Next Gen innovation prog - Year 3 main report

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 1/122 - Evaluation of the Next Generation progra…

Evaluation of the Next Generation programme for Community Energy innovation

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 2/122 - About Power to Change

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 3/122 - Contents

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 4/122 - Glossary of abbreviations used in this r…

Glossary of abbreviations used in this report

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 5/122 - COVID CREW CSE DNO DSO ESC ESCO ERDF EU …

COVID CREW CSE DNO DSO ESC ESCO ERDF EU EV FCA FiTs GCEC GHG HCA LED

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 6/122 - LLS NDA PSDS PEC PV PV + EV RCEF RHI R&D…

LLS NDA PSDS PEC PV PV + EV RCEF RHI R&D TECC ToC UKPN WPD

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 7/122 - 1. Introduction

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 8/122 - the business model, can subsequently be …

the business model, can subsequently be used to finance socially beneficial activity, for example by providing a mechanism for addressing local issues and priorities. In most cases community energy businesses are locally rooted and accountable and offer significant opportunities for integration with other local initiatives (e.g. through the integration of energyfocused schemes within other forms of community regeneration initiative, such as affordable housing schemes). With the demise of grants and subsidy schemes such as the `Feed-in-Tariff1, community energy schemes needed to pursue different approaches to ensure their ongoing sustainability. New opportunities were thought to be available through the creative use of technologies to effect commercial linkages between community businesses and their customers. Other opportunities appeared to be offered by energy storage, demandmanagement technologies and crowd-funding mechanisms. The Next Generation innovation programme offered an opportunity to investigate and demonstrate how community energy businesses could identify and exploit these potential opportunities and thereby capture value for local communities.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 9/122 - 2. Overview of progress on the innovatio…

2. Overview of progress on the innovation programme

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 10/122 - Innovation group

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 11/122 - The Centre for Sustainable Energy (CSE) …

The Centre for Sustainable Energy (CSE) and a number of CSE-led consortium partners (e.g. Everoze, Co-operatives UK, Low Carbon Hub) delivered support to the 11 innovation projects. Each project liaised with a CSE support worker and was allocated a technical lead within the CSE-led consortium via a monthly or bi-monthly progress call. In addition to follow-up support actions agreed in these calls, a number of other activities were implemented by the CSE-led consortium during Year 3 of the programme:2

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 12/122 - Table 2: Status of innovation projects

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 13/122 - � In a few cases, the organisational cap…

� In a few cases, the organisational capacity of the CEB (e.g. FCA approval being more challenging for volunteer groups that cannot offer a 24 hour complaint/support service to their credit customers).

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 14/122 - � The business model being less innovati…

� The business model being less innovative (and hence less risky and complex than more `cutting edge business models).3

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 15/122 - The table below summarises our high-leve…

The table below summarises our high-level assessment of progress by each group against these four innovation journeys, as well as their overall level of innovation, the viability of their business model and progress on sharing learning with other CE groups. As Table 3 shows, most groups have made at least some progress on certain elements of the journey. The exception is Burneside CE: this group withdrew from the programme early in Year 3 owing to external factors. Although Burneside CE and some other projects made limited progress towards a `viable business model, they still generated significant learning for the wider sector, as explained in chapters 3 and 4. Generally, the more innovative models (e.g. community flex, microgrids for low carbon housing) generated more learning for the CE sector as a whole while less innovative models (e.g. those involving heat pump installation, LED lighting and EV chargepoints) delivered more direct impacts for their local communities. In interpreting Table 3, please note that the assessments are subjective and based on the evaluation teams review of available evidence together with discussion of the `four journeys model with project teams during Year 3 interviews. One point on the scale can make a significant difference: for example, level 3 on the commercial journey means that a project modelled costs and revenues while level 4 means that they ran a live pilot or trial. Level 5 on the organisational journey indicates a well-established volunteer-run group with other project activities, while level 6 indicates a group that has some paid staff. On the market/technology journey, reaching level 5 (rational economic purchase/market pull) is critical for viability but this is largely dependent on external market factors outside the groups control � and this type of viability is lowest for the most innovative projects. Similarly, on the regulatory journey, level 4 means that agreements and compliant approaches were put in place while level 6 means that lobbying has improved the regulatory or policy framework. The next chapter presents high-level findings on the seven innovation projects that were researched in detail by the evaluation team during Year 3. Further detail on the assessment of each project, and its progress on the `innovation journey is presented in Appendix 4.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 16/122 - Table 3: Summary of `innovation journey …

