Government’s community energy fund ‘falls short’  

A £10 million government fund for local renewable energy projects “falls short” of providing adequate support for communities, an industry boss has suggested.

The government’s new Community Energy Fund is an expanded version of the former Rural Community Energy Fund (RCEF) and will now include investment for urban areas.

With applications set to open in early Autumn, the government said the fund will help to “kickstart projects including small-scale wind farms and rooftop solar partnerships, as well as battery storage, rural heat networks, electric vehicle charging points, and fuel poverty alleviation schemes.”

While the move has been cautiously welcomed by some, others have raised concerns about the amount of funding being allocated to the new scheme.

Emma Bridge, chief executive of trade body Community Energy England, said: ”We welcome the launch of this much needed fund and the extension of support to include urban areas, which has been a key policy ask for CEE.”

However, she added: “While this announcement is a positive step, we believe that the current funding allocation falls short of adequately supporting local communities.

“Community energy brings so many more benefits. It is tackling the cost of living crisis, the climate crisis, while reinvigorating communities. It harnesses the passion, expertise and capital of the local community and returns all its profits to benefit that community. Community energy is essential to achieving net zero.

“To unlock its full potential, and drive the growth of the sector right across the country,  we urge the government to continue to work with the sector to overcome other barriers, to progress local supply and shared ownership of the fast-growing renewable energy sector.”

Raising similar concerns was Mark Sommerfeld, deputy director of policy at the Association for Renewable Energy and Clean Technology (REA). He argued that there are “significant barriers” to community energy which grant funding will not resolve.

When asked by Utility Week whether £10 million was a significant amount for local projects, he said “no, not really” and pointed to the fact that the previous fund was £15 million.

Sommerfeld added: “It is welcome that government is finally taking steps to support community energy projects, and new funding to help kick start such projects is needed… However, grant funding will not address many of the significant barriers to local community projects, which includes long delays in planning decisions and often an inability to connect to the local electricity grid, due to capacity constraints.

“To really kick start community energy projects in the UK, as well as the rapid deployment of renewables at all scales, it is these wider barriers that must be addressed.”

Also commenting on the new funding was Renewable UK’s head of onshore wind, James Robottom, who expressed concerns about current policy relating to renewables.

He said: “If this scheme is to reach its full potential, the Prime Minister must do as he promised in December and end the de-facto ban on onshore wind, or the government’s ambition for a new wave of small-scale community wind farms in England will be impossible.

“Those communities need ministers to reform the planning system so that onshore wind is treated like any other type of infrastructure, allowing projects to go ahead in areas where they have community support.”

The Department for Energy Security and Net Zero said as with the previous fund, the new scheme will be delivered through Local Net Zero Hubs, which support local authorities to develop net zero projects and attract commercial investment.

Andrew Bowie, minister for nuclear and networks, said: “Local communities are at the heart of our plans to boost our energy security and grow the economy. The Community Energy Fund for England will empower communities to do just that.

“With it, they’ll be able to drive forward innovative energy projects that will have a lasting positive impact, bringing costs down, building stronger communities, and securing clean energy for generations to come.

“Importantly, these energy projects could expand beyond local areas by attracting further investment from the private sector, in turn inspiring other communities to power their area with energy from England.”