UF response to the microgeneration strategy 

© Urban Forum 2011 

Urban Forum is particularly interested in advice and information provision, the dissemination of good practice and non-financial barriers for communities in establishing energy projects and this is reflected in the selection of questions we are responding to. We draw upon evidence based on both Urban Forum research published in 2010 which looks at lessons from across Europe in creating successful community and municipal energy projects1 and ongoing work being undertaken in partnership with the Centre for Sustainable Energy on supporting the emergence of strong civic environmental leadership.

Question 29: How can Urban Forum help Government disseminate the results from best practice and exemplar projects?

Urban Forum has a broad, inclusive and participative membership. The vast majority of membership comprises the voluntary and community sector which have a wide range of interest areas - a number of which, include concerns around issues such as addressing fuel poverty and other inequalities which result from environmental injustices and climate change.

Whilst Urban Forum don't specialise in climate change and carbon reductions issues as part of our core business, we recognise these issues as being cross-cutting issues which affect the whole of civil society and therefore we are mindful of them and seek to embed them within three out of four of our strategic priorities:

1) Effective local governance and neighbourhoods

2) Improved diversity, equalities and cohesion

3) Enhanced places and the built environment

4) Strengthened impact assessment

Urban Forum sees its membership as having a very crucial role in helping to mainstream carbon reduction and subsequent behavioural change action across civil society. They are due to the fact that members are in trusted positions within communities and are best placed to widen carbon reduction ambitions to the Big Society vision of sustainable and resilient communities. Microgeneration activities offer huge opportunities in contributing to community sustainability and resilience.

Urban Forum specialises in making available a wide-range of complex information in clear and plain English in the form of free briefings, research, reports, FAQs, Info-mails Policy Round-Ups, handy guides, events, www.urbanforum.org.uk and a quarterly magazine - Clearway. All these forms of communication enable various platforms for disseminating good practice and exemplar projects. Urban Forum members‟ are also freely able to disseminate our information across their own large networks.

Recommendation
Recent Urban Forum research undertaken shows us that to go beyond simply publishing case studies and good practice however, and in order to increase genuine interest and take-up of the current microgeneration incentives; the Government should assist established non-environmental voluntary and community groups (particularly in areas which experience higher levels of fuel poverty) to set up ‘microgeneration demonstration centres'. These sorts of community assets could be an extension of what the "Low Carbon Communities Challenge‟ fund aimed to achieve with 22 pilots and aim to extend to civil society community organisations in order to widen the scope and demonstrate the wider benefits associated with microgeneration at a community level. Evidence from across Europe3 shows that „come, see, touch and learn‟ is proven to be the best way for people to acquaint themselves with new technologies. Many "model/exemplar places" such as Copenhagen and Freiburg in Germany have established information and demonstration centres throughout their cities for energy efficiency and renewable energy to provide training and expertise, and to bring together a critical mass of experts, community groups, small businesses and other stakeholders to learn from each other.

Question 38: Can Urban Forum illustrate with examples the potential opportunity that the ‘community sector' presents?
The 'community sector' is incredibly well placed to reach out to the communities they work in, and can also influence government and business, and as such it has long been recognised that communities have a huge part to play in "waging the energy revolution". In Denmark and Sweden as the numbers of dispersed, renewable energy schemes increase then it is essential to engage the community groups and the wider public so that they can feel involved, consulted and supportive of the transition away from centralised fossil fuels. Not everyone is aware of the benefits of renewable energy and quite often there is public resentment towards the changes that take place on the landscape. Offering ownership opportunities, with real and tangible benefits are a route to dealing with concerns, What better way to handle any concern than offering ownership opportunities to individuals and communities where the benefits are real and tangible?

Community involvement schemes can be less contentious but are as beneficial as ownership schemes, providing a steady stream of income and allowing people to be members of a co-operative. Part or full ownership of energy projects are the most effective way to maintain profits in the local economy, provide a sense of involvement and thus increase the grass roots support for renewable energy and additional climate change mitigation measures. Revenue can be distributed locally and is then available for reinvestment elsewhere rather than servicing loans from city banks and overseas firms.

