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Community energy has been underserved by successive UK governments. As a result, much of the sector has been in survival mode for more than a decade. But what happens if we look ahead? If barriers are removed rather than managed? What are the sector’s ambitions – and what needs to change to realise them? Our latest paper, produced by Regen for National Grid Electricity Distribution, explores these questions in depth.
The Future of Community Energy draws on analysis of state of the sector data across the National Grid Electricity Distribution (NGED) region, insights from events led or sponsored by NGED and evidence gathered through interviews and a roundtable with community energy experts. It examines the key trends, development pathways and innovations that will shape the future of community energy.
Central to this analysis is the role of the distribution network operator (DNO) – and how DNO leadership will be critical to enabling community energy to scale and deliver on its potential.
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As DNOs prepare for the next price control period, this research provides timely evidence to inform business planning and practical approaches to supporting community energy ambitions. It sets out clear recommendations from sector experts, including how DNOs can:
• Ensure community energy strategies and future plans are reflected within the Regional Energy System Planning (RESP) process
• Support community energy organisations to play a stronger role in operating a smart, flexible network
• Enable shared ownership projects by ‘matchmaking’ communities and developers
• Trial approaches to reducing network constraints through local energy markets and community-aggregated flexibility, and monitor the network benefits these models can deliver
• Support the coordination and financing of place-based energy efficiency schemes, with inclusive engagement led by trusted local energy organisations.
To explore these recommendations in more detail – alongside further insights across the short term (i.e. the remainder of the ED2 business plan), medium term (the ED3 business plan from 2028-2033) and long term (a ten-year horizon to 2035 and beyond) – read the executive summary and the full report.
Regen is continuing to work with NGED and other DNOs to provide a greater understanding of the community energy sector. We are using evidence-led insights to support DNOs in planning their roles, individually and collaboratively, to support the community energy sector of the future.
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