National and community-based groups — as well as Greenpeace and the southeast's electricity grid operator — have demanded the UK government act on recommendations by the Environmental Audit Committee on removing barriers to community energy in order to meet the UK’s net-zero goals.
A total of 74 signatories expressed their support for the committees' recommendations in an open letter dated 29 May which was sent to the secretaries of the Department of Business, Energy and Industrial Strategy and Ministry of Housing, Communities and Local Government; the Chancellor of the Exchequer; and the Ofgem Chief Executive.
The Committee, which set out to investigate tech solutions to prevent climate change, found the UK’s community energy sector had stopped growing in the UK since 2017, unlike in countries like Germany, Denmark and the Netherlands.
Roadblocks for the sector
The Environmental Audit Committee also recommended the removal of regulatory barriers to local energy supply. These included changes to the subsidies available over the past five years that hurt the financial viability of community energy projects, particularly small rooftop solar and urban projects.
The changes the Committee said had dimmed prospects for new community energy projects included the closure of Feed-in Tariff applications in 2019, the end of both the Urban Community Energy Fund in 2016 and Non-Domestic RHI at the end of March this year, and the removal of community energy from Social Investment Tax Relief in 2017.
In addition, the Committee said, grid connection costs and access charges were sometimes too high for small groups.
It suggested specific types of financial aid for community energy, especially for commercial onshore renewables, such as a Community Smart Export Guarantee with a long-term floor price; an Urban Community Energy Fund; a replacement for the Renewable Heat Incentive for community energy; and funding for planning and collaborations in community energy.
Net-zero potential
In April the UK government followed up on a 2019 pledge to reach net-zero greenhouse gas emissions by 2050, passing laws to enable it to reach the goal. It will detail how it will get there this year in its Net Zero Strategy, set to be published before Paris Agreement parties at the COP26 UN climate summit in November.
The signatories backed the Committee's recommendation to recognise community energy in the Net Zero Strategy and pass practical support measures to harness community energy. "These must be included in the Net Zero Review and funded in the Comprehensive Spending Review this autumn," they said.
"We look forward to seeing community energy fulfil its potential, adding value to communities and empowering them to meet their own needs, and ensuring no one and no community is left behind in a just energy transition," the signatories said.
One of the letter's signatories was Leicestershire County-based Harborough Energy, the co-operative that operates a 170 kW solar PV in the Harborough area.
Some of the groups in the May 36 open letter. Credit: Harborough Energy
Members of the public are also supportive of more community energy. Subsidies should be provided for groups such as co-ops to provide local energy services which are tailored, non-profit and trustworthy, according to a September report on net-zero strategy published by a citizen’s group organized by MPs in 2019, The Climate Assembly UK.
The report noted that community energy is vital in "realising a just transition and harnessing local opportunities and synergies that otherwise would not happen."
