Welsh communities ‘must be at heart of UK’s clean energy future’

Stephen Price

A grassroots Welsh community energy body has called for renewable energy projects in Wales to move to a mandatory shared ownership model to benefit Welsh communities.

Community Energy Wales, alongside its counterparts in Scotland and England, has issued a substantial joint response to the UK Government’s consultation on Community Benefits and Shared Ownership for Low Carbon Energy Infrastructure.

Speaking on behalf of nearly 1,000 community energy organisations across the UK, the three representative bodies are calling for mandatory community benefits and shared ownership schemes that deliver real, lasting value to communities – especially in Wales.

Ben Ferguson, Co-executive Director of Community Energy Wales, said: “Following a lack of participation from the private sector and a general disregard of the Welsh Government guidance on the shared ownership of commercial renewable energy projects, it’s Ynni Cymunedol Cymru’s view that we must move to a mandatory shared ownership policy.

“Only 3 out of 30 energy projects led by the private sector in Wales have engaged in shared ownership. Changing this is essential: shared ownership is a chance for communities to take ownership of the change in our energy system”.

Community wealth fund

Other policy positions include changing the way community benefit contributions are calculated from a per MW basis to a percentage of revenue on projects, which will ensure developers are paying a fair share of their profit into the community, as well as creating an uplift of community benefit available.

This uplift, they say, should go towards the creation of a national Community Wealth Fund, which would support long-term, community-led investments in energy, housing and local enterprise throughout the whole of Wales, not just in areas located close to energy infrastructure.

Leanne Wood, Co-executive Director of Community Energy Wales, said: “The £5,000 per MW benchmark for wind energy projects is not mandatory, is out of date at over 20 years old and is inconsistent with different companies paying different rates. The number needs changing to reflect our current economic situation.

“With a new levy on natural resources together with our share of the profits of a devolved Crown Estate, and other sources of finance like philanthropy, a new national Community Wealth Fund can be created
for Wales which will invest in new community owned businesses.

“Not just community energy businesses but whatever businesses communities want and need. Management of such a fund must be independent, with full control over how the money is spent in community hands via democratically accountable local organisations, not developers nor governments.

“One of the biggest barriers to community ownership of profitable assets is start-up finance. A Community Wealth Fund can help to overcome this barrier and help communities to build up an asset base to provide a steady income which will improve community resilience and protect local facilities and services over the long term.”

Inclusivity

Ben Ferguson added: “We must ensure that the change to our energy system is inclusive and just. No Welsh community should be left behind from benefiting from this opportunity”.

Community Energy Wales will launch their manifesto for the next Senedd elections in September, with a preview event at the National Eisteddfod in Wrexham on Wednesday 6 August.

If you would like to stay informed of their policy work, Ben and Leanne are encouraging the Welsh public to join RhanNi, the movement for community energy in Wales.