The government has announced funding of £10m for communities in England for support in setting up local energy projects.
Both urban and rural communities will have the chance to win a portion of a new £10 million Community Energy Fund, with applications due to open in early autumn.
This funding will help to kickstart projects including small-scale wind farms and rooftop solar partnerships, as well as battery storage, rural heat networks, electric vehicle charging points, and fuel poverty alleviation schemes – all proposed, designed and owned by local people.
Minister for Nuclear and Networks Andrew Bowie said:
Local communities are at the heart of our plans to boost our energy security and grow the economy. The Community Energy Fund for England will empower communities to do just that.
With it, they’ll be able to drive forward innovative energy projects that will have a lasting positive impact, bringing costs down, building stronger communities, and securing clean energy for generations to come.
Importantly, these energy projects could expand beyond local areas by attracting further investment from the private sector, in turn inspiring other communities to power their area with energy from England.
The fund is designed to act as a catalyst for attracting private investment to scale up projects further down the line, supporting high-quality jobs and growth in the area.
The Community Energy Fund follows the success of the former Rural Community Energy Fund (RCEF), expanding the remit to include renewable energy investment for both rural and urban areas.
As with the Rural Community Energy Fund, the new fund will be delivered through Local Net Zero Hubs, which support local authorities to develop net zero projects and attract commercial investment.
Emma Bridge, Chief Executive of Community Energy England, said:
While this announcement is a positive step, we believe that the current funding allocation falls short of adequately supporting local communities. Community energy brings so many more benefits. It is tackling the cost of living crisis, the climate crisis, while reinvigorating communities. It harnesses the passion, expertise and capital of the local community and returns all its profits to benefit that community. Community energy is essential to achieving net zero. To unlock its full potential, and drive the growth of the sector right across the country, we urge the government to continue to work with the sector to overcome other barriers, to progress local supply and shared ownership of the fast-growing renewable energy sector.
We thank the Minister for this first step and we look forward to working with him and the wider government to ensure that community energy’s full potential is achieved.
We would also like to thank other dedicated MP supporters such as David Johnston, the sponsor of the Local Electricity Bill, and the Power for People campaign who have tirelessly championed community energy in Parliament and who worked to secure this deal.’
