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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