Let's face it, in the UK, we're largely passive consumers of energy, subject to the vagaries of wholesale gas prices and large profit-making providers. But this state of affairs doesn't necessarily have to endure or be endured. Is it not possible to conceive of a model where the relationship between people and energy is reconstituted, so that communities own, control and benefit from their own renewable energy projects? We at the Co-operative think it is, and the bar set by other European countries, such as Germany and Denmark, should be the goal for a revolution in energy ownership in this country.
The Co-operative conservatively estimates the UK potential for community-owned renewable energy to be a significant 3.5 gigawatts, the equivalent of three or four conventional power stations. Such potential could undoubtedly help the UK meet its stated energy and climate change goals (for example, reduce greenhouse gas emissions, improve energy security and competitiveness), but the benefits of community energy extend beyond this. It also offers significant local economic and social benefits, such as improved energy awareness and encouraging changes in individual consumption. Revitalised communities and increased public acceptance of renewable energy infrastructure are just some of the prizes of a community energy revolution.
The Co-operative is putting significant resources into championing community energy. Last week we announced the winners of our Community Energy Challenge, a competition for ambitious community groups to receive support to set up and run their own renewable energy projects. The seven winners include an innovative partnership between a North Wales community and The National Trust to develop a hydro-electric scheme, a three-turbine community wind farm on the Isle of Bute, Scotland, and a groundbreaking scheme in Buckinghamshire to site combined PV solar panels and noise reduction barriers along the M40. If successful, it is hoped the M40 scheme, a UK first, can be replicated on other east–west aligned stretches of motorway around the country.
The intended result is a powerful set of replicable community energy schemes that demonstrate a range of technologies and the benefits of community ownership.
This follows our lead role in forming a Community Energy Coalition earlier this year with civil society organisations that represent more than 12 million members. This influential group includes The National Trust, the Women's Institute, the Campaign to Protect Rural England and the Church of England. Together, we launched a joint vision for community energy, calling for a dramatic increase of the sector by 2020, and we are continuing to work together in this area.
The Co-operative Bank has ringfenced £1bn to finance renewable energy and energy efficiency as part of The Co-operative's Ethical Operating Plan: £100m of this has been set aside to finance community energy projects. In May we announced we are financing the UK's largest community wind farm on the island of South Uist, Scotland. This 100% community-owned scheme will generate more than £20m of income for the community over its lifetime, all of which will be re-invested into the local economy.
The Co-operative has also made available support worth £1m for community energy via The Co-operative Enterprise Hub. This includes £250,000 to cover the costs of an expert panel to provide free advice on issues such as legal and insurance (costs that community groups often pay over the odds for), and a revolving fund of £400,000 to underwrite community share offers when the projects are ready to be built (significantly reducing the initial risk associated with investing in community share offers).
Community energy is an inspiring but tiny share of the energy-generation market. If it is to move to the mainstream and achieve its full potential, it will need government assistance. This is because, at present, it does not fit the system, with community energy schemes often subject to the same regulation and policy measures designed for much larger, commercial scale generators.
In policy terms, the UK also lacks a comprehensive and integrated framework of support for community energy. We are, therefore, working with Co-operatives UK and the Community Energy Coalition to produce a manifesto for community energy, which will include policy recommendations to help bring about our shared vision of a dramatic increase in community energy generation. Among other recommendations, it will include calls to reduce the inappropriate administrative burden on community schemes, introduce a favourable planning regime, and develop a supportive financial framework including a community energy feed-in tariff.
With the Green Deal, Electricity Market Reform, the Renewable Heat Incentive, Feed-in Tariffs and the Green Investment Bank all on the political agenda, there is a wealth of opportunity for the government to support community energy. We hope the government takes it; we need a clean energy revolution in the UK that puts communities at its heart.
Colin Baines is campaign manager at The Co-operative
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