Unlocking Community Energy at Scale
CSE recently contributed to the Energy Security and Net Zero Committee’s inquiry on unlocking community energy at scale. This inquiry takes place within the context of the UK government’s ambition to decarbonise the electricity system by 2030, where community energy is expected to play a pivotal role. The committee is examining the policy, market, and regulatory reforms needed to support the growth of community energy.
At CSE, we believe community energy holds immense potential to build public support for renewable energy, accelerate its adoption, and contribute meaningfully to the UK’s net zero goals. These initiatives empower local communities, foster resilience, and reduce dependence on external energy sources.
Essential policy reforms
For community energy initiatives to flourish, significant reforms are needed across several key areas:
Government support and coordination
The government must develop an accessible, nationwide approach to scaling community energy through a comprehensive support programme that:
- Facilitates partnerships between communities, the private sector, and local authorities.
- Provides capacity support for local community organisations to develop new initiatives, beyond just capital grants for infrastructure.
- Expands existing grant programmes like the Community Energy Fund, incorporating lessons from past initiatives.
- Actively supports project development in all areas, particularly in disadvantaged regions with historically fewer projects.
Regulatory and market reform
A thorough review of the regulatory environment is needed to address current restrictions preventing community energy organisations from developing innovative business models, including:
- Peer-to-peer trading.
- Aggregated flexibility services at community scale.
- Microgrids.
Grid Connection and clean power integration
The government’s 2030 Clean Power Plan commitments should explicitly recognise the social and community benefits of these schemes, particularly regarding:
- Grid connections reform.
- Connection criteria that consider the added social and community value when allocating capacity.
- Implementation of a community energy export guarantee for smaller generation schemes.
Planning policy enhancement
National and local planning policies require updates in order to:
- Define and recognise community energy proposals.
- Consider local social and economic benefits in planning decisions.
- Provide guidance for neighbourhood planning groups.
- Require local authorities to include supportive policies in Local Plans.
- Ensure community energy groups are key stakeholders in Local Area Energy Plans.
At CSE, we recognise that transforming our energy system requires more than just technological solutions. Through these recommended reforms, we can create an energy landscape that truly serves local communities while advancing our climate action goals. Our decades of experience working with communities across the UK have shown that when local people are empowered to shape their local energy environment of their own area, the benefits extend far beyond renewable generation to create lasting positive change in their communities.
Unlocking community energy at scale
Read CSE’s full response to the Energy Security and Net Zero Committee