"By keeping money circulating in local economies, we can create more jobs, support community cohesion and have a smaller ecological footprint" Plugging the Leaks, New Economics Foundation.

Overall, the benefits of community-level energy solutions include:
 A direct stake in a local project
 Attractive financial return to members of the community
 Improved infrastructure for communities
 Extended economic benefits for the local area
 Delivery of local energy conservation projects
 Educational support on environmental issues
 Individual commitment to low carbon initiatives
 Being part of a mutual support network of other green co-operatives

There are many examples of the potential opportunity that the community sector presents and Urban Forum research5 illustrates strong examples from across Europe where this has been shown to be the case. Denmark for example has a long history of co-operatives and community investment which has helped the country to become one of the most successful nations for wind power in Europe. Going beyond financial incentives like the current Feed in Tariffs, during the 90‟s, families and community groups were offered a tax exemption for generating their own electricity within their own or an adjoining community and by 2001, over 100,000 families and community groups belong to wind turbine co-operatives. Such co-operatives have installed 86% of all the wind turbines throughout the country.

Question 39. What does Urban Forum feel are the non-financial barriers to developing community energy?

Bold vision and leadership
Without stronger leadership throughout locally elected members in the UK, we risk losing our best opportunity to reduce our pending energy crisis and the effects of climate change. Our current work with the Centre for Sustainable Energy around "Low Carbon Councillors"6 shows us that strong civic leadership can be nurtured by fostering direct support by way of skills and knowledge of low carbon planning and community engagement issues. Elected members are then able to go on and work together with the community sector and can demonstrate genuine leadership and understanding effectively.

Bold action itself is a vital communication tool showing commitment and reducing the confusing gap which arises between the catastrophe (which is so often talked about) and the modest actions so far. When people in communities see changes, then the story becomes real and low carbon living is then taken out of the speeches and into people‟s lives.

Recommendation
 Locally elected leaders need to venture out of their comfort zone to support community energy projects. Taking bold action so that change is evident is a vital communication tool and shows commitment.

Community engagement in land use planning

Research published by Urban Forum in 2009 "Places, Bases and Spaces" revealed that on the ground, local communities still struggle to get involved in decisions about their built environment. Community groups in the UK continue to engage with the planning system in a reactive way and at a late stage (most commonly by opposing planning applications) after many decisions have been taken. Neighbourhood planning as part of the Localism Bill offers huge opportunities for communities to be meaningfully engaged in the local planning and development process and at pre application stage in individual developments. It is crucial that communities get support and resources to enable them to be representative and put innovative energy project ideas forward which are taken up in an enabling planning system. The Government needs to ensure that this happens.

Recommendations
 The Neighbourhood planning process needs to genuinely engage and involve the local community and current proposals around pre application consultation stages of planning should include the commitment to act favourably towards community energy developments.
 Working with the VCS. Planners and developers need to make full use of the wealth of knowledge, networks and outreach skills provided by Voluntary and Community Sector when engaging and involving the public.

Debate and education
Embedded at the core of any strategy which requires a change in culture and mindset is the need for debate and environmental education. Understanding what the climate change debate means for communities will be a first step in creating the change.

Recommendation
 Encouraging Debate. There needs to be widespread debate about future energy supplies at both national and local levels facilitated by both the Government and the community sector, whilst drawing upon private sector expertise. This could be through some form of referendum or „local energy action debates‟. This will create a well informed public who understand the full implications of different energy choices. This debate should include the future development and role of all major energy infrastructure proposals currently being included in the UKs long term energy strategy.

Creating a culture for community ownership and co-operatives
What seems apparent is that further and much more integrated support and structures are needed for community-based approaches; otherwise the gap will increase - forcing issues such as fuel poverty to unprecedented levels. Energy usage, efficiency, and savings affect all sectors of society and if we are to reach the sort of targets which have been set, there needs to be more vehicles by which to do so. Consumer, community, and co-operatively owned are a few ways of achieving such ambitions in an equitable way.

