Community Renewables Innovation Lab: Energy Transition Platform policy briefing

Abstract

Community renewables are installations of renewable electricity such as solar panels or wind turbines, which are owned by, or have significant benefits for, residents and local organisations. Such schemes not only help regional governments meet their carbon reduction targets, but they also engage citizens in the wider clean energy transition. Projects are considered as ‘community’ schemes if residents are highly involved in decision-making, or if there are local benefits such as energy access, job creation, regeneration and education. This policy briefing highlights the opportunities and challenges of developing community renewable schemes in four different states and regions in Canada, Spain, the UK and the US. The research is part of the Climate Group's Energy Transition Platform through which states and regions work together to overcome barriers to the adoption of low carbon energy policies and technologies. For schemes owned by community co-operatives, a significant challenge is raising sufficient capital. Without existing financial capacity in the local community, innovative approaches such as crowd funding are needed. While up-front and ongoing investment subsidies are beneficial, such financial support is often time limited and may not be sustainable long term. Hybrid models of ownership, such as partnerships between commercial developers, community organisations and local authorities, may be the most plausible arrangement. Capturing wider socio-economic benefits for local communities is also a challenge for commercially-led schemes, but may be more possible with hybrid ownership models. And while regional and national legislation can help – it can also hinder uptake of community renewables. One further challenge in three of the four states/regions considered is how to develop a smart grid infrastructure that can integrate large volumes of distributed generation.