Octopus Energy Collective

[Andy]

In a bank you put £1000 in and get 6% each year which you keep. After 20 years you have accumulated £1200 and you can take out the £1000 so you have £2200.

With this, you get 6% each year but at year 20 you don't get the £1000 back. So you have £1200 at the end. Or have I misunderstood it?

[nowty]

In a bank you put £1000 in and get 6% each year which you keep. After 20 years you have accumulated £1200 and you can take out the £1000 so you have £2200.

With this, you get 6% each year but at year 20 you don't get the £1000 back. So you have £1200 at the end. Or have I misunderstood it?

You have misunderstood.

You get 6% return per annum for 3 years, then you also get your initial capital back exactly 3 years from the date the shares are issued, these initial 2 projects are special as Octopus are underwriting your capital return in full, even if the the turbine fails in some catastrophic way. You can then withdraw the capital or re-invest it in something else. Although there is no guarantee of the full 6% per year, going off the past couple of operating years and the forecasts, the 6% income is covered 3 or 4 times over by the net profit of the turbine.

From one of the project offer docs.

[Joeboy]

Oh well. 6% is 6%.
I take it, in the future there will be more offerings as there is a portfolio on the webpage so I would assume there will be different assets such as they have in Ripple

I would expect a solar farm offering next. They've got quite a few.

[Joeboy]

An observation- fan2 is historically outputting more than fan1 by a significant margin and is also a smaller unit. Yet fan1 is selling out quicker, again by a significant margin.

I know both these initial investments are covered by Octopus and that the investment is ceiling limited in profit but I'd have expected fan2 to sell out faster?

Any thoughts as to why this would be?

If there is room left I'm investing again on Thursday and settling on a 2:1 split in favour of Wales.

[nowty]

Probably folk are looking at it at the simple level of fan1 being 500kW versus 400kW for fan 2, but not understanding fan2 is in an area of higher wind resource, therefore is likely to have a higher capacity factor.

Other folk will also follow the crowd, fan 1 is selling out faster so it must be better.

[nowty]

Not long now and in less than a week.

[Joeboy]

I just closed out fan 1!

[Joeboy]

No I didn't, just checked and there's £1,675 left in that 100th percent at 2am if anyone wants the honours? I've got my 2:1 split that i hoped for on fan 2&1 so will leave it be.

Looking forward to seeing the fans run even if the ceiling is limited. I thought the whole process was well managed.

[smegal]

Probably folk are looking at it at the simple level of fan1 being 500kW versus 400kW for fan 2, but not understanding fan2 is in an area of higher wind resource, therefore is likely to have a higher capacity factor.

Other folk will also follow the crowd, fan 1 is selling out faster so it must be better.

Those EWT units are the same turbine that's been de-rated either for FiT or gird constraint reasons etc, so a lower power unit would be expected to have a higher capacity factor.

[Joeboy]

Sitting charging EV in Edinburgh and thought "oh why not"? Closed it out properly this time!

Knocked my 2:1 ratio off whack but it'll help move things along.



Not much left at fan2 now. A Beatles type 8 day week if it closes today.