Harlaw Hydro Limited is a community business formed in 2012 to set up and manage a 65KW water turbine on the Waters of Leith at Balerno, near Edinburgh.

1. Harlaw Hydro Limited
Harlaw Hydro Limited is a community business formed in 2012 to set up
and manage a 65KW water turbine on the Waters of Leith at Balerno, near
Edinburgh. Much of the capital required has been raised by a community
share issue. Income generated from electricity sales to the grid will cover
the running costs of the plant and provide a surplus to support local
community projects.

2. Co-operative Development Scotland is the arm of Scottish
Enterprise working in partnership with Highlands and
Islands Enterprise that supports company growth through
collaborative and employee ownership business models.
For more information or advice on employee ownership,
email info@cdscotland.co.uk or call us on 0141 951 3055.
Follow us on Twitter @cdscotland
Co-operative
Development Scotland
27 Causeyside Street
Paisley PA1 1UL
www.cdscotland.co.uk
Scottish Enterprise
Atrium Court
50 Waterloo Street
Glasgow G2 6HQ
www.scottish-enterprise.com
Martin Petty, Harlaw Hydro Director
SE/XXXX/Mar15
Harlaw Hydro
2 Main Street
Balerno
Scotland EH14 7EH
Web:
www.harlawhydro.org.uk
“The support from CDS was vital in helping us set-up Harlaw Hydro.
They brought free expert support and a depth of experience. It is
difficult to imagine where we could have got to without their input”.
The project concept emerged as one of a number
of ideas from the volunteer directors of Balerno
Village Trust Board, a vibrant local group focused
on developing and improving Balerno for the
benefit of its residents. Collectively the Village
Trust’s directors bring a range of professional
skills - economic, business and legal - as well as
a strong commitment to the community.
Attention quickly focused on the possibility
of installing a water turbine on the Waters of
Leith. The river was seen as an untapped natural
resource flowing through the community which
could be used to advantage. Using Feed In Tariffs
(FITs) for the electricity produced would both
cover the running and finance costs and generate
income to pay for community projects in Balerno.
The group started meeting in 2010 and received
early support from Co-operative Development
Scotland as well as Community Energy Scotland
and the Co-operative Enterprise Hub. This
package of support enabled the co-operative to
be supported through its three year development
process.
To allow community members to invest in the
project it was decided to establish Harlaw
Hydro as an Industrial and Provident Society
(IPS) rather than a limited company. Under the
IPS model, ‘community shares’ can be offered
for sale publicly. It was agreed to set the share
price at £50 and to aim to raise around half of
the funding package via community shares,
with the remainder sourced from bank loan and
donations.
The IPS model was particularly well-suited as a
legal structure because its ‘in-built’ co-operative
constitution ensures that democratic processes
are strictly followed - which is ideal for many
community-owned businesses.
THE CO-OPERATIVE
• Harlaw Hydro Limited was registered as a
Society for the Benefit of the Community in
September 2012.
• The Board is elected by the Society’s members
(i.e. its shareholders), with the exception of
three directors appointed by Balerno Village
Trust.
• Community energy projects can have a
long lead time and usually require real
determination to succeed. The group started
meeting in autumn 2010 and the ‘golden spade’
event, to mark the start of the construction
phase, took place in September 2014.