Reduction in Community Energy support
As a first step towards narrowing the focus of this review, I
will assume the importance of the work done by community energy organizations
in the UK without seeking to prove it, though I do accept that the issue is
open to debate. We will look at the risks to the sector referred to earlier,
beginning with a quotation from Community Energy England’s 2017 report:
“Critical to the success of community renewables over
preceding years has been governmental support through early stage funding. It
was found that the projects included in this study utilised £1.9m in
development funding, stimulating investment of over £190m towards project
financing. Much of this early stage funding is no longer available in England
(e.g. the Urban Community Energy Fund (UCEF), limiting opportunities for new
projects, future growth and investment in the sector.
The removal of support mechanisms, including generation
subsidies and tax incentives for investors, has had a strong impact on project
viability. 31% of respondents reported limitations to their community aims and
ambitions, as projects have stalled or failed due to a lack of viability.
In the face of reduced support, deriving the value of
community energy at the local level was an important finding within the
research. Through successful community energy activities, communities were
shown to be reinvesting in the social, economic and environmental development
of their local areas as well as looking to further their low carbon goals
through a variety of innovative methods and projects.”
Two main supports, namely development funding and generation
subsidies, have been removed or substantially reduced. The question of how
these supports might be replaced or reintroduced is primarily one for discussion with government,
and will not be addressed here, though the implications of support withdrawal
will have to be considered in greater detail. The focus of this blog will be technological
developments which offer the prospect of making community energy projects
viable in the current difficult situation.
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