Term Definition
£m Millions of pounds sterling.
At Cost Investment price based on the actual capital expenditure incurred to build the Project with no premium added.
Capacity factor The Project’s average energy output expressed as a % of maximum possible output.

 
CfD Contract for Difference – UK government’s scheme for supporting low carbon electricity generation. Renewable generators can apply for a CfD through an auction process and, where successful, obtain a contract through which the generator receives an inflation indexed strike price on a £/MWh basis for the electricity that the Project exports over the 20-year period of the contract.
COD Commercial Operations Date – when construction is complete and the Project begins exporting/selling electricity.
Community In this article, the legal entity (for example, a community benefit society or company) that invests in the Project on behalf of a community group(s).
Debt Service Combined repayment of the interest and principal capital of a loan.
Discount rate Rate of return used to determine the Net Present Value of future cashflows.
Fair Value Investment Price reflecting what a rational third‑party investor might pay for the same stake, given expected future cash flows and risk (often estimated using an NPV/discounted cash flow valuation).

 
FID Final Investment Decision – the point at which a developer commits to the construction and funding of a Project.
Gearing The proportion of a Project funded by debt verses equity. For example, a Project which is funded by 70% debt, 30% equity, would be described as having gearing at 70% or 70% gearing.
Investment Price Initial amount to be invested by the Community to acquire a stake into the project.
Joint Venture A shared ownership structure where the Community acquires an equity interest (shares) in the company that owns the Project.
Market Value Alternative terminology for fair value.
MW Megawatt – a unit of electrical power capacity.
MWh Megawatt Hour – a unit of energy (power over time). 1 MWh is 1MW delivered for 1 hour.
Net Profit In this article, a simplified measure of cash available to shareholders after operating costs, taxes, and debt service (not an accounting definition of Net Profit).
NPV Net Present Value – the value today of forecast future cash flows, discounted back to the valuation date using a chosen discount rate, minus any upfront investment required. A positive NPV means the forecast returns exceed the Discount Rate; a negative NPV means they do not.

 
Project In this article, the illustrative 75 MW onshore wind project.
Shared Revenue A structure where the Community receives an agreed share of project revenues or profits under a contract, without owning shares in the Project company.