The decarbonisation of energy systems is leading to a reconfiguration of the geographies of energy. One example is the emergence of community energy, which has become a popular object of study for geographers. Although widely acknowledged to be a contested, capacious, and flexible term, "community energy" is commonly presented as singular, bounded, and localised. In this paper, we challenge this conception of community energy by considering evidence about the role and influence of three categories of actors: community, state, and private sector. We demonstrate how community energy projects are unavoidably entangled with a diversity of actors and institutions operating at and across multiple scales. We therefore argue that community energy is enabled and constituted by trans-scalar assemblages of overlapping actors, which demands multi-sectoral participation and coordination. We point to the need for further academic attention on the boundaries between these actors to better understand the role of different intermediary practices and relationships in facilitating the development of decentralised energy systems with just outcomes.This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
Community energy projects take a decentralised and participatory approach to low-carbon energy. We present a quantitative analysis of business models, financing mechanisms and financial performance of UK community energy projects, based on a new survey. We find that business models depend on technology, project size, and fine-tuning of operations to local contexts. While larger projects rely more on loans, community shares are the most common and cheapest financial instrument in the sector. Community energy has pioneered low-cost citizen finance for renewables, but its future is threatened by reductions, and instability, in policy support. Over 90% of the projects in our sample make a financial surplus during our single-year snapshot, but this falls to just 20% if we remove income from price guarantee mechanisms, such as the Feed-in Tariff. Renewed support and/or business model innovations are therefore needed for the sector to realise its potential contribution to the low-carbon energy transition.
We use the term 'Great Britain' rather than 'United Kingdom' as the latter term refers to England, Scotland, Wales and Northern Ireland, but the research that this paper is based on was not conducted in Northern Ireland. Several aspects of energy regulation are different in Northern Ireland. 2 The term 'third sector' refers to charities, social enterprises, voluntary organisations and similar groups. It includes a diverse range of 'not for profit' organisations that are neither part of the public sector (the state) nor the private sector (commercial 'for profit' organisations).
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