Table 3: Summary of `innovation journey travelled during Next Generation programme (blue text = current blockage)

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 17/122 - Nadder CE Plymouth EC

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 18/122 - 3. Findings on individual innovation pro…

3. Findings on individual innovation projects

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 19/122 - Case studies, videos, tools and other re…

Case studies, videos, tools and other resources created by all of the Next Generation projects can be found on the Next Generation resources page.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 20/122 - owned solar beyond the end of the Feed-i…

owned solar beyond the end of the Feed-in-Tariff, while also supporting low-carbon charging of EVs by members of the local community. BEC installed a total of 11 EV chargepoints (7 kw) at different locations during the Next Generation programme, across a range of their solar PV sites including workplaces (e.g. Brighton University, Shoreham Port), visitor attractions (e.g. Bolney Wine Estate, Amberley Museum) and residential estates (Parkgate).

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 21/122 - Initially, Carbon Co-op aimed to recruit…

Initially, Carbon Co-op aimed to recruit 1,000 users for the PowerShaper Monitor, seeing this as the commercial break-even point. However, the market has evolved and some commercial operators are now offering similar services for free. The Carbon Co-op now see the PowerShaper Monitor service as part of their overall offer to co-op members, with inclusion of this free service enhancing the benefits of joining. Carbon Co-op also envisages selling the service to other CE organisations, so that (for a fee) they can make it available to their own members. Carbon Co-op suggest that their PowerShaper Monitor will become financially self-sustaining within a year, potentially less. They also anticipate being able to generate income through the Impact Tracker and Building Performance Evaluation tool at some point in the near future.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 22/122 - for heat pumps from the market, although…

for heat pumps from the market, although the number of actual installations remains small. CREW have seen strong demand for their HCA offer with this being triggered by climate concerns, a desire to reduce costs, and regulation. This suggests that the delivery of this service, and retrofit support services, may offer a significant opportunity for CEBs.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 23/122 - Nadder CE

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 24/122 - community-led development might wish to …

community-led development might wish to meet higher energy and carbon standards, in practice the added complexity may mean that they prefer to default to a business as usual scenario. There are regulatory barriers to microgrid systems and heat networks (such as electricity licencing rules, restrictions on peer to peer trading, metering requirements for heat networks) and issues about the acceptability of ESCo arrangements to house purchasers and mortgage lenders. There is also a risk (at least in theory) of householders choosing to switch to an alternative energy provider.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 25/122 - Green Fox CE Green Fox CE used Next Gene…

Green Fox CE Green Fox CE used Next Generation funding to explore an ESCO model for zero carbon schools. With support from the Energy Systems Catapult and Loughborough University, they developed a financial model for pilot schools in Leicestershire, in partnership with Leicester City Council. As outlined in the Year 2 report, the full zero carbon schools model was not viable at that time but the `Base model was viable, premised on savings from tariff switching, energy efficiency measures and solar PV installation. At the time, there were issues around Department for Education (DfE) approval of solar PV on schools. These have now reportedly been resolved through partnership working between Community Energy England and DfE. But the availability of capital funding for energy work in schools via the Public Sector Decarbonisation Scheme (PSDS) suggests that the role of community energy groups is currently likely to be limited to advisory, educational or specific project work. While it is currently unlikely that this will justify the further development of the ESCo model for schools, the financial modelling work undertaken by Green Fox provides learning that may be useful to other CE groups.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 26/122 - 4. Evaluation of programme management an…

4. Evaluation of programme management and dissemination

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 27/122 - Figure 2: Level of Next Generation fundi…

Figure 2: Level of Next Generation funding received by participating CEBs

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 28/122 - � One project questioned whether the pro…

� One project questioned whether the programme had achieved as much as they could in getting groups of CE organisations to innovate and learn together. They felt it might have been useful to set up more conversations between groups doing similar things (e.g. ESCPs, EVs), rather than having generic internal webinar sessions. If circumstances had permitted, more face to face interactions would also have been valued.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 29/122 - � CSE presented resources for each proje…

� CSE presented resources for each project on the Next Generation microsite, including videos, case studies, final reports and templates/tools available to other groups.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 30/122 - 10,612 users and generated 27,858 page v…

