Thank you for contacting me about community energy.
There is no doubt that communities are key to decarbonising the UK economy, and I am glad that the Government is supportive of community energy.
Ofgem has existing flexibility to award supply licences that are restricted to specified geographies and/or specified types of premises. Furthermore, following a consultation process, since February this year, Ofgem is welcoming applications from community-interest groups, co-operative societies and community-benefit societies to the industry voluntary redress scheme. This is enabling groups to apply for funds to deliver energy-related projects that support energy consumers in vulnerable situations, support decarbonisation and will benefit people in England, Scotland and Wales.
To support community energy projects, the Government has funded the Rural Community Energy Fund. This £10 million funding scheme was delivered through the Local Energy Hubs which support rural communities in England to develop renewable energy projects, which provide economic and social benefits to the community. Since its launch in 2019, the fund received 1,668 enquiries, 203 applications and awarded millions of pounds worth of grants to projects focusing on a variety of technologies, including solar, wind, low-carbon heating and electric vehicle charging.
The Government has also introduced other UK-wide growth funding schemes, such as the Community Renewal Fund and the Towns Fund, through which it is enabling local areas to tackle net zero goals in ways that best suit their needs. In addition, I know the Government encourages community energy groups to work closely with their local authority to support the development of community energy projects within these schemes and plans to reintroduce the Community Energy Contact Group to strengthen engagement with the sector.
While I am unaware of any plans to establish a new National Community Energy Fund, you may welcome that the Government continues to work with
Community Energy England to share best practice within the sector, so less experienced communities can learn from those already operating.
Thank you again for taking the time to contact me.