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Balcombe energy co-op: we aim to take power back from the corporations Balcombe energy co-op: we aim to take power back from the corporations
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Clean energy, generated locally. Surplus energy sold back to the grid. Residents free to invest as little as £250, and promised an annual return of 5%. Further profits placed in a community benefit fund to pay for local facilities or energy saving technologies for local people in fuel poverty. Britain's community renewable sector is tiny but it is growing. More than 40 community schemes currently offer just 66MW of installed capacity but there is another 200MW of community energy in development.Clean energy, generated locally. Surplus energy sold back to the grid. Residents free to invest as little as £250, and promised an annual return of 5%. Further profits placed in a community benefit fund to pay for local facilities or energy saving technologies for local people in fuel poverty. Britain's community renewable sector is tiny but it is growing. More than 40 community schemes currently offer just 66MW of installed capacity but there is another 200MW of community energy in development.
When people first hear the business plan for REPOWERBalcombe, one of an increasing number of energy co-operatives, they tend to have one response: where's the catch?When people first hear the business plan for REPOWERBalcombe, one of an increasing number of energy co-operatives, they tend to have one response: where's the catch?
"I don't think there is one," says Tom Parker, a gardener and renewables expert who is a member of the new Sussex co-operative. "People think it's too good to be true or that a bunch of volunteers can't run a business. I got told the other day, 'You won't be able to run this in your lunch hour'. I've recently spent my lunch hours reducing my children's school's energy by 50% so I don't see why we can't run a co-op with so many more helpers.""I don't think there is one," says Tom Parker, a gardener and renewables expert who is a member of the new Sussex co-operative. "People think it's too good to be true or that a bunch of volunteers can't run a business. I got told the other day, 'You won't be able to run this in your lunch hour'. I've recently spent my lunch hours reducing my children's school's energy by 50% so I don't see why we can't run a co-op with so many more helpers."
Few people have heard about community energy but REPOWERBalcombe may put this quietly growing grassroots movement on the map. The affluent village in the rolling Sussex weald is famed for last year's anti-fracking protests that got residents thinking about energy production and inspired a public meeting last autumn. Fifty people turned up and REPOWERBalcombe was born. The possibility of fracking polarised opinions, and while prospecting company Cuadrilla has said it will not frack in Balcombe it has a new 30-year lease on its village site and is planning to continue its search for oil. It was recently given permission by West Sussex county council to test oil extraction on a site in the outskirts of Balcombe.Few people have heard about community energy but REPOWERBalcombe may put this quietly growing grassroots movement on the map. The affluent village in the rolling Sussex weald is famed for last year's anti-fracking protests that got residents thinking about energy production and inspired a public meeting last autumn. Fifty people turned up and REPOWERBalcombe was born. The possibility of fracking polarised opinions, and while prospecting company Cuadrilla has said it will not frack in Balcombe it has a new 30-year lease on its village site and is planning to continue its search for oil. It was recently given permission by West Sussex county council to test oil extraction on a site in the outskirts of Balcombe.
REPOWERBalcombe meanwhile are at pains to stress they are not anti-fracking but simply want to supply the equivalent of 100% of Balcombe's electricity demand through community owned, locally generated renewable energy.REPOWERBalcombe meanwhile are at pains to stress they are not anti-fracking but simply want to supply the equivalent of 100% of Balcombe's electricity demand through community owned, locally generated renewable energy.
The group is seeking to raise an initial £300,000 from residents to fund the installation of PV solar panels on sites around Balcombe to generate 224kW of power, equivalent of 7.5% of Balcombe's current electricity usage. Contrary to some fears, this does not mean unsightly panels on everyone's houses: the group is seeking several larger sites, and has signed a deal for a 19kW system on a farmer's cowshed roof, funded by founder members. This should start supplying energy by late summer.The group is seeking to raise an initial £300,000 from residents to fund the installation of PV solar panels on sites around Balcombe to generate 224kW of power, equivalent of 7.5% of Balcombe's current electricity usage. Contrary to some fears, this does not mean unsightly panels on everyone's houses: the group is seeking several larger sites, and has signed a deal for a 19kW system on a farmer's cowshed roof, funded by founder members. This should start supplying energy by late summer.
