Local solutions to the global climate crisis: community energy in Oxfordshire
It’s easy to see only negatives when it comes to our global climate crisis — islands drowned by rising seas, summers that are too hot for anyone to handle, deadly viruses made more likely animals being displaced from their historic habitats. And that’s just the tip of the iceberg (yes, pun intended).
But it’s also true that there are a myriad of solutions being developed across the world, and particularly at a local, grassroots level. That doesn’t mean that political and business leaders get let off the hook. But, it is important for us to take a look at the positive actions taking place occasionally — not least because it’s been proven that we’re more likely to take action ourselves if we feel motivation and see the potential to change. Relentless negative stories (and images, for that matter) on the climate crisis won’t get us anywhere.
One of those solutions is the rise of community energy.
What is community energy?
Community energy refers to the delivery of community-led energy projects. This most often relates to the installation of community-led or community-owned renewable energy generation installations, but it also encompasses energy demand reduction (or energy efficiency) projects). These may be wholly owned and/or controlled by communities or through partnership with commercial or public sector organisations.
Democratic control, active participation, and shared benefits for the local community are placed at the centre of delivering a community energy project. This gives community energy projects a unique potential to engage people with the importance of restructuring our energy system if we want to reach a zero carbon society. Members of the community are no longer simply consumers of the energy created (or saved) but are partners within that process of change. They also share in the benefits (often gaining a share of any income) and so feel a connection to the outcomes which means they’re more likely to become actively and passionately involved to have their say.
Reducing energy demand and increasing the amount of renewable energy in the mix is crucial if we are to meet targets — in Britain, for instance, we have a legally binding target to reduce carbon emissions to net zero by 2050. We cannot continue to rely on burning fossil fuels as our energy source if we are going to do this. Switching to a predominantly renewable energy system, whilst reducing energy demand, requires significant alterations to our infrastructure and our collective behaviour. And if we want to achieve that, this kind of active community foundation is exactly what we need.
Community energy projects are already in operation across the UK (and the world), successfully showing how this model can work. One area which has been leading the way is Oxfordshire. Here’s why…
Case study: Community energy in Oxfordshire
As a county, Oxfordshire currently spends around £1.5 billion per year on energy use. The vast majority of that money goes out of the hands of local people and organisations, and straight into the pockets of large-scale energy companies, most of which operate outside of the UK. The Low Carbon Hub was set up to change that.
The Low Carbon Hub is a social enterprise in Oxfordshire, working to prove that we can meet our energy needs in a way that’s good for people and for the planet — in Oxfordshire and beyond. The Hub was established in 2011 and is now involved in a whole host of low carbon energy programmes (both powering up and powering down), but community energy has always been at the core of their work — their ambition is for the whole of Oxfordshire to be powered by an interconnected series of smart micro-grids centred around multiple small-scale, community-controlled renewable energy schemes.
As of January 2020 the Low Carbon Hub managed 44 renewable energy projects, with a total capacity of 4.4 GWh of electricity per year — enough to power 1,405 typical homes and save 1,244 tonnes of CO₂ from being emitted every year. These are mostly solar PV rooftop arrays installed on schools, businesses, and community buildings across Oxfordshire. Their model uses investment to raise the upfront capital needed to create the installations, meaning that it’s free for the building owner. They then offer discounted energy to the building owner, so that they benefit financially from the installation too — this is the community energy aspect. Plus, the investors who made the projects possible in the first place gain a financial return on their investment, so individuals in the community also benefit.
If you’re interested in these projects, the Low Carbon Hub has also created People’s Power Station — an online directory showcasing all renewable energy generation and energy efficiency projects in Oxfordshire, including their own. There are currently 271 projects listed on the website.
As well as solar energy installations, the Low Carbon Hub also constructed and manages Sandford Hydro — which also happens to be a brilliant case study of the way this community energy model works.
Sandford Hydro is the largest community-owned hydroelectric power station on the River Thames. It uses the power of the river to generate clean electricity, with zero carbon emissions. The water flows through three screws, and its weight and flow causes them to turn. A generator is connected to the screws which turns this rotational energy into usable electricity.
Sandford Hydro began as a community project by local residents in Kennington and Sandford, who had long had the idea of harnessing the power of the River Thames at Sandford Lock to generate clean electricity. In 2016 they teamed up with the Low Carbon Hub to see their vision through to reality — with the Hub taking on the development and ongoing management of the Hydro, but the community maintaining a say.
The construction of the Hydro, of course, came with financial costs. In order to fund the construction, the Low Carbon Hub opened a Community Share Offer, asking local people to invest their money to finance Sandford Hydro. In the first round of the Share Offer in July 2016, they raised £822,000. They then re-opened the Offer in 2017, raising a further £652,000 by June 2017 — bringing total investment raised to £1.4 million, meaning that construction could be completed.
As well as ensuring that the project could go ahead, these investors also gain financially from their investment with a 5% target interest rate. The electricity we generate through Sandford Hydro is sold and exported to the National Grid for use. Money gained from the sale gives a financial return to the local people who invested in the development of the Sandford Hydro, as well as bringing clean power to their homes and buildings.
If we are to bring to life an energy system centred around renewable generation, we need many more community projects just like those in Oxfordshire highlighted here. There are organisations just like the Low Carbon Hub across the country, working to build more of these projects, creating local renewable energy sources that benefit the local economy, environment, and people in a way that our existing fossil fuel system cannot.
What can you do to support community energy? Here are a few thoughts:
- Have a search around and see if there’s a community energy group or organisation in your local area that you could get involved with — if there isn’t, why not take the plunge and be the one who sets it up!
- Find out if there are any community-led renewable energy projects in the works in your area e.g. in planning applications. If there are, put your support behind them through contacting your local councillor or MP.
- If you have spare money, keep an eye out for investment opportunities like the Low Carbon Hub’s Community Energy Fund, which allow you to put your money into the development of community energy projects. Ethical investment platforms like Ethex often have brilliant projects which need investment to come to life.
