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New fund allows communities to create power stations

A new £10 million fund will make it possible for local communities to come together and create their own power stations. Funding will be made available as part of the Urban Community Energy Fund and allow community groups to apply for grants of up to £20,000 or loans of up to £130,000.

The initiative is a way of encouraging people to look towards greener formers of energy, and it is part of the government drive to move towards cleaner methods of energy generation.

Under the scheme, communities will be able to create local “power hubs” by finding innovative new ways to generate renewable energy. Examples include the installation of solar panels on buildings, and the construction of anaerobic digestion plants, which would take local waste and burn it to create energy.

Energy and Climate Change Secretary Ed Davey said:

“I want to give more people the power to generate their own electricity and by supporting community energy projects we can - helping them drive down their energy bills at the same time.

“That’s why we’ve pledged £10 million, so communities can play their part in generating renewable power at a local level. This is all about investing in renewable energy sources, creating jobs and changing the way renewable energy is developed in the UK.”

New Initiatives

East Sussex is being cited as one area that has come up with a unique idea that provides a greener source of energy, as well as helping to save money on energy bills. A local community energy scheme fitted solar panels into the brewery walls, and now uses the sun’s rays to help it provide green fuel. The scheme allows the brewery to reduce the cost of their energy bills, and the community also gains as it gets money back from the Feed in Tariff.

Feed in Tariff Scheme

Communities that wish to develop their own energy schemes have now been told that they will get additional support from the Feed in Tariff Scheme. The Feed in Tariff Scheme allows community energy project owners to earn extra money by getting paid for the energy production.

Community Investment Projects

According to research from Ethex, renewable energy schemes have fast become one of the most popular types of community investment projects and have already generated millions of pounds. It is hoped that with additional support from the government, many more community investment projects will be set up, allowing entire communities to benefit from the generation of green energy.

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