10,612 users and generated 27,858 page views to 18 October 2021 (up from 8,651 and 19,858 to 2 August 2021).10

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 31/122 - 5. Summary of findings against Power to …

5. Summary of findings against Power to Change strategic outcomes, theory of change and systems map

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 32/122 - Table 4: Overall assessment of contribut…

Table 4: Overall assessment of contribution to Power to Change strategic outcomes

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 33/122 - More impactful and resilient community b…

More impactful and resilient community businesses

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 34/122 - A more diverse and inclusive sector

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 35/122 - Funding and support for community busine…

Funding and support for community businesses increases Summary: Strong evidence from several groups that reported using their learning and experience from their Next Generation project as the basis for successful funding bids from other funders.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 36/122 - Review of Theory of Change for the innov…

Review of Theory of Change for the innovation programme

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 37/122 - Figure 3: Theory of Change for innovatio…

Figure 3: Theory of Change for innovation programme 37

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 38/122 - Our summary assessment of the Theory of …

Our summary assessment of the Theory of Change is provided below, starting at the bottom of the diagram and working up.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 39/122 - the part of CEB groups, learning about e…

the part of CEB groups, learning about emerging business models, raised profile for CE groups and success in gaining follow-on funding11 for project activities.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 40/122 - Strategic target outcomes Progress

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 41/122 - Two further external factors that affect…

Two further external factors that affected outcomes for specific projects were the end of the Renewable Heat Incentive scheme (which affected proposed heat pump investments by CREW and GCEC) and difficulties in obtaining FCA approval for `pay as you save schemes for other community groups (particularly for small, volunteer-only CEBs such as Chester CE). Possible unintended consequences A positive consequence of the programme was that it developed the capacity and increased the profile of some CEBs participating in the programme. While some groups such as BWCE, Carbon Co-op and BEC were sufficiently well established to be well-networked and well known in the CE sector ahead of the Next Generation programme, others such as CREW, Nadder CE, GCEC and Green Fox CE reported that they developed their profile and networks through participation in the programme. And many groups, including some that were already well-established, reported that the programme had enabled them to develop knowledge and improve processes and procedures. In effect, Next Generations innovation programme has delivered `capacity building as well as innovation and testing of new business models.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 42/122 - Figure 4: Simple systems map for communi…

Figure 4: Simple systems map for community energy (revised)

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 43/122 - community engagement with the CEB becaus…

community engagement with the CEB because people can see that the organisation is directly benefiting the local community. Local service delivery also has potential to generate direct carbon, environmental and social benefits, in addition to those generated through investment of community benefit funds. For the innovation models in this programme there is still little evidence of the Next Generation business models making a significant contribution to health of community energy businesses (central green node) or the surpluses that they generate (orange nodes). While there may be a contribution from the four viable business models identified in this report, the contribution is likely to be modest as their viability currently appears marginal and dependent on a range of factors.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 44/122 - 6. Learning and recommendations

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 45/122 - The two `Amber business models are fairl…

The two `Amber business models are fairly complex. While they do not currently appear to be financially viable or sustainable, there may be circumstances where they can be supported by committed local communities (as is the case for Nadder CEs EV car club) that are willing to put in volunteer time and/or raise funds to support these activities. Changing circumstances may improve the viability of these models in future.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 46/122 - Learning points for policy makers, energ…

Learning points for policy makers, energy systems stakeholders and local authorities and other audiences

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 47/122 - � CEBs can play an important role in Loc…

� CEBs can play an important role in Local Area Energy Planning processes, helping to ensure that local people have a say in big decisions about their local energy system.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 48/122 - Key learning points for community-led gr…

Key learning points for community-led groups considering energy initiatives � Larger renewable electricity installations (e.g. solar PV installations of 50-100 kW) remain one of the most viable business models for CEBs, despite the end of FiTs.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 49/122 - � Given the uncertain nature of innovati…

� Given the uncertain nature of innovation project outcomes, flexible management of innovation programmes is important in maximising the chance of success.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 50/122 - Appendices

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 51/122 - b. inform Power to Changes future progra…

b. inform Power to Changes future programmes

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 52/122 - � How many assets and of what type are h…

� How many assets and of what type are held by communities? What benefits are these assets providing to their communities?

