Community Energy Challenges & Opportunities

Transcription

1 Community Energy Challenges & Opportunities Pete Capener : Chair of Bath & West Community Energy March 2016

2 Purpose To summarise current context and challenges facing BWCE as it moves towards a post subsidy world To outline key asks of a local energy supply deal 2

3 Bath & West Community Energy. Raised over 14 million through community shares and bonds;. 7.5MW of own solar PV and 7MW of community partner capacity;. 7% interest paid to members - 65k to community fund 3

4 Community Energy Who Owns? Wiltshire Wildlife Community Energy Who Controls? Who Benefits? 4

5 Extending dialogue into action Source: BWCE member survey 2015 Has being a member encouraged or helped you to... Take any actions to reduce your own carbon emissions or reliance on fossil fuels 10% 40% 50% 50% Talk more to friends, family, neighbours or colleagues about community energy 15% 28% 57% 72% Talk more to friends, family, neighbours or colleagues about climate change or energy security 12% 37% 51% 63% 0% 10% 20% 30% 40% 50% 60% 70% 5 No not really Yes some Yes a lot

6 Current context for community energy Current model dominated by community renewable electricity project delivery.and heavily reliant on Feed in Tariffs (FIT) Increasingly standardised delivery path through planning, grid connection, financial close Facing. FIT cuts and eventual demise Removal of EIS tax relief for investors Grid capacity constraints 6 Short term options for BWCE Act quickly on FIT Opportunities for purchasing commercial schemes Test continuing appetite for investment, offer new financial instruments Engage with Distribution Network Operators around alternative grid connection Consider options for renewable heat - challenging

7 Transition towards a Post Subsidy World. 1. Reduce Costs Easier with solar than with hydro or wind BUT Need construction costs and operation & maintenance (O&M) down by a third & sell electricity on site. E.g. for a 100kW Solar PV array Without FIT, need Construction costs to come down from 1,100/kW to 750/kW O&M to fall from 15-20/kW/yr to 10/kW/yr 7 And sell 100% of electricity generated on site at 10p/kWh Or find very cheap finance

8 Transition towards a Post Subsidy World. 2. Increase project value Direct connection/private wire Sleeving Gap between wholesale and retail pricing for electricity Vertical Integration through energy supply Demand shifting/ management & storage p/kwh Retail consumer Commercial consumer Export tariff?? Wholesale market 8 0

9 Maximising wholesale price Domestic Load kwh Wholesale price p/kwh Domestic load 9 Wholesale

10 10

11 Energy supply options in the market Setting up as a community energy supplier in our own right Local authority owned energy supply companies e.g. Bristol Energy Company Social enterprise suppliers e.g. Ebico, Cooperative Energy Existing renewable electricity suppliers e.g. Good Energy, Ecotricity New independent entrants e.g. Ovo, Tempus Energy 11

12 What do we want from energy supply? Social benefits no premium for renewable electricity, significantly cheaper than the big 6, fair pre-payment tariff Community benefits control/influence, profit share/sharing success, underpin viability of our community energy projects Increasing outreach and engagement transparency around supply of community renewables, links with community benefit society Potential for innovation e.g. integration of demand management/shifting and storage Enhancing community enterprise business model fair payment for services provided 12

13 Summary Dominant community energy model has been quite narrow - need to diversify Have looked at renewable heat and energy efficiency very challenging Have been reviewing our options on energy supply Current market options not a good fit for our purpose Have been co-developing an alternative with Mongoose Energy Ready to test proposals with our membership 13

14 Key Milestones Public announcement Mid April Market testing & brand development Finalising relationship with and between community benefit societies Finalising arrangements between Mongoose Energy and key service providers providing balancing/trading, metering, billing systems etc. Ramping up marketing in June for launch Soft launch currently planned for July, limited customer numbers assessment of systems by Ofgem Roll out currently planned for October-November Timing may shift 29

15 Do you support our approach to delivering a local energy supply tariff in partnership with Mongoose Energy? How should we involve our members in next steps? 30