The Need for Charging Reform to Support Community Energy Projects

Abstract

Community-owned renewable energy projects provide environmental benefits, increase the deployment of decentralised generation, enhance public engagement and can also be designed to reduce fuel poverty and boost the local economy. The regulatory and market framework of the UK (and similarly in other countries) was created in the era of top-down planning and centralised generation, and have not changed to reflect the growth of decentralised and community owned generation. As such the market may have the unintended effect of penalising novel projects in some circumstances. Uniper has been responsible for the engineering and design of a community energy project planned for the UK, with support from the local council and community groups, and has reached the conclusion that whilst technically feasible, the scheme will struggle to form a sustainable business case in part due to the regulatory, tax and charging obligations placed onto the group.