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 53/122 - Figure 1.1: Evaluation learning cycle

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 54/122 - � Online interviews with four external s…

� Online interviews with four external stakeholders (Community Energy England (CEE), the Department for Business Energy and Industrial Strategy (BEIS), Regen and one of the DNOs).

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 55/122 - Figure 1.2: `Four journeys scale for com…

Figure 1.2: `Four journeys scale for community energy innovation

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 56/122 - Limitations

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 57/122 - Appendix 2. How did the Next Generation …

Appendix 2. How did the Next Generation programme work?

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 58/122 - expenditure and were justified retrospec…

expenditure and were justified retrospectively by submission of receipts. The projects were held accountable for grant expenditure by CSE, with advice and support from the technical support lead for each project.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 59/122 - Appendix 3. Conditions for viability of …

Appendix 3. Conditions for viability of Next Generation business models

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 60/122 - Business model tested by Next Generation

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 61/122 - Business model tested by Next Generation

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 62/122 - Business model tested by Next Generation

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 63/122 - Business model tested by Next Generation

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 64/122 - Business model tested by Next Generation

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 65/122 - Business model tested by Next Generation

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 66/122 - Business model tested by Next Generation

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 67/122 - Appendix 4. Detailed assessment of activ…

Appendix 4. Detailed assessment of active projects during Year 3

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 68/122 - (a) Bath & West CEs `Flex Community Sche…

(a) Bath & West CEs `Flex Community Scheme

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 69/122 - quoted in the report show considerable f…

quoted in the report show considerable fall-off with each stage of engagement. The reasons for this are explained in the `process section below.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 70/122 - support for the project. The project als…

support for the project. The project also reported that the two project extensions, granted because of COVID, were really valuable in allowing additional data collection and simulation of flex offerings to DNOs and the Balancing Mechanism.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 71/122 - Has this Next Generation project helped …

Has this Next Generation project helped community business(es) to become more impactful and resilient?

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 72/122 - households would have been low (c. �25 p…

households would have been low (c. �25 per household per year, if energy bill savings were split evenly between BWCE, Stemy Energy and participating households). Some of these savings were attributable to optimisation of household equipment usage by the Stemy platform, in addition to flexibility revenues.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 73/122 - Interview evidence indicates that the Ne…

Interview evidence indicates that the Next Generation project provided a stepping-stone towards this.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 74/122 - BWCE is working with WPD and Stemy Energ…

BWCE is working with WPD and Stemy Energy to demonstrate further flexibility services and peer to peer energy trading with local households in a Constraint Management Zone.17

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 75/122 - The evaluation and BWCEs joint assessmen…

The evaluation and BWCEs joint assessment of the status of the business model is shown below. Progress has been made on the `market/technology journey since the Year 2 report, with this progressing from step 3 to step 4, as shown by the red ovals. The blue oval on the `commercial journey shows that the project is between step 3 and 4, having a mix of actual data (on costs and on household behaviour) and modelled data (on revenues). This oval is shown as blue because there is not currently a positive business proposition.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 76/122 - What advice should be given to other CEB…

What advice should be given to other CEBs considering this type of work? Key advice from BWCE to other CEBS considering work in this area is:

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 77/122 - A shift in regulations to facilitate pee…

A shift in regulations to facilitate peer to peer trading, which are included in the Local Electricity Bill, would also bring benefits for the flexibility business model. What are the next steps for the CE sector? BWCE would support some form of peer learning group or peer mentoring process for CEBs interested in progressing business models for offering flexibility services via a `community aggregator, subject to funding being available for this.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 78/122 - (b) Brighton Energy Co-ops `PV + EV sche…

(b) Brighton Energy Co-ops `PV + EV scheme

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 79/122 - Challenges Usage of the chargepoints was…

Challenges Usage of the chargepoints was lower than expected because of the impacts of COVID: the highest usage was seen at university workplace car parks and the lowest usage in residential or school locations where there are currently few EV users. BEC report that the most challenging aspects of the project were:

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 80/122 - � Frequently quoted reasons given by tho…

� Frequently quoted reasons given by those who had not yet made the change to an EV were lack of charging at home and not enough public chargers, in addition to the concern about the purchase price of EVs.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 81/122 - More impactful? Prior to this project, B…

More impactful? Prior to this project, BECs social impact mainly related to installation of FiTs-supported solar PV and distribution of surplus to support local climate action. This project enabled BEC to start new activities that were more user-focused.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 82/122 - More resilient? Next Generation funding …

