Energy Systems Catapult welcomes the opportunity to provide evidence to the Energy Security and Net Zero Select Committee’s community energy at scale inquiry.

Key points:

• Community energy projects can offer substantial value in the transition to a Net Zero energy system and, depending on where they are sited, might also help alleviating grid constraints.
• Introduction of locational pricing would more fairly reward communities for local generation through lower prices that reflect reduced transmission reinforcement costs.
• Enabling community energy schemes to become ‘secondary suppliers’ would allow households to more easily purchase locally generated electricity, unlock the flexibility needed to manage fluctuating demand, and offer new business model opportunities for community owned assets.
• Local Area Energy Plans (LAEPs) have a key role in identifying the most appropriate and viable assets for the community and bridging the finance gap for projects.
• The definition of community energy should include providing flexibility to the grid – e.g. through storage or demand management – and there should be consideration about how to promote such strategies to increase the value of community energy.