Thank you for contacting me about community energy.
There is no doubt that communities are
key to decarbonising the UK economy, and I am glad that the Government is
supportive of community energy.
Ofgem has existing flexibility to award
supply licences that are restricted to specified geographies and/or specified
types of premises. Furthermore, following a consultation process, since
February this year, Ofgem is welcoming applications from
community-interest groups, co-operative societies and community-benefit societies
to the industry voluntary redress scheme. This is enabling groups to apply
for funds to deliver energy-related projects that support energy consumers in
vulnerable situations, support decarbonisation and will benefit people in
England, Scotland and Wales.
To support community energy projects, the Government has funded the
Rural Community Energy Fund. This £10 million funding scheme was delivered
through the Local Energy Hubs which support rural communities in England to
develop renewable energy projects, which provide economic and social benefits
to the community. Since its launch in 2019, the fund received 1,668
enquiries, 203 applications and awarded millions of pounds worth of grants to
projects focusing on a variety of technologies, including solar, wind,
low-carbon heating and electric vehicle charging.
The Government has also
introduced other UK-wide growth funding schemes, such as the
Community Renewal Fund and the Towns Fund, through which it is enabling local
areas to tackle net zero goals in ways that best suit their needs. In
addition, I know the Government encourages community energy groups to work
closely with their local authority to support the development of community
energy projects within these schemes and plans to reintroduce the
Community Energy Contact Group to strengthen engagement with the sector.
The Energy White Paper, published in December 2020, also committed
government to review the overall retail market regulatory framework and,
through this review, the Government will assess what changes may be needed to
allow for new supply propositions to come forward. I understand the Government
will engage with community stakeholders as part of the review and I
will follow any developments closely.
Once
again, thank you for taking the time to write. If you require any further
assistance, then please do not hesitate to get in touch.
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