The Community Energy sector has been challenged since the Government’s new position on incentives for renewables. This is the chance for the United Kingdom to explore the new model of local energy communities that are possible thanks to smart and microgrids, energy sharing in a peer-to-peer dynamic and technology like smart meters and SNOCU units.
Since the end of the Feed-in Tariff Scheme (FITS) last year, the community energy sector in the United Kingdom has been struggling. At the same time, the lack of support from government incentives also creates an opportunity for new strategies and business models to thrive.
According to the data published by statista last February, solar energy generation in the United Kingdom increased rapidly, especially between 2011 and 2018, thanks to a mix of technological development and launch of the government’s Feed-In Tariff scheme (FITs) in 2010. The last official data on electricity and heat production from photovoltaic generation recorded 12,857 GW hours in 2018 with a cumulative installed capacity of 13,098 MW.
This growth is also due to the contribution of the Community Energy sector, which evolved alongside solar panel distribution. Its exact size is unknown but around 300 community organisations have been counted, managing different kinds of community-owned renewable initiatives, not all solar. The first community-owned renewable project connected to the grid was a wind farm in Cornwall in 1991.
According to UKERC research, Community Energy includes any energy project completely or partially controlled or owned by a group of people identifiable as a community, for instance co-operatives. It also includes any project with two or more of the following features:
The UK Government underlines that the keyword of Community Energy is "local": local engagement, leadership, control, and outcomes. Local stakeholders own or control the majority of the sustainable energy projects, voting remains democratic and social and economic benefits are shared locally.
The benefits of these projects are both economic and social: community energy enhances local acceptance and awareness of renewable energy sources and emphasizes the importance of decreasing fossil-based energy consumption. At the same time, local communities have the chance to access energy at a lower cost, to maximise energy efficiency and to create local jobs.
Regardless of whether you live in a flat in the city centre with a shared rooftop or a terraced house in the countryside, you can monitor and analyse your energy consumption and the performance of your PV and ESS (Energy Storage System), balancing the energy you share with other community members. In any of these scenarios, the benefits of sharing energy can be further improved by installing SNOCU units and joining the Regalgrid platform.
The State of the Sector 2019 report by Community Energy England collects data for England, Wales and Northern Ireland and counts 275 Community Energy Organisations all across these regions. 136 of them are Community Benefit Societies, 42 are Co-operatives and 22 are Charity Organisations.
These projects require a decentralised system connected to the distribution grid. Organisations often reinvest incomes in low-carbon initiatives. Most of the projects funded are actually related to energy efficiency: energy switching, smart-meter installation, energy-efficient lighting and insulation.
London is a city that is particularly active in community energy. The specific report shares some available data for 2018. The Non-Profit Organisation that has gathered the data mentions 35 projects under way, an installed solar capacity of 475 kW and crowdfunded investment reaching over £600,000.
For instance, Repowering is developing a community-owned project, working with local people. They are planning to install solar PV panels allegedly with a capacity of 50 kW on rooftops in the Middlesex Street Estate in the Portsoken ward, and to fund this £48,000 project by selling shares to community members and thanks to donations from corporations which want to increase sustainable actions.
In Scotland, the latest report was published in January 2020, presenting data relative to June 2019. At that time 43 organisations were active and 58 more were in other stages of development. The operational capacity of active communities was 82 MW. Most of the energy was generated by wind farms (44% of operational capacity) and biomass systems (26%). Solar photovoltaic represents only 8% of the total capacity, but it is the most common choice for domestic systems (8,650 installations).
Energy communities play an important role in the UK energy market and progressively in many other countries. Their contribution to expansion of DERs (Distributed Energy Resources) is significant and the number of communities in operation demonstrates that a good level of efficiency can be reached through decentralised operation, management and consumption of energy from on-site renewables.
Thanks to the Regalgrid® platform, UK energy communities can be transformed into smart, digital grids that maximise the contribution from DERs to the benefit of all members.
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Regalgrid Europe is an innovative technology provider based in Treviso, born with the aim of developing a sustainable, advanced and innovative renewable energy management system.
Microgrids are a state-of-the-art solution to the challenges facing the UK’s electric network. Understanding the potential of microgrids is important to envision an efficient and sustainable energy distribution.
One key advantage of microgrids is their ability to improve energy distribution. By connecting small-scale power sources to the local grid, microgrids reduce transmission losses and ensure a more reliable electricity supply. This means communities can access a more resilient power system, reducing the risk of blackouts and other disruptions.
Furthermore, microgrids provide an opportunity for renewable energy integration. With the rise of solar panels, wind turbines, and other renewable energy sources, microgrids can play a vital role in harnessing these resources and distributing clean energy to the community. This not only reduces reliance on fossil fuels but also helps to mitigate the environmental impact of energy production.
Microgrids are crucial in enhancing energy resilience by providing decentralized, sustainable, and reliable power solutions that can operate independently or in coordination with the main grid. Their ability to adapt to diverse situations and contribute to community and infrastructure resilience makes them a valuable component of modern energy systems.
Microgrids can operate in islanded mode, meaning they can disconnect from the main grid and continue to supply power locally. This capability is crucial during grid outages or emergencies, allowing critical facilities to maintain operations. In addition, microgrids can include energy storage systems, such as batteries. Energy storage enhances resilience by storing excess energy during periods of low demand and supplying it during high demand or emergencies.
Microgrids are playing a revolutionary role in energy distribution in the UK[2]. These localized power systems have the capacity to revolutionize energy transmission, offering a more efficient and sustainable alternative to traditional grid systems. One of the key advantages of microgrids is their ability to integrate renewable energy sources into the grid system.
Renewable energy integration is a critical component of the UK’s transition to a cleaner and more sustainable energy system. However, the intermittent nature of renewable energy, such as solar and wind power, poses challenges for the current grid system. Microgrids provide a solution using advanced software to enable higher penetration levels of small-scale distributed energy resources, including integration with small-scale battery storage technologies, resulting in improved network reliability and resilient energy supply.
About United kingdom community microgrids
As the photovoltaic (PV) industry continues to evolve, advancements in United kingdom community microgrids have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
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