Community Energy

Awel Co-op: Mynydd y Gwrhyd Wind Farm, Neath Port Talbot: a community 2 turbine 4.7 MW wind farm generating low carbon renewable electricity, profits from which are used to tackle climate change by delivering sustainable community projects in the local area. A community referendum demonstrated that a clear majority of people supported the idea of a community wind farm.

500kW wind turbine, Salem, Llandeilo: generating a sustainable income for the use of local inhabitants. A local group managed to secure the ownership, benefits and opportunities for the local community, preventing the sale of developmental rights to a private company. The community benefit fund has financed solar PV, battery storage and an electric car charge point installed at the local village hall.

Community Energy Wales (“CEW”), initially funded by the Welsh Government, is a not- for- profit membership organisation which provides assistance and a voice to community energy projects across Wales. Its stated core mission is “to support and accelerate the transition to a fair, net zero and community-led energy system…. based on an overarching vision that communities should not only participate in, and shape the energy system, but also that Welsh communities retain benefit from the energy transition”.

In its State of the Sector Report 2022, sponsored by the Welsh Government, CEW identifies that community energy organisations are in a unique position to tackle climate change and community development in tandem, positively impacting the retention of local income and capacity building.

In 2022, there were 67 community energy organisations across Wales, 32 of which installed electricity generation schemes, powering 15,000 Welsh households.

£4.3m was invested in the community energy sector in Wales in 2021, primarily through shares and grants. This had a significant economic impact, with an increase in FTE employment and a boost to local economies in Wales, with 75% of the organisational expenditure retained locally. The social impact was also significant, in terms of reducing CO2 emissions, developing local support for renewable energy, and community ownership of assets/land.

According to Community Energy Wales, however, experience shows that “the journey from an initial idea to the realisation of a project can be fraught with frustration and delay”.

11 electricity generation projects stalled in 2021, a key factor in which was not public opposition, but a lack of organisational capacity, requiring a significant amount of time and commitment. Whilst the sector is said to remain viable, this is at a scale which is challenging for community projects, facing competition from larger developers.

Those that contributed survey data upon which the report is based identified current barriers to enabling community energy in Wales to reach its potential as early- stage funding, building capacity, new business models and lower grid costs.

The House of Commons Welsh Affairs Committee report on Grid Capacity in Wales, published in October 2022, commented on problems with grid capacity and connecting to the electricity grid in Wales and the challenges that poses for community energy projects. The Committee highlighted the issue of community benefits from commercial generation projects and the importance of local communities receiving benefits from hosting grid infrastructure of national importance. The Committee stressed that communities should be directly consulted on the benefits they would like to receive and stated that a starting presumption should be introduced that a proportion of all future energy projects must be partly community-owned or provide direct benefits to the community which hosts the energy project and associated grid infrastructure, such as reduced energy bills.

In October 2022, the Minister for Climate Change, MS Julie James, announced the creation of a state-owned energy developer in Wales, in order to deliver greater benefit for the people of Wales from energy projects created in Wales. She announced that the new state-owned energy developer will scale up renewable energy rollout, initially through the development of onshore wind projects, on the Welsh Government woodland estate. She flagged that to date, some renewable energy projects on the Welsh Government woodland estate have been developed by state-owned energy developers, meaning profits go back to their respective countries. In her announcement to the Senedd, the Minister’s stated aim was “… to harvest our wind and use it to produce power that directly benefits people in Wales.”

So how does Green GEN Cymru/Bute Energy Group’s plan for an energy park in the Radnor Forest, a 90km long power line/pylon route connecting to the grid in Camarthenshire, and 20+ further energy parks along the route meet the Welsh Government’s policy on local ownership of energy generation in Wales and the generation of direct benefits for the people of Wales?

IT DOESN’T:

• NO local ownership, or even shared ownership, within the Welsh Government’s policy definition – the Bute Energy Group, albeit with a “local” office in Cardiff, is not an organisation wholly owned and based in Wales, or an organisation whose principal headquarters are located in Wales. Bute is ultimately owned/controlled by a company registered in the Netherlands, and funded by investors in Denmark, with a legal charge over all of its assets as security for loans from offshore investors.

• Bute has NO real connection with Wales or long term investment in Wales’ interests

• Power generated form this scheme is NOT for the benefit of Wales – it is for export.