There are already a number of established and emerging co-operative and community owned schemes operating throughout the UK. The standard investment model however (usually minimum investment £250), means that a vast number of society are still excluded. Other finance models are beginning to be developed to assist a much greater number of people in the UK to reduce their energy costs as well as increase efficiency and the use of renewable technology. „Consumer ownership‟ models work by collectively pooling the purchasing power of residents, local businesses and the public sector, as well as using monitoring tools such as 'smart meters' to work together to save money and tackle climate change.

Lack of capacity is the biggest barrier to action and most local authorities and parish councils are still not well enough equipped to promote energy schemes. Individual households are the target of energy companies rather than communities and so mechanisms are required to help start-up energy co-operatives, including business planning; community engagement and legal support.

Recommendations
 Joined-up action across Government. Central Government needs urgent joined-up action to support community driven energy projects. Co-operative energy is an ideal way to demonstrate the current talk of revitalisation of a co-operative and mutual movement by all government parties.
 A supported co-operative movement. The co-operative movement is working hard to create partnerships with local authorities and energy agencies, as well as share good practice and learning with partners across Europe. There needs to be more pro-active support and reciprocity from both local authorities and energy agencies in allowing such partnerships to flourish.

The need for a continuous and genuinely supportive policy environment
The UK Government‟s Renewable Energy Strategy 2009 and the current Microgeneration strategy profiles community owned and co-operative approaches to renewable energy production and supply. This is great news for energy efficiency, community empowerment, and proof that the policy makers also recognise the significance of public acceptability as a vital condition in meeting targets. The introduction of incentives like the Feed In Tariff have demonstrated that the community sector require a simple, accessible policy framework to encourage take-up in renewable energy. It's vital therefore that supportive policy structures continue and are extended.

The security of energy supply is the dominant issue in the UK and therefore policy incentives such as Feed In Tariffs are perhaps seen as of marginal interest in achieving renewable energy targets whereas delivering larger generation capacity is the critical business at hand in Westminster. It‟s essential that the public have the opportunity to engage in the debate around current major energy infrastructure as well as the opportunity to contribute ideas as to how highly decentralised energy networks might function effectively.

Recommendations
 Currently, the proposed National Planning Framework's ‘Major Infrastructure' proposals continue to threaten the transition to a low carbon economy by omitting national energy infrastructure (such as the next generation of coal-fired power stations) from carbon budgets. Ministers need to urgently alter these decisions to both engage the wider public and reduce the risk of potential legal action threatened by environmental groups.
 Strong, national and regional energy policies and mandates create enabling (framework) conditions to which local governments react. In addition to recently announced incentives like feed-in tariffs; further targets and incentives should be created in each city, town, and parish area in the UK such as funds for demonstrations or funding for development that explicitly incorporates renewable energy.

The need to facilitate effective partnerships between the community, private and public sector
The 'typical mix' is illustrated in places like Freiburg, Germany where partnerships between the community, public and private sectors are frequently facilitated in order to set up energy partnerships for mutual benefits. Evidence suggests that success in cultural and behavioural change can only come about as a result of engaging the community, public and private sector fully. Factors such as high levels of environmental awareness, committed community groups, the private sector and local authorities working together around political priorities and targeted economic development have enabled places like Freiburg to win its 'solar capital' status.

Recommendations
 Awards and competitions motivate and create practitioner-communities. In some countries, awards are given for "solar cities", "solar towns" and "solar villages," for example often on a regular or annual basis. This creates communities of motivated and like-minded individuals, local officials and public/private partnerships, who can then serve as mentors and potentially provide resources for those who wish to start similar activities in their own community.

Conclusion
Fully developing decentralised and community based renewable energy sources will result in a much more secure and self sufficient energy supply. Local energy networks offer considerable opportunities for strengthening local economies, skills base and innovation programmes and there is a need to accelerate the decentralisation of ownership and generation to make this happen. Policy interventions need to be more coordinated and inclusive and provide a more concerted commitment to the benefits of community-based processes.