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5. CEW Vision-Dan


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CEW's vision by Dan McCallum, CEW Founding Director

CEW's vision by Dan McCallum, CEW Founding Director

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  • a) In England, business has published details of the renewable energy sector’s protocol on community benefits which includes funding pots related to wind development. The protocol specifies, for instance, a minimum £1,000 payment a year for every MW of installed wind power for the lifetime of a wind farm. This is a welcome start b) Planning policy currently does little to encourage community energy projects. All we can see is that it defines a category of development as community scale renewables, but provides prescriptive advice thereafter. Experience is that very few LPAs have developed improved policy and guidance on community projects because the national policy is too vague. c) Localism Act 2011 offer a number of opportunities for community energy projects to attract further finance and assets that will enable them to thrive resident-led plans for low carbon communities, setting a framework within the local planning system to promote and enable new community energy projects communities should be granted the opportunity to highlight underused land, space and assets that could be of use to the delivery of further community energy projects. Fiscal incentives: to become mainstream and form a significant part of a diversified national energy economy
  • local communities can see the connections between the sources of the energy they use and their patterns of consumption, attitudes are far more likely to change
  • Even greater potential when we look at experiences in Europe and what they have achieved
  • Being a low priority as there is no direct policy requirement for community energy finance can be difficult without a track record and the trading of shares is closely regulated. Myriad of Legal entities and complexity in understanding the best options Community may need specialist skills to develop a project and costs may be beyond the reaches of the community: “ Between the power house and the grid, a distance of a hundred yards, we ended up with five different organisations involved in delivery.” Contracts with a guaranteed purchase price can be a real threat to the development of local and community schemes.
  • Transcript

    • 1. Dan McCallum, Founding Director 8th June 2012
    • 2.  Who are we? Why is there a need? What do we hope to achieve?
    • 3.  To create a recognised sector for community energy and grow the number of communities actively involved in sustainable energy saving and renewable energy generation In achieving this we seek to deliver one sixth of the Welsh Governments target for CO2 emission reductions.
    • 4. To inspire communities to take actionTo empower them with the knowledge, resource, peer-to-peer supportTo provide financing models that move away from grant relianceTo influence policies at local, regional and national levelsTo be an independent and trusted voice for communities energy groups across Wales
    • 5.  Influence policy - locally and nationally to: o Recognise the contribution of community schemes to economic & social development o Be more ambitious in enabling community energy developments through Spatial plans o Enable preferential planning requirements and exemption from, for example, business rates o Actively implement the Localism Act 2011 o Ensure that all Local Development Plans have policy on renewables
    • 6.  Explore financial measures, including: o Influencing mechanisms, i.e. FiTs, RHI, Green Deal in favour of community renewables o Introduction of a Community Tariff o Incentivises for community projects to pursue new models of social and economic organisation. o Allowing communities to bid for ownership of their local grid o Not discriminating against equity and equity-like investment of risk capital in community-led energy schemesNB. Scottish Government loan scheme offering £23.5million for community renewable energy projects to cover ‘high-risk’ phase
    • 7.  Work with developers to: ◦ ensure that the wealth generated by energy development in Wales benefits communities in the long term ◦ explore new models – financial & legal - for partnerships with community groups ◦ collaborate with community groups through skills & training offers ◦ produce a ‘Community benefits’ protocol based on long- term objectives for community growth & resilience
    • 8.  Currently: o 62% of renewable generation from wind and solar o 25% from thermal renewable generation o 13% from hydro generation For onshore wind – 2GW: o 1770MW – SSA areas o 300MW - non SSA areas • combination of developments under 25MW, including community energy In Scotland, o 500MW – target for community & locally-owned renewable energy generation by 2020 Community energy provides 1% of renewable energy in UK
    • 9. Examples Technology Generating Cost WhyFintry Wind turbine - Rejected community to reduce energy demandRenewable owning one of benefit payment for and decrease fuel povertyEnergy 15 turbines ownership & acquired loan for one turbine costBath & West 1.5 MW of Vision to £5m - shares, bank To make community moreCommunity Solar PV, hydro increase to loans & others, resilient in the face ofEnergy and wind 25MW by including £1million increasing energy costs projects 2026 SSE loan for 100% debt financeLow Carbon 220kWp of 400MWh £1m - combination to make low carbon livingWest Oxford solar PVs; 6kW p.a. of loans, shares, & possible wind; 49kWe £830k prize money micro hydro from NESTA
    • 10. Examples Technology Generating Cost WhySustainable 225kW Wind 330MWh £225k - private to make Hockerton a moreHockerton Turbine p.a. investor & Share sustainable village offerBroDyfi 75kW Wind 165MWh £82k - Grants and to maximise local revenue Turbine p.a. share offer kept within the local economy 500kW Wind 870MWh EU Funding & £180 Turbine p.a. k - share offerTalybont 36kW Hydro 220-250M £92k - 100% grant to invest the income in energyEnergy turbine Wh p.a. funded from saving and sustainable living various sources projectsIsle of Gigha 3nos x 225kW 2.1 GWh £440k - mix of to reinvigorate the local Wind Turbine p.a. grants, loans and economy equity
    • 11.  generating income streams & using it for wider sustainability initiatives contribution to emissions savings & meeting energy efficiency targets self sufficiency for community organisations helping reduce a community’s dependence on fossil fuels reduction in energy costs and carbon emissions increased awareness of energy use & consumption patterns transferable skills creating local jobs tackling fuel poverty
    • 12.  Germany – ◦ renewables industry worth €6.8bn to municipalities in 2009, ◦ 2.2m solar power installations, 22,000 wind energy systems, 400,000 heat pumps and 4,500 biogas plants ◦ 20% of Germany’s entire electricity output, where communities alone generate around a quarter of this ◦ study has shown that attitudes toward local wind power was greater amongst residents for one locally owned than privately owned
    • 13.  Overcoming perception problems with public & community Onerous system of achieving consents and permits Securing Financing Lack of information specific to forming community groups, Lack of availability of local skills Grid connection Lack of long-term contracts No representation of the ‘sector’
    • 14.  Pick up information on joining our organisation Sign up for our regular CEW bulletins Find out more by contacting us via: o o o 029 20 192021 o @CommEnergyWales