With the right support, community energy schemes could provide up to 5.3GW of renewable generation capacity by 2030, according to a new report commissioned by SP Energy Networks.
The number of community energy groups could rise from around 350 today to 4,000. The boom would create more than 8,000 jobs and boost local economies by £1.8 billion.
However, the report produced by WPI Economics also forecasts that in the absence of changes generation capacity, which currently stands at more than 250MW, would rise to just 420MW by the end of the current decade. It notes that growth has largely tailed off since the closure of the Feed-in Tariff scheme to new applicants.
It urges the government to:
- Create new, perhaps regionally allocated, funding streams specifically for community energy schemes
- Working with Ofgem, formulate a new approach to local energy planning, with community energy at the core
- Task Ofgem with reviewing regulatory barriers and improve institutional support at all levels of government
- Establish a national community energy strategy and create a community energy fund
Alongside the report, SP Energy Networks has also launched a new educational toolkit to help new schemes get off the ground.
Chief executive Frank Mitchell said: “This report shows just how much potential there is within our communities in our drive to a zero-carbon future, lowering emissions with the additional benefit of driving up skills and jobs across the UK.
“It also shows what might be possible by highlighting the innovative efforts of communities – notably in Scotland and Wales– where sustained government support and a strong backing from third sector organisations has enabled local energy to lead the way, not only in a UK context but internationally as well.”
“But we’ve only just scratched the surface. Communities across the UK increasingly want to generate their own, low carbon power. As the provider of the energy networks that make this possible, SP Energy Networks is committed to doing more. But we need government and regulators to allow us to do so.
“It is time for communities to be given a stronger voice in how their areas reach net zero. And as this report makes clear, we need new funding streams and reduced regulation in licensing planning to meet this vision.”
Source: Future of Community Energy, WPI Economics and SP Energy Networks