The number of successful community energy projects has decreased as the sector faces increasing risk and the impact of subsidy cuts, a new report has warned.
Community Energy England’s 2018 State of the Sector report shows last year there were 30 fewer community energy projects installed or acquired and total new generation capacity also fell by 31 per cent.
According to the annual report, which is published today (23 June), just three new projects – Drayton Manor Solar Farm, Newton Downs Solar Farm and Mean Moor Wind Farm – accounted for more than three quarters (79 per cent) of all the new community generation capacity added last year.
And nearly 30 per cent of community energy organisations have a stalled or failed project due to either poor margins, subsidy cuts or a lack of support.
The report also reveals that communities across England, Wales and Northern Ireland now own 168MW of electrical generation capacity and generated 202GWh in 2017, which is enough to meet the annual energy needs of 65,000.
And community energy also produced £1.1m of economic, social and environmental benefits to around the UK.
“Community energy has faced many changes to policy, regulation and finance over the last couple of years, and the model that delivered an incredible amount of community energy projects is now in question,” said Community Energy England chief executive, Emma Bridge.
“The findings of this report reflect those changes, with reductions in the number of new projects being developed and new community organisations being formed.
“However, there are also many positive messages,” added Bridge. “2017 saw an increase in large-scale generation, private assets being brought into community ownership, greater collaboration and innovation in finance, new technologies and business models.
“Community energy continues to provide far more than the generation of renewable energy, with organisations working hard to deliver environmental, social and economic benefits for their local areas.”