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10 | 20th - 276 Interview I think quite an important one because it will create followers, it will create momentum, it will create competition. We can do something in a positive sense and disrupt the market." Albion Community Power is a spin-off from Albion Ventures, one of the UK's larg- est investors in business start-ups. The board had to set up a separate fund for renewables, as regulations prohibit funds from claiming both the tax breaks enjoyed by venture capi- tal trusts and renewable subsidies. It repre- sents part of a trend for financial players to get involved in energy generation projects and buy in the necessary technical expertise. The business model "in a way was an accident", says Beckers. "We are a true start-up business… Creating a bit more disturbance in the market is certainly what we are aiming to do." ACP owns and operates brownfield wind turbines, rooop solar, biogas and run-of-river hydro projects. At the moment, the company sells energy directly to local consumers at a 20 to 30 per cent discount to retail prices, but above the wholesale price. By using a "private wire" it cuts out the middle man and earns a tidy margin. A "Licence Lite" is also on the cards, which would allow the company to sell to other customers through the grid. As Albion ramps up its investments, RWE and other major energy companies, particularly in Germany, are tightening their belts. Are traditional utilities doomed? "That is an unfair question," protests Beckers. "[RWE] really found it difficult to align its business model to short-term political changes." The German situation tends to be characterised as a surge of enthusiasm for community renewables, particu- larly solar, causing the downfall of conventional power generation. The reality is not quite as simple as that. The financial crisis of 2008, with a little help from energy effi- ciency initiatives, broke the trend of steadily increasing energy demand for the first time in more than 100 years. Then came the Fukushima nuclear disaster in 2011, trig- gering a backlash against atomic power. German utilities were also bound by gas contracts that were indexed to the price of oil, which turned out to be a raw deal. "That all came together more or less in one year and that is why I think they [utilities] now need to look at their business model," says Beckers. "As a start-up, you don't have that legacy," he adds. "That is why renewables became a no-brainer decision, but we are very mindful that government might change the rules there as well. That is why we are looking at a portfolio of different technologies." We look at the fate of some of Npower's investments during Beckers' time at the top. There was the Horizon nuclear programme, which it sold to Hitachi. Nuclear is a big investment with very long investment cycles, explains Beckers. "Post-financial crisis, it was very dif- ficult to get funding for." Npower built Pembroke and Staythorpe power stations, which made a loss last year amid tough conditions for gas-fired generation. "It was the right investment at that point in time… Do we need gas on the system? Absolutely." Then there was the bio- mass conversion at Tilbury, which was shut down for six months by a fire and then closed in 2013, having run for less than two years. Further upgrades to extend the power station's life were cancelled when government said it would not be eligible for subsidy under the incom- ing regime. "I have to say like many renewables this is where the impact of energy policy shows." Does Beckers wish he had invested more in renewables while he managed a sizeable budget at Npower? He disputes the framing of the issue. "We invested by far the vast majority as RWE into renewables." Drilling deeper into his motivations for joining ACP, it seems Beckers is not par- ticularly worked up about climate change or enthused by renewables for their own sake. He is more interested in making energy infrastructure acceptable to the public and therefore financially sustainable. "Any energy investment will have two-digit break- even periods," says Beckers. "If you are not applying sustainability criteria like climate change, like accept- ability with communities, like a successful return for my investors, you do start to struggle aer five or ten years." Community acceptance (or lack of it) has proved a stumbling block for energy companies developing onshore windfarms, for example. "The perception of the energy business has really deteriorated," says Beckers. "Therefore many things energy companies have done in the past have not been appreciated or welcomed as much as me and my peers in the industry would have expected... You need to find a business model where you enhance the acceptability of what you are doing." Shale gas frackers similarly face local opposition. Beckers thinks they should be allowed to drill test wells, but dismisses the hype around shale. "What I want to have here is a debate which is fact- and evidence-based. Let's do the test drilling. I don't believe that the outcome will be that we can enhance acceptability or become commercially viable or competitive with conventional gas, but I am happy to be proven wrong." With five minutes to the end of the interview, I raise the touchy subject of Npower's tax affairs. ACP's head of marketing interjects: "I really think this is a bit off-track." It is relevant to Beckers' concerns about customer accept- ability and the industry's reputation, I suggest. Beckers allows me to finish the question, covering his mouth with his hand thoughtfully before he answers. The company has been criticised for routeing prof- its through Malta and paying just £5 million in UK cor- poration tax between 2009 and 2011. Campaigners at 38 Degrees claimed the arrangement allowed RWE to dodge £108 million owed to the Exchequer. Npower has always denied avoiding tax, insisting it was considered a "low risk" business by HMRC. The topic resurfaced this year, however, when Beckers was appointed as a non-executive director at HMRC. "A fat cat who helped energy firm Npower's owners avoid millions of pounds in tax now sits on the board of HM Revenue and Customs – as an adviser to the taxman," ran a story in the Mirror. "I am not advising government, I am a non-executive director," Beckers clarifies. "HMRC is running its own busi- ness. I would never respond to allegations at all really." Forget the allegations, what about the facts – was the amount of tax Npower paid fair? "This is almost like the question: when did you stop beating up your dog? No-one can define what is fair; we all play to the rules." In promoting community energy, Beckers is on safer ground. The Department of Energy and Climate Change estimates up to 3GW of generation could come from com- munity projects in 2020. Beckers does not express a view on whether this is the right level of ambition, but he is clear ACP's £100 million pipeline is only the beginning: "We don't want to finish here." "Let's do the test drilling [for shale]. I don't believe that the outcome will be that we can become commercially viable with conventional gas, but I am happy to be proven wrong"