Disruption predicted for community energy sector

Scottish and Welsh government express concern.

The Scottish and Welsh governments have expressed fears for the future of community energy projects.

In a letter to the UK government, the Scottish Energy Minister and the Welsh Natural Resources Minister blamed the lack of discussion regarding support for renewable energy.

They warned that the lack of clarity surrounding an early closure of the Renewables Obligation has left many projects uncertain of the consequences.

The Renewables Obligation requires UK electricity suppliers to source a proportion of their electricity from eligible renewable sources. It was introduced in England, Wales, and Scotland in 2002, followed by Northern Ireland in 2005.

Small scale industry especially is disadvantaged by the lack of clarity, stresses the letter. Community groups lack the capital resource to sustain losses and are therefore more risk averse. Projects are thus expected to be hindered until they become commercially viable without subsidy.

Commercial developers on the other hand can support rapid development, which will allow greater imbalance in the renewable energy sector.

The disruption is expected to coincide with loss of local supply chains and problems with employment and salaries in the industry.

In addition to a meaningful dialogue about support for renewable energy, the letter called for more involvement from the devolved governments.

Energy Minister Fergus Ewing said: “Local ownership gives communities more control over their own energy and will help us tackle challenges like grid constraints and fuel poverty – while at the same time sparking economic revival.

“There are many communities who have invested significant amounts of money in renewables schemes and have now found the goal posts have been moved, putting crucial investment and jobs at risk.

“On the Isle of Lewis we have the largest community owned wind farm in the UK at 9MW. This will generate around £1M each year for the local community who will decide how to spend that money. However, potentially the future of other projects like this could be under threat as a result of the recent announcements by the UK government, and it will be tragic if these opportunities are lost to future communities.

“We will continue to discuss with the UK government ways that community schemes with shared ownership can be encouraged under all support schemes and in the meantime, the Scottish government will continue to support community energy schemes using the powers available to us.”

The Welsh Natural Resources Minister Carl Sargeant said: “Community energy is a key priority for both our governments and we feel very strongly that those communities who have invested heavily, in time, money and commitment, in a cleaner energy future, are deserving of this consideration.

“We both see that the future direction for energy is one of local generation and supply, based on renewable sources, and smart storage and local grid management, with significant local benefit. The current proposals will significantly damage the prospects for this future if the local ownership and benefits of projects are not considered within the support regime.

“Schemes like the Abergwyngregyn hydro scheme bring significant economic, social and environmental benefits to communities and the DECC proposals will make it much harder for communities to benefit from local renewable energy opportunities in the future.”

 

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