Energy co-op development - NCEL

Natalie Partridge

Research Associate

Natalie Partridge

Research Associate

Overview

This case study presents the learnings and experiences from setting up the Community Benefit Society, Northumberland Community Energy Limited (NCEL).

The timelines could be contracted across the North East Combined Authority region due to existing stakeholder engagement, draft legal agreements, processes in place, significant learnings, funding routes, and project management time funded. However, some elements, such as planning, legal agreements, etc., have a minimum time requirement.

All buildings will move at a different pace – some will be relatively straightforward, some will require investigation into landowner permission, require work on their roof, attract challenges in the planning process, etc.

The project can be viewed in phases, or by category: organisational, technical, regulatory, financial, and legal.

Download Full Development Scheme

Key learning points

  • Set objectives and parameters to manage the scope – e.g. owned and/or used by the community only (no schools, no private ownership, geographic boundaries).
  • Employ a project manager as soon as possible, with skills in stakeholder engagement.
  • Develop databases of suppliers – PV and battery installers, legal experts, financial experts, building surveyors, etc.
  • Keep regular communication with all stakeholders and manage expectations of timelines and challenges.
  • Budget more than anticipated for legal costs.
  • Working as a consortium, buildings may be able to benefit from group purchase of power, capital equipment, and professional services, as well as attract higher payments for surplus energy generated.

Phase 1: Planning and preparation (months 1 to 6)

Phase 1 outlines the key objectives and necessary steps for the community energy project, addressing regulatory, technical, financial, and legal considerations.

It includes gathering comprehensive data on the buildings and the broader community impact, alongside identifying PV suppliers and installers. This will help identify technical challenges that need to be addressed. Information will also be gathered on planning requirements, conservation areas, and public support.

The financial considerations cover roof survey costs, grant applications, initial technical surveys, legal fees, and a cost-benefit analysis of the initial buildings. Additionally, commercial and legal agreements related to renewable technologies will be examined.

Phase 1 NCEL

Phase 2: Project development (months 7 to 12)

Phase 2 focuses on assembling the leadership and delivery team, as well as securing in-principle agreements, such as building ownership. From a technical perspective, this phase entails managing necessary requirements, producing drawings and documentation, and preparing detailed proposals. This phase also includes coordinating grid connection and appointing a planning consultant.

Additionally, planning applications will be submitted to the relevant authorities, including those overseeing listed buildings. Funding applications and obtaining landlord consent or lease agreements as needed, also occur.

Phase 2 NCEL

Phase 3: Preparing for launch (months 13 to 18)

Phase 3 focuses on reviewing, agreeing, and signing legal agreements, followed by registering the organisations involved. It also includes assessing the planning decisions made during the project.

This phase documents all legal aspects of the project. Key actions include the G98 notification to the Distribution Network Operator (DNO), informing them of the installation and its potential for grid export. For installations up to 3.8 kW, automatic permission is granted, while installations exceeding this capacity will require a G99 application.

Phase 3 NCEL

Phase 4: Project delivery (months 19 to 24)

Phase 4 involves managing the installation process, overseeing financial transactions, and coordinating wider communications. From a technical standpoint, it focuses on the implementation, installation, and commissioning of sites to ensure a secure grid connection.

Additionally, this phase manages the flow of revenue and plans for potential expansion or redistribution of funds. A critical component of this phase is the G99 application and consent, which is required for exporting more than 3.8 kW to the grid. This is necessary for Feed-in Tariffs (FIT) and other incentives. However, there is currently a backlog in the approval of G99 applications.

Download Full Development Scheme
Phase 4 NCEL

To find out more

Please contact NCEL at:

Fiona Knox, NCEL project officer: fionaknox@ca-north.org.uk  

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