mongoose Energy and Our Power have teamed up to tackle fuel poverty in Scotland with the creation of Our Community Energy – a renewable energy investment scheme.
The organisation will harness the power from two Scottish community-owned wind power projects to offer cheaper electricity to those “most in need”.
The wind farms based in Pogbie, East Lothian and Brockholes, Berwickshire aim to raise almost £2.9 million through bond and equity offers.
All surplus profits, estimated at £1.9 million over 25 years will be invested into helping alleviate fuel poverty in Scotland.
Alister Steele, chair at Our Power said the “innovative initiative” will help secure local renewable energy in a cost-effective way and provide the potential for “wider community investment” in the assets.
He said: “Directly linking renewable generation and not for profit ownership to addressing fuel poverty is a really exciting breakthrough.”
Last month, Our Power introduced its first UK-wide tariff called +IMPACT. The 100 per cent green tariff is about “putting power in the hands of the consumer”, the company said.
Mark Kenber, chief executive of Mongoose Energy, said: “The bond and equity offers in Pogbie and Brockholes provide these investors with the chance to earn competitive rates of interest on their investments, whilst also making a huge impact on the lives of others.”
Research from Mongoose Energy, which manages community-owned renewable energy assets, has revealed more than a third of Scots (36 per cent) admit to living in fuel poverty, with this affecting over half (56 per cent) of those aged 18-34.
It also found 74 per cent believe fuel poverty is an issue that must be “solved urgently”, while 38 per cent consider investment in renewable energy projects “as the best solution”, preferring it to increased regulation and fuel price freezes.
Kenber added: “The findings of this research show the critical levels to which fuel poverty has risen in Scotland. It demonstrates that an increasingly purpose-minded public is seeking out alternative ways to invest their money in ways that help solve major issues such as this.
“Their investment choices are no longer driven solely by potential rates of return but also by a desire for a tangible, positive impact on their community.”
The initiative aims to reduce the number of people spending more than ten per cent of their income on heating their home to a basic standard.