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Community Renewable Energy handbook
COMMUNITY SUPPORT, PROJECT FINANCING & LEGAL ASPECTS
What is a community-led project?
The term 'community-led' is used to describe a renewable energy project which involves the community in one of two ways. A 'community of locality' may vary in size from a single farm or estate, to a village, town or a larger area of population. In this scenario, the community lives in the area in question and is affected by what happens. On the other hand, a 'community of interest' comprises a group of people who share an ethical or financial interest, rather than geographical proximity either to one another or to the project. There are four possible development models that a renewables community group can follow:
Developer-led - the project is taken through to commissioning by a commercial developer, who may then sell it to a group of local investors. The developer may also be contracted to operate and manage the project.
Existing group-led - an organisation such as a development trust or charity develops and may operate a project on behalf of a community.
Small group-led - the project is developed through to commissioning by a small group of local people, eg landowners or farmers, who will probably aim to sell the electricity or heat produced.
New group-led - a local community forms a group to control the development of a project and to manage it after construction. A commercial developer may be employed to assist.
Key issues
When setting up a scheme, the issues to be considered include:
Site selection, assessment and design.
Planning consent, regulatory permits and environmental impact assessment.
Finance for a project.
Electricity and heat sales options.
Financial and economic parameters.
Benefits of a community-led project
A financial return for the community and investors.
An increase in local employment in areas where traditional occupations are in decline.
A contribution towards environmental sustainability.
Some degree of control over the scheme for the community.
A sense of satisfaction for those involved.
Guide to the Community RE handbook
This handbook provides easy access to information on the key information, financing and legal issues involved in developing a community RE project including;
Regional support and advice centres
Information on grant aid
Project financing and financiers
Legal issues and lease agreements
Power purchase agreements and negotiating your way through the new electricity trading arrangements and the Governments Renewables Obligation |
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