Community Energy Development in Scotland Mo Cloonan

Our Mission ‘To build confidence, resilience and wealth at community level in Scotland through sustainable energy development’

Community Energy Scotland Independent Scottish charity 17 staff spread across Scotland, including Orkney and Western Isles Over 400 members- mostly non-profit distributing community groups Supported over 600 community energy installations across Scotland, totalling 38MW capacity; 140MW pipeline Our projects provide income and affordable energy worth over £5 million per year to local people

What is a community energy project? Microgeneration to Multi MW. Typical project 0.5-1MW. Local community groups making the most of their local energy resources to increase energy effiency, substitute fossil fuels and create local wealth and resilience 100% ownership- JVs Likely first time but not nec one off Issues in common with many farmers and SME DG

Beginnings .. Energy efficiency and micro-generation Building integrated

Outcomes Q3. Has there been a change in Q4. If the project provides heat energy output, is the facility warmer as a result of the project? Less warm 5% Same 10% Warmer 85% Q3. Has there been a change in the number of people using the facility as a result of the Project? Less 0% Same 69% More 31% Q34. Has your project generated much positive interest in renewables amongst the local community ? No 17% Yes 83%

Microgen Increasing sustainability Reducing energy costs Creating better more affordable services and comfort levels Re-investment in service provision Additional events and classes Additional income from additional events 8500 additional visits pa £10,000 pa saving on fuel Biomass installation Averon Centre, Alness

Early support mechanisms CES dedicated to helping communities get engaged and develop skills Highlands and Islands Enterprise – Community remit Scottish Government funding Make the link between HIE support to start with its community and social development roles in rural areas and Udaras na Gaeltachta

Small scale larger scale Enthusiastic and motivated communities Support available Learning shared Create a greater community benefit – long term income Make the link between HIE support to start with its community and social development roles in rural areas and Udaras na Gaeltachta

Revenue Generating projects Gigha Community Windfarm Westray Community Turbine Tiree Community Turbine Shapinsay Community Turbine Rousay Egilsay and Wyre Turbine Stronsay Community Turbine Eday Community Turbine Hoy Community Turbine Horshader Community Turbine Galson Community Turbine Abernethy Hydro North Yell Development Tidal Turbine ….. And many more

Revenue Generating projects WHY? = Regeneration Tackle fuel poverty Energy conservation in homes and businesses Employment opportunities Affordable housing Dynamic sustainable community Improve local amenities Health & leisure facilities Business development

Commercial developments – community interaction Moving away from typical community benefit model Community Benefit Register Commercial/community joint ventures Community share options

Innovation - More needed to really address local energy needs Energy Costs and Climate change Local energy supply – lots of renewables – no direct impact on energy price at household level Feed in tariff degression Grid Access constraints

What is driving innovation? Heating fuel and transport costs The enrgy crunch- UK level but more intense in periphery Orkney and Shetland 3.7kW max, Argyll/Skye/Lochaber 50kW max ‘til post 2020 20% FiT cut Public acceptance 10% year on year electricity, greater for oil 80% on heat and transport

What is driving innovation? Feed in Tariff Degression The enrgy crunch- UK level but more intense in periphery Orkney and Shetland 3.7kW max, Argyll/Skye/Lochaber 50kW max ‘til post 2020 20% FiT cut Public acceptance 10% year on year electricity, greater for oil 80% on heat and transport Average reduction of 40% over 5 years Project costs have not reduced by 40%

Grid constraints driving change £5.25m grid costs- 27km upgrade Delayed out to 2021..

Greater net community benefit Maximise the gains by using energy locally.. Local storage Local consumption Local generation Local ownership Consumer engagement Greater net community benefit Most gains happen when we use our own energy... More - electricity to heat projects, storage and demand management, electric cars Less – heat from oil or LPG, more focus on energy efficiency in homes and processes, appliances and technology. Local Energy Economy

Local Energy Economies – The 4 Pillars Local Generation Local Finance Local Supply Smart demand management

Local Energy Economy Concept Cash flow Energy Energy Energy H2 Local generation Local supply Local demand National Grid Local Finance (community ownership)

What is driving innovation? (4) Adding value The enrgy crunch- UK level but more intense in periphery Orkney and Shetland 3.7kW max, Argyll/Skye/Lochaber 50kW max ‘til post 2020 20% FiT cut Public acceptance 10% year on year electricity, greater for oil 80% on heat and transport Ref James Hutton Institute and Gilmorton Rural Development, Draft report Significant additional income to community generator from local finance and local electricity supply

Making a start ..... CARES Infrastructure and Innovation Fund Intelligent Energy Europe – building Local Authority enthusiasm Knowledge Transfer Partnership – UK Technology Strategy Board& SSE

ARC: Accelerating Renewable Connections Isle of Gigha – Battery Storage Project The Highlands and Islands Local Energy Economy Programme

Scottish Government Local Energy Challenge Fund £20m fund Fund Criteria Linking local energy demand with local renewable energy generation. Overcoming barriers relating to grid capacity issues. Applying energy storage and active network management. Delivering renewable heat and electricity to local consumers. Encouraging local finance solutions.

Grid Innovation Demonstration Projects LEEP CARES IIF LEEP & IIF ARC DECC Hydrogen Controllable demand Electric cars Battery Energy Storage

Energy storage: Gigha Battery project Network Constraint Energy Generation Power Flow Vanadium flow battery 330kW 225kW

Community microgrid: Applecross District Heating 90kW Community Hydro Scheme Smart Heating Control Communication Link Community Owned Distribution Network 50kW grid connection Public Distribution Network Power Flow Network Constraint Smart Heating Demand

Virtual Private Network: Mull ACCESS project Creating a platform to utilise constrained hydro power to power a controllable electrical demand ( smart storage heaters ) and provide a community heat solution to address fuel poverty

Scotland’s Independent Community Energy Development Charity Community Energy Scotland 2b Fodderty Way, Dingwall, IV15 9XB, Scotland +44(0)1349860120 www.communityenergyscotland.org.uk Scotland’s Independent Community Energy Development Charity http://www.communityenergyscotland.org.uk Scottish Charity Number: SC039673