A FURNESS renewable energy co-operative says it is proving it can make good commercial as well as environmental sense to harness wind power.

The first co-operative of its kind in the country, Baywind is now poised to expand after confounding its critics by proving to be a successful venture.

Baywind already owns the five wind turbines on Harlock Hill, at Pennington, near Ulverston, and hopes to add an extra six turbines on the site in the near future.

Work has already started on an environmental impact assessment into the proposal.

The co-operative, which also owns one turbine at the Haverigg wind farm, also plans to take a stake in National Wind Power's eight turbine wind farm project at Wharrels Hill, near Cockermouth, which won planning consent on appeal earlier this year.

And it also has other irons in the fire further afield, with planned projects at different stages in Scotland and the south of England.

Baywind is also in talks with the developers of a proposed major offshore wind farm at Walney.

With the government committed to producing 10 per cent of the nation's power demands from renewable energy sources by 2010, Baywind's army of shareholders are convinced the future is green.

More than 1,300 shareholders - 43 per cent of them from Cumbria and north Lancashire - invested an average of £1,000 in the co-operative.

Those who took advantage of the government's enterprise investment scheme - which returns 20 per cent of the initial stake if investors hold on to shares for at least three years - have seen average returns of more than seven per cent since 1998.

That means someone with a £1,000 stake has been paid at least £70 a year in dividends, paid for out of the profits from selling energy to power companies.

And when the turbines come to the end of their working lives after 20 years, investors are repaid their original investment.

Meanwhile, the remotely-controlled turbines are generating so-called clean electricity to meet the average needs of 1,300 households.

Board member Richard Scott, who lives close by at Loppergarth, says the idea of a

wind energy co-operative sparked the public imagination and Baywind now has a list of more than 2,000 would-be investors.

" People started this up for environmental reasons rather than financial ones, but we have found we make a better return than building societies," he said.

Indeed, Baywind's success has attracted interest from far and wide.

Company secretary Annette Heslop, who is employed full-time by the co-operative, fields calls from people all over the country keen to learn about how Baywind was set up.

There is also a website (www.baywind.co.uk) to spread the word about co-operatives.

Mrs Heslop said winning local support was crucial to the success of Baywind.

It ploughs half a per cent of its turnover - worth £2,000 last year - back into the Pennington community by providing low energy light bulbs and supporting conservation projects.

Harlock Hill also provides work for a Barrow firm which has a maintenance contract.

While wind farm projects often generate strong opposition from people claiming they are a blot on the landscape, Baywind believes there is a clear demand for renewable energy from both government and potential investors.