REA encourages industry and communities to get ready for shared ownership

Draft proposals have been made by the Shared Ownership Taskforce, a group of Government experts who are focusing on renewable energy project developments. The proposals will give communities an opportunity to invest in new renewable energy projects.

The Task Force includes representatives of the REA and the Solar Trade Association.

The Government has said that from 2020, they want it to “be the norm for communities to be offered the opportunity for some level of ownership of new, commercially developed onshore renewable projects.” As such the Taskforce are looking into shared ownership opportunities for communities without unduly impacting on the cost to the developer.

The ownership options include:

1. Split ownership. This would involve a community enterprise buying a proportion of the projects physical assets.

2. Shared revenue. This would involve a community enterprise purchasing the right to a future revenue stream which would be calculating according to output, less operating costs.

3. Joint venture. This would involve a commercial operator and a commercial enterprise creating a joint venture to own and manage the project.

REA Chief Executive Dr Nina Skorupska said:

“Shared ownership of renewable energy projects is beginning to take shape. We are working hard to ensure shared ownership is mutually beneficial for developers and communities.” “Renewable energy helps reduce the twin risks of climate change and energy dependence. Shared ownership enables local people to do their bit for sustainable energy while generating tangible social and financial benefits for themselves and their neighbours.” REA Community Engagement Adviser Gaynor Hartnell said:

“I would like to see this report used by community groups as well as project developers. Communities should see renewables as an opportunity and mobilise themselves so that they can respond effectively to developers’ proposals. They could even proactively invite developers to consider their area – just as Morecambe Bay Community Renewables is doing.” “Shared ownership will not be what every community wants. It’s important that if communities seek other forms of involvement, it should be seen as just as valid. Above all, community engagement must be done sensitively and done well.” The Shared Ownership Taskforce is currently seeking feedback and comments on the proposals. These are welcomed from project developers, community groups and other interested parties.