Re:ImagineKernow is trying to support local energy production. The main challenge is linking into the national grid as a discrete local supplier. Activity on this is ongoing.
Community Energy Schemes
Community Interest Company (CIC)
Community Energy Schemes
- There is growing interest in community energy schemes and the energy sector is being structured in a way to make them possible.
- Over 200 community energy schemes have been established in England with a generating capacity of around 180MW (sufficient for around 130,000 homes).
- Around £190m of investment has been raised to support community energy schemes in England to date. There are a number of speciality investors and Triodos Bank and the CoOp Bank are involved.
- A good example of a community owned solar project is Westmill Solar Co-operative (www.westmillsolar.coop) which is located near Swindon. This uses relatively old technology now but is still relevant.
- A community energy scheme would have to connect to the WPD local grid. This can be difficult and can create limitations on export capacity. However, we can probably exert pressure on WPD to be reasonable if we can show that there is a balance in the volume of power generated with the local demand.
- Because power would be exported to the local grid and then distributed into people’s homes there would be a requirement for a company with an Electricity Supply Licence to facilitate the process (this is called ‘sleeving’).
- One of the risks which will have to be managed are the grid charges associated with Use of System. This is a complicated area and some of the charges levied are dependent on the system use at times of peak demand. This can make power pricing for customers difficult to fix without including a high risk premium. However, there are ways of dealing with this.
Community Interest Company (CIC)
- This is a type of non-charitable limited company which can be established for social enterprise and primarily for the benefit of the community.
- The advantages and disadvantages of CIC’s are very well explained in a short article which can be found by copying the link below into web browser;
- If a community energy scheme starts to become a reality for St Neot the legal structure will have to be considered carefully to make sure it is optimized. A CIC may or may not be the best option.