Feed-in-Tariff Removal in UK’s Community Energy: Analysis and Recommendations for Business Practices

Acharya, Abhijeet; Cave, Lisa A.

doi:10.5539/jsd.v13n4p1

Cited by 6 publications

(6 citation statements)

References 32 publications

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“…Four hundred (400) out of the approximately 3000 CECs across Europe are found in the UK. These groups, have seen their generation capacity grow by nearly 500% between late 2000s and 2017, generating 80% of their energy from solar, 18% from wind and less than 1% from hydro-electric within England, Wales, and Northern Ireland [39], mirroring the UK renewable capacity connected to the grid which increased by 500% from 2009 to 2020 [5], [40]. As more consumers take advantage of these opportunities and transition to prosumers, the availability of electricity for trading is increased and equally the prospects of P2P LEM.…”

Section: ) Government Incentives and Supportmentioning

confidence: 99%

Peer-to-Peer Local Energy Market: Opportunities, Barriers, Security, and Implementation Options

Jogunola,

Ajagun,

Tushar

et al. 2024

IEEE Access

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The concept of the peer-to-peer local energy market (P2P LEM) is no longer novel to the energy community. Yet, its large-scale implementation within the current electricity network remains a complex challenge. One key reason is the lack of understanding of the supplier licensing models in different countries. For instance, in the UK, up to year 2023, a consumer is only allowed to have a single supplier at a time under its single licence supplier model. This directly contradicts the existing P2P trading models that allow a consumer to purchase electricity from multiple sellers within the local market. Given this context, this article conducts a review of recent literature and government policies in different countries on the P2P LEM and identifies the barriers behind the lack of large-scale P2P trading implementation in today's electricity markets. We explain how these barriers can be overcome by engaging prosumers in traditional and private distribution networks through either licensed or license-exempt suppliers. Particularly, we discuss six P2P LEM frameworks that can be utilised to address the supplier licensing issue. Finally, this review presents a summary of risks, and recommendations to aid the regulatory framework to implement P2P LEM.INDEX TERMS Peer-to-peer local energy market, barriers, distribution networks, large scale implementation, policy, security.

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Section: ) Government Incentives and Supportmentioning

confidence: 99%

Peer-to-Peer Local Energy Market: Opportunities, Barriers, Security, and Implementation Options

Jogunola,

Ajagun,

Tushar

et al. 2024

IEEE Access

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“…The UK has followed a policy of constantly revising the payment rates of electricity generation from green sources without any prior notice [33,34]. These revisions might enable the sustainable targets to be reached without exceeding the budget, which is spared for sustainable targets [35,36].…”

Section: Evaluation Of Turkey's Green Energy Progression Among G20 Co...mentioning

confidence: 99%

A Comprehensive Analysis of Strategies, Challenges and Policies on Turkish Sustainable Energy Development

Dindar

2022

Journal of Engineering Technology and Applied Sciences

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Turkey's rapid population and economic growth have caused a significant increase in energy demand over the last two decades. As a result, a process of evaluating alternative energy strategies and policies was required to be formulated carefully along with the country's longer-term decarbonisation aims. Although Turkey's considerable renewable energy potential exists, its dependency on foreign energy and its dramatically depreciating currency have been the main drivers of revisions to these renewable energy-related policies. This paper aims to demonstrate and evaluate all the strategies and challenges of Turkey's green steps toward a sustainable future. Sustainable developments of many developed countries have been examined and compared to assess Turkish strategies and significant policies that have been taken. As findings, it has been revealed that policy revisions regarding the use of domestic technology in green power plants decelerate investments for a short time. However, it has been found that renewable energy patent applications have declined, although domestic technology in green energy plants has been promoted through these policy revisions. As a result of this dilemma, the quality and effectiveness of green research and development (R&D) in Turkey have been investigated and then benchmarked with most leading countries. It has been observed that there is no correlation and relation between the patent application and the articles on renewable energy. Therefore, the paper has provided insight into new policies and strategies to enhance the productivity of R&D for both Turkey and developing similar countries. Consequently, potential measures to increase Turkey's green energy use and production are discussed and proposed systematically, considering those findings.

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“…In the UK, civic bodies and councils primarily play the intermediary roles supporting community energy initiatives. Market-oriented and unfavorable UK policies have necessitated community-led energy initiatives to collaborate with intermediaries who are part of community energy business ecosystems (Acharya & Cave, 2020). As part of strategic niche management, intermediary organizations being part of the business ecosystem, empower niche actors to add value in the energy transition process (Bush et al, 2017).…”

Section: Role Of Intermediariesmentioning

confidence: 99%

“…Traditionally citizen-led initiatives in European countries have been based on the cooperative structure (Becker et al, 2017). However, due to (1) the high-interest rates of project funding, (2) entry barriers in the centralized energy market, and (3) withdrawal of FITs supports, CECs are required to collaborate with intermediaries within the business ecosystem to explore new opportunities (Acharya & Cave, 2020). Community energy groups, faced with upscaling resistance from the dominant energy regime, collaborate with local authorities and councils to forge new institutional arrangements (Smith et al, 2016).…”

Section: Commercial Venturing and Collaborationmentioning

confidence: 99%

“…Availability of low-interest financing is a concern in the UK's community energy sector; Community Energy England reported that in 2018, out of a total of 69 stalled projects, 15 projects stalled due to limited access to low-interest financing (Community Energy England, 2019). To overcome this challenge, CECs collaborate with intermediaries to explore low-interest finance models (Acharya & Cave, 2020). CECs are exploring non-traditional financing routes such as project funding through shorter-term community bonds; these routes have helped improve community group's access to finance (Community Energy England, 2018).…”

Section: Grassroots Innovations and Shared Knowledgementioning

confidence: 99%

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Analyzing Community Initiatives in UK’s Energy Transition through the Lens of Sustainable Entrepreneurship

Acharya¹,

Cave²

2020

EER

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The low-carbon energy transition framed as a social-technical system can enable researchers to gain insight into the complex interaction between niche actors and the dominant regime under the current energy policy landscape. This paper aims to analyze community-led energy initiatives through the lens of sustainable entrepreneurship and discern business practices that these niche actors use in the social-technical setting of the energy transition. Niche actors such as Community Energy Cooperatives (CECs) develop bottom-up solutions and overcome social-cognitive norms through citizen engagement. Especially in the UK, such community initiatives face resistance from the dominant regime due to the unfavorable policies and centralized institutional arrangements. The business practices based on sustainable entrepreneurship can enable community groups to create social, economic, and environmental values for the local communities. In our analysis, we observed that CECs exhibit traits of a sustainable entrepreneur in their efforts to support energy transition. We discerned following business practices based on sustainable entrepreneurship that CECs employ in the UK: (1) mission-driven and locally focused, (2) commercial venturing and collaboration, and (3) grassroots innovations and shared knowledge. In this paper, we observed a strong connection between the CEC business practices and sustainable entrepreneurship that provides a foundation for future academic interests. Further, we noted that intermediary organizations, as part of the business ecosystem, play a crucial role in supporting the UK’s community energy sector.

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Feed-in-Tariff Removal in UK’s Community Energy: Analysis and Recommendations for Business Practices

Cited by 6 publications

References 32 publications

Peer-to-Peer Local Energy Market: Opportunities, Barriers, Security, and Implementation Options

Peer-to-Peer Local Energy Market: Opportunities, Barriers, Security, and Implementation Options

A Comprehensive Analysis of Strategies, Challenges and Policies on Turkish Sustainable Energy Development

Analyzing Community Initiatives in UK’s Energy Transition through the Lens of Sustainable Entrepreneurship

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