Because it powers the modern industrial economy and is crucial for almost all human activities, energy is essential for economic and social well-being. Energy fuels factories, machinery, transport, hospitals, leisure, and much more. Coal, oil, and gas have been major sources of electricity production for decades, but burning them releases greenhouse gases, harming the climate, people, and the environment. Because of this, it is no surprise that the energy sector is responsible for more than three-quarters of the world's GHG emissions![1]
Fostering a stronger sense of community through local energy projects
Dr Edward Thomas Jones, Senior Lecturer in Economics at Bangor Business School, Bangor University.
Wales, like much of the rest of the world, is in the midst of an energy transition. Welsh electricity consumption fell by about 650 GWh, while renewable generation rose by over 130 GWh between 2021 and 2022.[2] The question isn't if this transition is occurring, but how we manage it for the best outcome for all Welsh people.
Community energy provides one solution. Community energy projects involve communities collaborating to create, implement, and reap the rewards of sustainable energy solutions. Such projects encompass energy supply (renewable energy installations and storage) and energy reduction (energy efficiency and demand management). Community energy projects may also involve community-led energy sales or distribution.
Through community energy projects, individuals can be involved in clean energy initiatives that go beyond their homes or businesses, resulting in benefits and opportunities for the wider community. Some benefits include jobs creation and boosting the local economy as well as cutting energy expenses and providing savings for participants in community energy projects.
being part of such projects enhances the experience of being part of a community, one that works together for the common good, building something positive and lasting for the future.
The concept of community energy projects isn't new, nor is it unique to Wales. Community energy initiatives play an important role in the energy transition in countries such as Germany, Denmark, and even the United States. In 1978, a community in Denmark constructed Tvindkraft, the first modern wind turbine. In Scotland, community wind farms have been instrumental in promoting local ownership of renewable energy resources. They not only provide clean energy but also generate revenue that can be reinvested into community projects, thereby enhancing local infrastructure and services. The Community Energy Wales report Community Energy Wales State of the Sector 2024 highlights progress made in Wales and makes a strong case for communities to be at the heart of the energy transition. The report makes recommendations on how to ensure communities are at the heart of the energy transition in Wales.
Community energy projects offer a new business model with financial and social benefits. Many factors drive community energy project involvement, including climate change mitigation, reducing community energy expenditure, and building stronger, more resilient communities. With rising interest in local wealth generation, community energy projects should feature in plans to cultivate shared local wealth, especially in economically disadvantaged communities.
Such projects foster a stronger sense of community by providing purpose and achievement, generating new local civic pride, and by connecting people who may have otherwise stayed anonymous neighbours. Above all, being part of such projects enhances the experience of being part of a community, one that works together for the common good, building something positive and lasting for the future.
[1] See www.iea.org/data-and-statistics/data-tools/greenhouse-gas-emissions-from-energy-data-explorer
[2] See www.regen.co.uk/publications/energy-generation-and-use-in-wales/