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Community Energy Wales Welcomes New Legislation
Community Energy Wales has welcomed the publication of the UK government’s new Energy Independence Bill.
Measures in the bill include mandation of community benefits for onshore wind and solar. It also increases the minimum for shared ownership (between communities and private developers) from 5% to 20% community share, provision that was included in the 2015 Infrastructure Act. It also requires large energy suppliers to engage with and offer prescribed services to community energy organisations, which are defined. This has the potential to create the conditions the supply of local power.
Community energy sector representatives Leanne Wood and Ben Ferguson said
“Local energy trading has the potential to unlock the capability for more communities to create viable energy businesses. Local energy trading would enable people to form what we call energy communities. This is where people in an area band together to generate as much energy as possible for local consumption. Energy communities can conserve energy and reduce prices for consumers, improve community resilience and help with grid balancing.
The energy transition is a once-in-a-generation opportunity to democratise a vital part of the foundational economy, distribute ownership much more widely and keep more economic value circulating within local communities.
But there is a systems argument too. A more decentralised, community-led energy system has the potential to change how we use energy: matching local generation and demand, enabling flexibility, storage and smarter consumption, reducing pressure on networks and potentially avoiding some of the costs which otherwise end up socialised through bills and standing charges.
We welcome the measures outlined in this bill to mandate community benefits and to increase the minimum share for communities with projects where ownership is shared with private developers. The rate of £5,000 per megawatt has been an industry agreed rate set in 2012. We are of the view that the rate should at least see inflationary increases, if not more. We especially welcome the provisions that could help us develop energy communities, similar to what can be seen in other countries within Europe.
Community Energy Wales will work with our partners and supportive MPs on the detail behind this bill as it follows the process to become law.”