Ofgem Energy Redress Scheme distributes £2.3 million to support community renewable energy projects
Funds from the first round of the Just Transition Fund will be distributed to thirteen organisations across England, Scotland and Wales through the Ofgem Energy Industry Voluntary Redress Scheme (Energy Redress Scheme)
The Ofgem Energy Industry Voluntary Redress Scheme (Energy Redress Scheme) has announced how the latest round of funding is being awarded. A total of £2.3 million in grants is being distributed to thirteen organisations across England, Scotland and Wales, to support the development of community renewable energy projects. These projects aim to benefit vulnerable residents by reducing energy bills and promoting carbon reduction initiatives.
The fund will also build the capacity of the community energy sector to deliver impactful renewable energy projects and demonstrate how a just transition to net zero can benefit everyone.
Wales based developer of community-owned clean energy infrastructure, YnNi Teg, will receive £247,003 in funding for its Bangala Community Power Plant. The project aims to enable urban communities to be part of a community-owned ‘virtual power plant’, generating, storing and controlling their own renewable power. This initiative will directly reduce energy costs and carbon emissions for approximately 300 households.
Jonathan Townend, Executive Director at YnNi Teg, said:
“The funding will enable us to develop ambitious plans for a community-owned ‘virtual power plant’, integrating the operation of solar PV and battery storage installations across hundreds of households for optimum shared benefit.
Jonathan Townend, Executive Director at YnNi Teg
“As well as helping vulnerable households reduce their bills, the project aims to create a replicable and scalable model for communities to participate in a sustainable transition to Net Zero.”
Community Energy Scotland will receive £185,750 to support their Cowal Peninsula Community Wind Pioneers project. The project will explore the best routes to community ownership, ensuring that local people can benefit from a long term, sustainable income from local natural resources.
Darragh Keenaghan, Project Manager at Community Energy Scotland, said:
“This funding allows us to provide support and expertise to Cowal’s communities to harness the potential of community-owned renewable energy. By mapping out viable options, including repowering, shared ownership, and new community-led projects, we hope to create a long-term income stream that will help tackle fuel poverty and support just transition initiatives.
Darragh Keenaghan, Project Manager at Community Energy Scotland
“This project is about local people having a real say in their energy future and ensuring the benefits of renewables stay within the community.”
Southern Staffordshire Community Energy will also receive £52,280 in funding for their Solar for Social Impact Expansion project. This initiative will scale the portfolio of fourteen sites across five NHS Trusts and Primary Care Networks. Additionally, the project aims to generate funding for fuel poverty initiatives through solar energy sales, enabling a proactive model that benefits patients and shifts from reactive to preventive care.
Neil O’Brien, Chair of Staffordshire Community Energy (SCE) said:
“This is vital funding to enable us to complete the development work on a range of solar PV projects, which we plan to install on the roofs of several hospitals and other NHS buildings. This will help NHS bodies save on electricity bills and reduce their carbon emissions.
Neil O’Brien, Chair of Staffordshire Community Energy (SCE)
“Crucially, this project will also allow SCE to provide up to £2 million to the local charity, Beat the Cold, over the next 25 years. This funding will offer advice and support to NHS patients in fuel poverty, reducing demand on hospital services during critical winter periods.”
Since 2018, the Energy Redress Scheme has supported 660 projects in England, Scotland and Wales. The funding is collected through Ofgem’s enforcement and compliance activities, where companies that have breached energy rules agree to make a voluntary payment into the Energy Redress Scheme. Energy Saving Trust manages the allocation of payments for the scheme
Graham Ayling, senior project manager at Energy Saving Trust, said:
“This funding will support the development of community-owned renewable energy at a crucial time, enabling such projects to play a larger role in the transition to a net zero energy system.
Graham Ayling, senior project manager at Energy Saving Trust
“These projects demonstrate how a future energy system can be fairer through greater citizen ownership, where residents see direct benefits. We’re pleased to be able to work towards this by recycling the profits from energy generation to help people struggling to heat and power their homes.”
Cathryn Scott, Regulatory Director of Market Oversight and Enforcement at Ofgem, said:
“As the energy regulator, we are committed to protecting consumers while helping pave the way towards net zero, and the Energy Redress fund is key to this. With another £2million from the fund going to community energy projects across England, Scotland, and Wales, it’s rewarding to see our compliance and enforcement efforts paying off.
Cathryn Scott, Regulatory Director of Market Oversight and Enforcement at Ofgem,
“Community-led projects like those receiving funds ensure that local people benefit from the development of community renewable energy projects, which will ultimately help reduce bills and further our progress towards net zero.”
Read more about all the funded projects here.