Electrify Europe 2018

Sessions Speakers Exhibitors Products Press Releases Floor Plan Buzz

The Need for Market Reform to Support Community Energy Projects (Room Lehar 4)

20 Jun 18
11:00 AM - 12:30 PM

Tracks: Track 4: Power Generation – Everything You Know is Wrong

There is growing interest from the general population, from industry and from governments in the rapid development and deployment of community-owned renewable energy projects. These 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. This paper will discuss the regulatory and market challenges which inhibit the deployment of community energy projects from a UK market perspective. 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 acts to penalise novel projects in some circumstances, whilst allowing others to exploit loopholes either intentionally or otherwise. This paper uses an example of a community energy project planned for the UK and explains how the otherwise real-world technologies and business case are currently being prevented from realisation by the implications of regulatory obligations and governmental decisions. It then discusses a method for adapting the market framework in such a manner as to incentivise legitimate and beneficial projects whilst still maintaining appropriate revenues required to fund distribution network maintenance and development.