The business case for community renewables

THE world of renewable energy is in a state of suspended animation while awaiting further information about what the UK Government’s various announcements mean for them in terms of financial support.

While it seems unlikely that there is much future for onshore wind projects led by commercial developers, there still seem to be good prospects for community-led schemes on a relatively small scale. And so there should be.

It has taken quite a while for the message to filter through that producing low carbon energy is only one of the beneficial outcomes from community renewables.

So long as there are reasonable levels of support, they can also generate substantial funds which communities can spend on other priorities for which money is otherwise in short supply.

Of course, commercial projects can also fund local benefits and did so across Scotland last year to the tune of around £9million.

It all depends on the deal that the community has managed to cut at the time the project was looking for local supporters. But if that route is no longer available, then community-led projects are likely to attract greater interest.

In her statements about the future of subsidy for onshore wind, Amber Rudd, Secretary of State for Energy and Climate Change, has gone out of her way to be sympathetic towards the community renewables sector which is funded through Feed In Tariffs, rather than the Renewables Obligation, which Ms Rudd has cut short as far as onshore wind is concerned.

Interestingly, Community Energy Scotland was very supportive of Ms Rudd’s announcement.

“We share the Conservative Government’s aim for more community decision-making and increased numbers of community renewable energy projects,” said chief executive, Nicholas Gubbins.

He went on to point out that his organisation had been “instrumental in persuading DECC to amend their narrow definition of a community group to ensure that it included charities and their wholly-owned trading subsidiaries”.

So a very wide range of third sector organisations are entitled – maybe even obliged – to look afresh at renewable energy projects as part of their portfolio.

Perhaps because its energy focus is elsewhere, the North-east has been less active than some other parts of the country in realizing the potential of community energy projects.

This is in spite of the late Maitland Mackie having been one of the most authoritative advocates of why it made sense for communities to get involved in the renewables business.

However, there are successful examples – like the wind turbines at Udny and Fetterangus.

In the latter case, a single relatively small turbine was expected to generate £75,000 a year of surplus to be spent on other benefits for a small rural community, such as village hall improvements and children’s play facilities.

So listen out for what more Ms Rudd has to say on the subject of community renewables and the subsidy regime which will govern them.

It is an option which should be considered in every North-east community, both urban and rural, and Community Energy Scotland is there to give advice on how to go about it.