"It's exciting doing something positive and doing something locally," says Jackie Emery, one of the residents supporting the co-op. "You feel like you are, forgive the pun, taking power back rather than being a victim of the big corporations.""It's exciting doing something positive and doing something locally," says Jackie Emery, one of the residents supporting the co-op. "You feel like you are, forgive the pun, taking power back rather than being a victim of the big corporations."
One of renewable energy's biggest drawbacks in Britain is that schemes appear to be the preserve of massive corporations: already wealthy shareholders and landowners reap the benefits, and the rest of us bear the cost of gazing upon industrial wind turbines or solar fields. If communities benefited directly by having a stake in such schemes – or devised them themselves – it would be far more popular, as proved in Denmark and Germany, where "community energy" made up 40% of total renewable energy by the end of 2010.One of renewable energy's biggest drawbacks in Britain is that schemes appear to be the preserve of massive corporations: already wealthy shareholders and landowners reap the benefits, and the rest of us bear the cost of gazing upon industrial wind turbines or solar fields. If communities benefited directly by having a stake in such schemes – or devised them themselves – it would be far more popular, as proved in Denmark and Germany, where "community energy" made up 40% of total renewable energy by the end of 2010.
The British government's community energy strategy, belatedly drawn up in January, is welcomed by Leo Murray at carbon campaign group 10:10, which is running a Back Balcombe campaign. But Murray would like to see the reform of British regulations that currently make it impossible for co-ops to sell locally generated energy directly to local people.The British government's community energy strategy, belatedly drawn up in January, is welcomed by Leo Murray at carbon campaign group 10:10, which is running a Back Balcombe campaign. But Murray would like to see the reform of British regulations that currently make it impossible for co-ops to sell locally generated energy directly to local people.
Instead, REPOWERBalcombe will install small-scale panel systems on farms and other businesses, offering a 20-year contract of dramatically reduced electricity bills (33% in its first installation) in exchange for housing the panels. The co-op makes money from selling excess power into the National Grid (the feed-in tariff scheme) which should provide a 5% annual return for investors. After three years, the investors begin to get their stake back too; after 20 years, the person housing the solar panel gets to keep the technology.Instead, REPOWERBalcombe will install small-scale panel systems on farms and other businesses, offering a 20-year contract of dramatically reduced electricity bills (33% in its first installation) in exchange for housing the panels. The co-op makes money from selling excess power into the National Grid (the feed-in tariff scheme) which should provide a 5% annual return for investors. After three years, the investors begin to get their stake back too; after 20 years, the person housing the solar panel gets to keep the technology.
It sounds too good to be true but when I meet Parker, it seems both brilliant and utterly plausible. One challenge for energy co-ops is to find volunteers with relevant skills. Perhaps Balcombe is lucky. Although it employs professionals to install its solar panels, one of its members is a qualified contractor and another, Parker, is as good as one. After starting with his house (now carbon neutral with solar PV, solar thermal and biomass wood pellets for heating), Parker has helped 15 renewable projects in the local area (including his children's school and his employer's house), gaining vital practical experience.It sounds too good to be true but when I meet Parker, it seems both brilliant and utterly plausible. One challenge for energy co-ops is to find volunteers with relevant skills. Perhaps Balcombe is lucky. Although it employs professionals to install its solar panels, one of its members is a qualified contractor and another, Parker, is as good as one. After starting with his house (now carbon neutral with solar PV, solar thermal and biomass wood pellets for heating), Parker has helped 15 renewable projects in the local area (including his children's school and his employer's house), gaining vital practical experience.
Solar sceptics point out that the energy generated from solar in cloudy Britain is much less than in countries further south, and highlight concerns over maintenance costs and reliability. In reality, Parker says, "every system has outperformed its estimates, every year I've had it. Quite often, bizarrely, it's undersold. The economics were much better than installers said." Real-world solar output estimates are based on Sheffield, so locations to the south tend to outperform their estimates, explains Parker, who has found he further improved performance by choosing optimum south-facing sites. Maintenance costs? In 15 years he's had none.Solar sceptics point out that the energy generated from solar in cloudy Britain is much less than in countries further south, and highlight concerns over maintenance costs and reliability. In reality, Parker says, "every system has outperformed its estimates, every year I've had it. Quite often, bizarrely, it's undersold. The economics were much better than installers said." Real-world solar output estimates are based on Sheffield, so locations to the south tend to outperform their estimates, explains Parker, who has found he further improved performance by choosing optimum south-facing sites. Maintenance costs? In 15 years he's had none.
