Windmine Interview
Windmine Interview
Interview with Paul Mines - Owner of Windmine
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We recently published an article about Windmine a new company offering Personal Wind Power Generation which attracted a lot of interest on the REUK.co.uk website. Managing Director of Windmine Mr. Paul Mines kindly agreed to be interviewed to tell us more about the project.
Mr. Mines, please tell us a little about yourself.
I am, 43 a mechanical engineer by training with an MBA from London Business School. I have worked for ICI plc and Courtaulds plc as an engineer and as a Director. Over the last 9 years I have been CEO of a global packaging business making FMCG goods. In early 2006 I branched out into the renewable sector and as well as running Windmine I am now advising two other wind sector companies. I have a passion to bring a professional commercial approach to the renewable sector and to leverage my previous commercial and global sourcing experience to bring economic power production within reach for individuals and businesses.
What is the history of the Windmine project - how did you come up with the idea?
The project started in early 2006. The project came out of an initial idea to put a wind-turbine on my own home. As I began to look into this, I realised that the roof mounted turbines produced very little power and that urban areas were not good for wind generation. I then began to look at garden mounted systems of 6kw to 15kw that could produce a meaningful amount of electricity relative to my domestic usage and began to talk to those who had (or had tried to) install them. What became clear from talking to consumers and those in the industry was:
a) There are an increasing number of individuals and businesses that want to do something meaningful about their carbon footprint via their own power generation
b) The process for buying and installing and individual turbine (including planning) often took a year or more of hard work
c) Choosing and installing a wind turbine for those outside the industry required a significant self education and perseverance (it is difficult to know what turbine to choose and their are not any clear winning brands in the market)
d) With 70% of the UK population moving house within 10 year period and with paybacks on wind turbines around 10 - 15 years many owners will not see a return on their investment before they move and may be put off for this reason
e) Much of the cost of a residential or business wind turbine installation is not in the turbine but in the "one-off" nature of site appraisal, planning, design, cabling etc. - this can only be eliminated with scale.
f) There are a group of consumers in urban areas that cannot not due to location or planning permission ever hope to generate their own power economically.
g) The sensible place for wind micro generation is in rural not urban locations (farmers are keen on additional income and wind turbines only use a 2%-3% land footprint)
These all inspired me to think about how to fill this gap in the market and the concept of what is effectively "hosting" turbines came during one long train journey! Windmine is focused on making the purchase and ownership of a personal substantive wind turbine easy, safe and straight forward. What we intend to offer, in the fullness of time, is the ability to choose from a limited list of well tested turbines, make the purchase immediately and then the turbine erected at site within a couple of weeks. Thereafter, transmission losses through the National grid are relatively small and are outweighed by the benefit fit of installing the turbine on a great windy site. As well as site visits, the internet provides the perfect vehicle for owners to see and monitor the performance of their turbine and relate to how and when the power is produced.
Did you hit any problems along the way?
Problems.......Throughout, almost every one I have spoken to within and outside the renewable industry has been positive about the idea. The concept is, however, in a new market "space" and has not (to our knowledge) been attempted before. This has meant we have had to start form first principles in many areas both in marketing and in technical delivery of the project. Financially the government LCBP grant scheme requires the turbine to be built at the registered home of the individual applying from the grant - we believe this is an oversight and comes from this time of scheme not being envisaged when the scheme was define - we are lobbying on this item and believe our model will work without grants (and indeed has to in the longer term).
For how many wind turbines do you have planning permission?
Planning permission is in process for 20 turbines at two sites in Essex - commercial sensitivity prevents release of the final location at this time. Initial planning and neighbour reaction has been positive as the the turbines are seen as tree height and not visible at significant distances. We already have permission on a site in Scotland for 10 units that will be close to an existing large scale wind farm and has had no adverse neighbour reaction.
Who are your target customers?
Individuals and businesses who want to negate their Carbon footprint in a meaningful way.
Individuals and business who want to generate their own renewable power but are constrained by such issues as location, planning, neighbour objections or just don't want a turbine in their garden or on their roof.
Individuals and business who want to move quickly and have a turbine now!
In our initial launch we are looking at individuals and businesses that can afford £35k initial outlay - further into the project we plan to offer funding packages and shared ownership schemes.
Why many smallish turbines owned by individuals rather than one or two large turbines owned collectively?
There is a place in the market for large turbines own collectively but frankly this is little different to buying energy from a green distribution company that sources from renewable sources. Further I believe that there is only a limited number of onshore large scale wind farms that will make it through the planning process. Windmine windfarms are tree height and really are like "farming the wind" providing rural income with low visual impact outside field boundaries.
Further, I think that the Climate Change challenge that faces us demands that we take personal responsibility for our energy production and our emissions. Collective ownership by its very nature still a step removed from individual responsibility. Individuals are keen to take this responsibility and have shown this by fitting small turbines to their houses and mid-size turbines in their gardens - Windmine makes this easier and open up the opportunity of scale generation of those living in urban areas.
How are sales so far? What are your targets?
Five units have been sold so far since initial marketing in late-December. We are looking to sell a further 15 over the next two months to sell-out the first mini windfarm in Essex.
What next for Windmine?
We intend to announce our green energy distributor within the next few weeks. We have two other sites coming on behind the first site, one of which has the space (with low visual impact) for 200 turbines. We intend to offered alternative financing and ownership options.
Article Last Modified: 14:42, 15th Jan 2007Comment on this Article
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