Community Renewable Energy in the UK




The impact of policy changes: The opportunities of Community Renewable Energy projects in the UK and the barriers they face


Pegah Mirzania, Andy Ford, Deborah Andrews, George Ofori, Graeme Maidment

Energy Policy 129 (2019) 1282–1296

The role of Community Renewable Energy (CRE) is reviewed in the context of the energy trilemma (the problem of delivering energy security, equity, and environmental sustainability), changing policy, and the UK’s aging infrastructure. The paper is based on information gathered from community energy groups during 2016 and 2017. It describes the “huge problems” that arose following changes in government policy, and concludes with recommendations on future policy and on business models.

Key points in the early development of government policy on CRE are reviewed, the growth of the sector is compared with that achieved in other European countries, and a series of later policy changes are listed which were detrimental to the prospects of CRE.

The paper discusses ways in which CRE groups are organized, their legal structures, business models, revenue and finance, activities and resources, and their growth and decline. Particular attention is given to the impact of post 2015 policy changes, the responses of CRE groups, and the reasons why groups succeed or fail. Business model innovation for future projects is discussed.

The authors conclude that despite the damage done to CRE groups by policy uncertainty, UK government could still help them to survive through assisting networking and partnering activities, which could help reduce investment risk and overcome market barriers, and by offering training related to business models and partnerships with intermediary organizations.
The business model seen as most attractive at present is that of renewable generation combined with battery storage, though a high level of technical and business experience is needed for success.

The paper is paywall protected, but some of the more recent open access papers cited are listed below.

10:10, 2016. Community energy The way forward.
Available at: https://1010/uk.org/ articles/community-energy-way-forward

Bidmon,C., Knab,S., 2014. The Three Roles of Business Models for Socio-technical Transitions. In: TheXXVISPIMconference, Available at: https://www.researchgate. net/publication/263065156_The_Three_Roles_of_Business_Models_for_SocioTechnical_Transitions.

Bolton, R., Hannon, M., 2016. Governing sustainability transitions through business model.
Res. Policy Available from: https://www.sciencedirect.com/science/article/ pii/S00487333163007745.

Bridge,E., Fenna, G., 2015. Community Energy: generating more than renewable energy for community energy England. Available at: https://communityenergyengland.org/ files/document/40/1494515981_CEE-Survey-2015-Summary.pdf.

Centre for Sustainable Energy, 2014. Urban community energy fund (UCEF), centre for sustainable energy. 
Available at: https://www.cse.org.uk/projects/view/1249, 

DECC, 2014. Community energy in the UK: Part2: finalreport, decc.
Available at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/ 274571/Community_Energy_in_the_UK_part_2_.pdf.

DECC, 2014. Community energy Strategy: full report.
Available at: https://www.gov.uk/ government/uploads/system/uploads/attachment_data/file/275163/ 20140126Community_Energy_Strategy.pdf.

DECC, 2015. Changes to renewables subsidies. Available at: https://www.gov.uk/ government/news/changes-to-renewables-subsidies.

DECC, 2015. Community energy Strategy update.
Available at: https://www.gov.uk/ government/uploads/system/uploads/attachment_data/file/275163/ 20140126Community_Energy_Strategy.pdf.

DECC, 2015. FIT contract for difference standard terms and conditions. Available at: https://lowcarboncontracts.uk/sites/default/files/FINAL_CFD_Standard_Terms_and_ Conditions_V2-_13_March_2017__0.pdf.

DECC, 2015. Green Deal Finance Company Funding to End. GOV.UKPressreleasehttps:// doi.org/10.1111/j.1523-1739.2008.01128.x.

DECC, 2015. Review of the feed-in tariffs.
Available at: https://www.gov.uk/ government/uploads/system/uploads/attachment_data/file/487300/FITs_Review_ Govt__response_Final.pdf.

Environmental Audit Committee, 2015. The future of the green Investment Bank speeches-.

Haggett, C., et al., 2014. Supporting community investment in commercial renewable energy schemes final report, climatexchange report.
Available at: https://www.climatexchange.org. uk/media/1548/supporting_community_investment_in_commerical_energy_schemes. pdf.

Hall, D.S., Roelich, D.K., 2015.
Local electricity Supply: opportunities, archetypes and outcomes.
Available at: https://research.ncl.ac.uk/ibuild/outputs/local_electricity_ supply_report_WEB.pdf.

Harnmeijer, A.L., 2016.
A short history of community renewable energy in the United Kingdom. Available at: https://www.researchgate.net/publication/304571086_A_ Short_History_of_Community_Renewable_Energy_in_the_United_Kingdom_ characterisation_and_development_from_1870-2015.

Nolden, C., 2015.
Performance and impact of the feed-inTariff scheme: review of evidence. Available at: https://assets.publishing.service.gov.uk/government/uploads/ system/uploads/attachment_data/file/456181/FIT_Evidence_Review.pdf.

Ofgem, 2016. Benefits for communities and schools_Ofgem.
Available at: https://www. ofgem.gov.uk/environmental-programmes/fit/applicants/benefits-communities-andschools

RegenSW, Scown,S., 2016. Local supply: options for selling your energy locally (June).
Available at: https://www.regensw.co.uk/7283018298372873/wp-content/ uploads/2015/06/Regen-White.

Revenue, H.M., Customs, 2015. Income tax and capital gains tax: changes to venture capital schemes for companies and community organisations benefiting from energy subsidies. Available at: https://assets.publishing.service.gov.uk/government/ uploads/system/uploads/attachment_data/file/385147/Venture_Capital_Schemes. pdf.






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