Joe Nixon, another of the impressive working people running the group in their spare time, says REPOWERBalcombe only really lack a lawyer to help with contracts. They have, however, been helped by the growing renewables movement, including other co-operatives in the Energy4All group, local energy contractors and 10:10. "That speeds things up massively because you learn from other people's mistakes," says Nixon.Joe Nixon, another of the impressive working people running the group in their spare time, says REPOWERBalcombe only really lack a lawyer to help with contracts. They have, however, been helped by the growing renewables movement, including other co-operatives in the Energy4All group, local energy contractors and 10:10. "That speeds things up massively because you learn from other people's mistakes," says Nixon.
Community energy may be worthy but is there an economic catch? Balcombe is not Millionaires' Row and can a village of 1,800 people raise £300,000? "They are going to sneeze that out," says 10:10's Murray. "I anticipate that taking a week."Community energy may be worthy but is there an economic catch? Balcombe is not Millionaires' Row and can a village of 1,800 people raise £300,000? "They are going to sneeze that out," says 10:10's Murray. "I anticipate that taking a week."
If REPOWERBalcombe is really that fast, it will be generating power by the autumn and become a beacon for faster-moving community energy: historically, it takes on average about five years for energy co-ops to establish themselves and begin generating power.If REPOWERBalcombe is really that fast, it will be generating power by the autumn and become a beacon for faster-moving community energy: historically, it takes on average about five years for energy co-ops to establish themselves and begin generating power.
Hydro powerHydro power
This month, Whalley Hydro in Lancashire finally announced they had secured the funding to build a hydro plant on the River Calder. Energy co-ops struggle to acquire loans like conventional business start-ups but Whalley Hydro has been boosted by a £400,000 loan from Charity Bank, matching what it has raised from the 200 mostly local investors who have bought shares in the scheme. As well as raise funds, it has taken four years simply to sort out the paperwork and planning permissions for the scheme.This month, Whalley Hydro in Lancashire finally announced they had secured the funding to build a hydro plant on the River Calder. Energy co-ops struggle to acquire loans like conventional business start-ups but Whalley Hydro has been boosted by a £400,000 loan from Charity Bank, matching what it has raised from the 200 mostly local investors who have bought shares in the scheme. As well as raise funds, it has taken four years simply to sort out the paperwork and planning permissions for the scheme.
"We had hoped to do it in less than that but everybody told us that four years is what to expect," says Chris Gathercole, one of three directors. "It's a frustrating, drawn-out business – there's so many hoops you have to jump through with hydro." All the scheme's three directors are retired, and they've needed to be. "There are times when we've been virtually working full-time," says Gathercole. "Being retired makes it a bit easier. Officials working for organisations such as the Environment Agency don't want to meet at evenings or weekends.""We had hoped to do it in less than that but everybody told us that four years is what to expect," says Chris Gathercole, one of three directors. "It's a frustrating, drawn-out business – there's so many hoops you have to jump through with hydro." All the scheme's three directors are retired, and they've needed to be. "There are times when we've been virtually working full-time," says Gathercole. "Being retired makes it a bit easier. Officials working for organisations such as the Environment Agency don't want to meet at evenings or weekends."
The scheme is expected to start generating electricity in the autumn with an annual power output of 345,000 kWh, enough to power 100 homes. Whalley Hydro's investors stand to make 3–5% returns on their investment after three years, alongside a community benefit fund.The scheme is expected to start generating electricity in the autumn with an annual power output of 345,000 kWh, enough to power 100 homes. Whalley Hydro's investors stand to make 3–5% returns on their investment after three years, alongside a community benefit fund.
Big investors don't fund community energy schemes because they are too small-scale but back in Balcombe, Tom Parker has put his savings in other community schemes.Big investors don't fund community energy schemes because they are too small-scale but back in Balcombe, Tom Parker has put his savings in other community schemes.
