A comparative analysis of the costs of onshore wind energy: Is there a case for community-specific policy support?

Berka, Anna; Harnmeijer, Jelte; Roberts, Deborah; Phimister, Euan; Msika, Joshua

doi:10.1016/j.enpol.2017.03.070

Cited by 21 publications

(16 citation statements)

References 57 publications

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“…Previous research in the UK 51 , Belgium 15 and Germany 16,18 finds that people invest in community energy projects for a mix of financial and non-financial reasons, and local investors may invest larger sums 15 . Our analysis shows that, while it is clear from previous research that community projects can face additional costs and challenges [29][30][31] , a community approach may also bring some financial advantages.…”

Section: Discussionmentioning

confidence: 84%

“…Much of the literature on the UK community energy sector focusses on the qualitative exploration of the definitions, motivations and challenges for projects, and how they engage with questions of justice and poverty 6-8, 10, 11, 19-27 . Nevertheless, some studies have examined the sector's finance and business models 9,13,[28][29][30][31][32][33] . In particular, sector-wide surveys have played an important role in establishing the size and structure of the sector, gathering some data on finance; however, these surveys do not offer project-level analysis on financial performance 9,13,33 .…”

Section: Table 1 About Herementioning

confidence: 99%

“…A government-convened working group on Community Energy Finance offered insight into difficulties faced by community projects, but did not present an analysis of empirical data 29 . We are only aware of one previous quantitative study of community energy business models at project level, which compares the costs of community-owned and commercially-owned wind and hydro energy projects in Scotland 30,31 . The study provides valuable detailed evidence on the distinctiveness of community energy, finding that community projects face additional risks and transaction costs compared to commercial projects.…”

Section: Table 1 About Herementioning

confidence: 99%

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Business models and financial characteristics of community energy in the UK

et al. 2020

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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.

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Section: Discussionmentioning

confidence: 84%

Section: Table 1 About Herementioning

confidence: 99%

Section: Table 1 About Herementioning

confidence: 99%

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Business models and financial characteristics of community energy in the UK

et al. 2020

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“…Frantzeskaki et al [11] argue that, despite a political desire for community energy, existing mechanisms and policies are inconsistent and incompliant. Underlining this perspective, Berka et al [12] show that community energy projects face higher costs due to several factors, such as internal processes, diseconomies of scale, local opposition and acceptance, among others. Moreover, despite the existence of around 5,000 community energy groups up to March 2015 in the UK 1 [13, 14], the electricity generation is led by few "major power producers" [15].…”

Section: Introductionmentioning

confidence: 99%

The Scottish experience in community energy development: A starting point for Chile

González

Sauma

Weijde

2019

Renewable and Sustainable Energy Reviews

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This study presents an overview of the relevant evidence available up to now regarding the Scottish experience in relation to the development of community energy projects. Scotland has a relevant number of community energy projects which are generating energy, improving the quality of life of communities through sustainable initiatives. This is the result of the implementation of successful policies to encourage community energy by the Scottish government (in comparison with other countries). On the contrary, the Chilean community energy sector is still incipient, despite some interest; public policies have been focused on fostering the concept of distributed generation. Chilean community energy developments have not been analysed in any detail; this paper is a first attempt to do so, and to derive lessons from the Scottish experience that can be useful to Chilean policy makers. We summarise and analyse the Scottish and Chilean community energy sectors and their developments. We further analyse the current Chilean net billing scheme using concepts from game theory, showing that it may not be the best support mechanism for community energy developments. Based on these analyses, we define a list of policy recommendations for Chile, which can help further development in the community energy sector.

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“…Some studies have investigated the role of ownership in the attractiveness of investments in wind turbines (see e.g., [25,26]) and in DH systems (see e.g., [27]). The differences in attractiveness of investments is to some extent related to the fact that different types of investors seek different levels of profitability and investment time horizons.…”

Section: Attractiveness Of Investments In Vre and P2h In Dh Systemsmentioning

confidence: 99%

The Benefits of Local Cross-Sector Consumer Ownership Models for the Transition to a Renewable Smart Energy System in Denmark. An Exploratory Study

Gorroño-Albizu

2020

Energies

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Smart energy systems (SESs), with integrated energy sectors, provide several advantages over single-sector approaches for the development of renewable energy systems. However, cross-sector integration is at an early stage even in areas challenged by the existing high shares of variable renewable energy (VRE). The promotion of cross-sector integration requires institutional incentives and new forms of actor participation and interaction that are suitable to address the organisational challenges of implementing and operating SESs. Taking as the point of departure an empirical case and its institutional context, this article presents an exploratory study of the ability of cross-sector consumer ownership at different locations in the power distribution system to address those challenges in Denmark. The methods comprise interviews of relevant stakeholders and a literature review. The results indicate that distant and local cross-sector integration will be necessary to reduce overinvestments in the grid and that consumer co-ownership of wind turbines and power-to-heat (P2H) units in district heating (DH) systems may provide advantages over common separate ownership with regard to local acceptance and attractiveness of investments. Several possibilities are identified to improve the current institutional incentive system in Denmark. Finally, the results suggest the relevance of analysing the possibility for single-sector energy companies to transition to smart energy companies.

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A comparative analysis of the costs of onshore wind energy: Is there a case for community-specific policy support?

Cited by 21 publications

References 57 publications

Business models and financial characteristics of community energy in the UK

Business models and financial characteristics of community energy in the UK

The Scottish experience in community energy development: A starting point for Chile

The Benefits of Local Cross-Sector Consumer Ownership Models for the Transition to a Renewable Smart Energy System in Denmark. An Exploratory Study

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