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Dan McCallum, Founding Director
        8th June 2012
   Who are we?

   Why is there a need?

   What do we hope to achieve?




                           www.communityenergywales.org.uk
   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 Government's target for CO2 emission
    reductions.
                             www.communityenergywales.org.uk
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


                         www.communityenergywales.org.uk
   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
                                   www.communityenergywales.org.uk
 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 schemes

NB. Scottish Government loan scheme offering £23.5million for
  community renewable energy projects to cover ‘high-risk’ phase

                                         www.communityenergywales.org.uk
   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


                                 www.communityenergywales.org.uk
   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

                                     www.communityenergywales.org.uk
Examples    Technology      Generating            Cost                            Why
Fintry       Wind turbine -                 Rejected community           to reduce energy demand
Renewable    owning one of                  benefit payment for          and decrease fuel poverty
Energy       15 turbines                    ownership &
                                            acquired loan for
                                            one turbine cost
Bath & West 1.5 MW of         Vision to     £5m - shares, bank           To make community more
Community Solar PV, hydro     increase to   loans & others,              resilient in the face of
Energy      and wind          25MW by       including £1million          increasing energy costs
            projects          2026          SSE loan for 100%
                                            debt finance

Low Carbon 220kWp of       400MWh           £1m - combination            to make low carbon living
West Oxford solar PVs; 6kW p.a.             of loans, shares, &          possible
            wind; 49kWe                     £830k prize money
            micro hydro                     from NESTA

                                               www.communityenergywales.org.uk
Examples      Technology   Generating          Cost                           Why
Sustainable   225kW Wind    330MWh       £225k - private           to make Hockerton a more
Hockerton     Turbine       p.a.         investor & Share          sustainable village
                                         offer

BroDyfi       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 offer

Talybont      36kW Hydro    220-250M     £92k - 100% grant         to invest the income in energy
Energy        turbine       Wh p.a.      funded from               saving and sustainable living
                                         various sources           projects
Isle of Gigha 3nos x 225kW 2.1 GWh       £440k - mix of            to reinvigorate the local
              Wind Turbine p.a.          grants, loans and         economy
                                         equity
                                             www.communityenergywales.org.uk
 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
                               www.communityenergywales.org.uk
   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


                                www.communityenergywales.org.uk
   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’




                                       www.communityenergywales.org.uk
   Pick up information on joining our organisation

   Sign up for our regular CEW bulletins

   Find out more by contacting us via:
     o www.communityenergywales.org.uk

     o rita@communityenergywales.org.uk

     o 029 20 192021

     o @CommEnergyWales


                                www.communityenergywales.org.uk

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5. CEW Vision-Dan

  • 1. Dan McCallum, Founding Director 8th June 2012
  • 2. Who are we?  Why is there a need?  What do we hope to achieve? www.communityenergywales.org.uk
  • 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 Government's target for CO2 emission reductions. www.communityenergywales.org.uk
  • 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 www.communityenergywales.org.uk
  • 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 www.communityenergywales.org.uk
  • 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 schemes NB. Scottish Government loan scheme offering £23.5million for community renewable energy projects to cover ‘high-risk’ phase www.communityenergywales.org.uk
  • 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 www.communityenergywales.org.uk
  • 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 www.communityenergywales.org.uk
  • 9. Examples Technology Generating Cost Why Fintry Wind turbine - Rejected community to reduce energy demand Renewable owning one of benefit payment for and decrease fuel poverty Energy 15 turbines ownership & acquired loan for one turbine cost Bath & West 1.5 MW of Vision to £5m - shares, bank To make community more Community Solar PV, hydro increase to loans & others, resilient in the face of Energy and wind 25MW by including £1million increasing energy costs projects 2026 SSE loan for 100% debt finance Low Carbon 220kWp of 400MWh £1m - combination to make low carbon living West Oxford solar PVs; 6kW p.a. of loans, shares, & possible wind; 49kWe £830k prize money micro hydro from NESTA www.communityenergywales.org.uk
  • 10. Examples Technology Generating Cost Why Sustainable 225kW Wind 330MWh £225k - private to make Hockerton a more Hockerton Turbine p.a. investor & Share sustainable village offer BroDyfi 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 offer Talybont 36kW Hydro 220-250M £92k - 100% grant to invest the income in energy Energy turbine Wh p.a. funded from saving and sustainable living various sources projects Isle of Gigha 3nos x 225kW 2.1 GWh £440k - mix of to reinvigorate the local Wind Turbine p.a. grants, loans and economy equity www.communityenergywales.org.uk
  • 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 www.communityenergywales.org.uk
  • 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 www.communityenergywales.org.uk
  • 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’ www.communityenergywales.org.uk
  • 14. Pick up information on joining our organisation  Sign up for our regular CEW bulletins  Find out more by contacting us via: o www.communityenergywales.org.uk o rita@communityenergywales.org.uk o 029 20 192021 o @CommEnergyWales www.communityenergywales.org.uk

Editor's Notes

  1. 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
  2. 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
  3. Even greater potential when we look at experiences in Europe and what they have achieved
  4. 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.