He invested £2,000 into Way Valley Solar, got £600 back from the Inland Revenue as 30% tax relief and is now receiving a 6% annual return on his £2,000. After its third year, he begins to get his stake paid back. He has not yet seen a return from other more complicated schemes but is confident he will do so.He invested £2,000 into Way Valley Solar, got £600 back from the Inland Revenue as 30% tax relief and is now receiving a 6% annual return on his £2,000. After its third year, he begins to get his stake paid back. He has not yet seen a return from other more complicated schemes but is confident he will do so.
Feed-in fundFeed-in fund
The future of community energy depends on the government's feed-in tariff. All three major political parties are currently committed to it, and the tariffs at which people enter renewable schemes are guaranteed in law, thus protecting ordinary people's investments. If this tariff was significantly cut in the future, however, it would halt the co-op movement in its tracks. There is a finite government pot of renewable funding and Murray hopes that the increasingly popularity of community energy will force the government to continue funding renewables.The future of community energy depends on the government's feed-in tariff. All three major political parties are currently committed to it, and the tariffs at which people enter renewable schemes are guaranteed in law, thus protecting ordinary people's investments. If this tariff was significantly cut in the future, however, it would halt the co-op movement in its tracks. There is a finite government pot of renewable funding and Murray hopes that the increasingly popularity of community energy will force the government to continue funding renewables.
Critics argue that taxpayers are subsidising affluent Balcombe's co-op through the feed-in tariff but REPOWERBalcombe point out that every form of energy is subsidised. "All the money that would go to a great big company to pay a chief executive stays in the community," says Parker. "The benefits return to the shareholders. I don't see any catch."Critics argue that taxpayers are subsidising affluent Balcombe's co-op through the feed-in tariff but REPOWERBalcombe point out that every form of energy is subsidised. "All the money that would go to a great big company to pay a chief executive stays in the community," says Parker. "The benefits return to the shareholders. I don't see any catch."
Parker is confident the group can easily power Balcombe on solar alone but in the longer term there is potential for anaerobic digestion, biomass boilers and hydro. Joe Nixon stresses that wind is not an option for REPOWERBalcombe. "We're not going to suggest wind because wind can divide a community," he says. "We want to bring the community together with something positive."Parker is confident the group can easily power Balcombe on solar alone but in the longer term there is potential for anaerobic digestion, biomass boilers and hydro. Joe Nixon stresses that wind is not an option for REPOWERBalcombe. "We're not going to suggest wind because wind can divide a community," he says. "We want to bring the community together with something positive."
I finally find the catch in REPOWERBalcombe when I stroll down the main street. A group of local shoppers believe that community energy involves installing unsightly panels on everyone's houses.I finally find the catch in REPOWERBalcombe when I stroll down the main street. A group of local shoppers believe that community energy involves installing unsightly panels on everyone's houses.
"Everything's gone too green and eco friendly and it drives me up the wall," says one woman, "and as for windfarms – don't get me started.""Everything's gone too green and eco friendly and it drives me up the wall," says one woman, "and as for windfarms – don't get me started."
"You've got to invest so much money and the solar panels are so ugly," says another. "At my age, in my 70s, I'll never get it back in my lifetime and there's no point investing for someone else.""You've got to invest so much money and the solar panels are so ugly," says another. "At my age, in my 70s, I'll never get it back in my lifetime and there's no point investing for someone else."
"It's never going to pay off in this village," says third. "I believe they started it all in Germany and it went flat. I wouldn't get involved in it at all.""It's never going to pay off in this village," says third. "I believe they started it all in Germany and it went flat. I wouldn't get involved in it at all."
Fracking has so polarised Balcombe that some people may never be convinced but there are also plenty of people in the village who are still unaware of how REPOWERBalcombe will work. The group hopes community meetings will change that.Fracking has so polarised Balcombe that some people may never be convinced but there are also plenty of people in the village who are still unaware of how REPOWERBalcombe will work. The group hopes community meetings will change that.
"Their first mission is to repower the village. Their second is to unite the community behind their cause," says Murray. "The second is going to be harder than the first but it's not insurmountable.""Their first mission is to repower the village. Their second is to unite the community behind their cause," says Murray. "The second is going to be harder than the first but it's not insurmountable."
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