More resilient? Next Generation funding enabled BEC to test and pilot the `PV + EV business model, which would have been too risky for them to have funded via a community share offer. The installation of EV chargepoints broadened BECs previous focus on installation of solar PV and hence made some contribution to the resilience of the organisation. Through this project, BEC has learnt where EV chargepoints are most likely to add to the viability and resilience of their solar PV investments.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 83/122 - Has this Next Generation project helped …

Has this Next Generation project helped community business(es) to address societys challenges? Some evidence � BEC was already addressing climate change issues prior to its engagement with the Next Generation project, through community-funded investment in solar PV arrays and through distribution of surplus profits to energy-related community initiatives. The Next Generation project was intended to improve the business case for additional solar PV arrays, by showing that EV chargepoints could generate additional revenues. In practice, the project found that the addition of EV chargepoints to a solar array investment may or may not improve the viability of a solar array, depending on the detailed characteristics of the site (e.g. construction cost, predicted usage, extent to which charging profile matches renewable energy generation profile and so on).

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 84/122 - access to public sector funding to fund …

access to public sector funding to fund installation of chargepoints, there are no incentives for local authorities to make links with CE groups.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 85/122 - What types of CEBs might this business m…

What types of CEBs might this business model work for? The `PV + EV business model is relatively straightforward for most CE groups, if they are investing in, or already have solar PV, in suitable locations (e.g. workplaces, visitor attractions, residential). It may also be viable for other renewable energy sources (e.g. wind).

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 86/122 - What are the next steps for the CE secto…

What are the next steps for the CE sector? The next step is to publicise BEC resources to the CE sector, to help other groups considering investment in EV chargepoints. BEC have suggested that this could include a `process flow diagram setting out the steps involved in installing EV chargepoints alongside renewable energy installations.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 87/122 - (c) Carbon Co-ops energy data co-op

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 88/122 - Review of progress in Year 3

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 89/122 - Powershaper Monitor and Building Perform…

Powershaper Monitor and Building Performance Evaluation services are being integrated into OpenEnEffs, an Innovate UK-funded Carbon Co-op project to develop a scalable and open evaluation approach for energy efficiency interventions based on the CalTRACK methodology. This project

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 90/122 - that, when exposed to wider challenge, w…

that, when exposed to wider challenge, was found not to be fit for purpose. As noted above, Carbon Co-op have used the experience they gained from working on the Next Generation project to inform a significant overhaul of their internal working arrangements.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 91/122 - projects impacts against Power to Change…

projects impacts against Power to Changes strategic aims. The strategic aims are listed in Appendix 1.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 92/122 - and organisations working on domestic en…

and organisations working on domestic energy efficiency, the project is making a contribution to helping to address an important issue and thereby is making a contribution to helping to deliver a more effective response to the challenge of climate change. Has this Next Generation project resulted in increased funding or support for community business(es)? Some evidence � the development of the building performance evaluation tools, whilst incomplete, is understood to have contributed to Carbon Co-op being successful in a bid to Innovate UK to support the OpenEnEffs project . Has this Next Generation project contributed to the growth of the Community Business Sector? No evidence � the project has developed a service, PowerShaper Monitor, which is expected to be used by other community businesses to support and enhance the attractiveness of their offer. This may help to improve the growth rates of community businesses, but we have no evidence to support this supposition.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 93/122 - Implications for CE sector

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 94/122 - What are the next steps for the CE secto…

What are the next steps for the CE sector? The Carbon Co-op are interested in hearing from any organisation that thinks that they might benefit from one or more of the services they have developed. The most mature of these, PowerShaper Monitor, could be useful to any organisation working in the domestic energy efficiency space that wants to be able to determine the impact of its work on householders.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 95/122 - (d) CREW Energys low carbon heat project

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 96/122 - � Partnered with Repowering to support b…

� Partnered with Repowering to support bids involving heat pumps for a school and civic centre.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 97/122 - Findings on project management processes…

Findings on project management processes CREW were highly appreciative of the support they received via the Next Generation programme. The funding was valued, but so was the flexibility of the programme as this allowed them to change tack when finding that an anticipated avenue was no longer open to them.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 98/122 - the energy thats needed to make a comfor…

the energy thats needed to make a comfortable space for young people to come in and to learn, to engage and be inspired. (project partner)

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 99/122 - because of the work that CREW are doing …

because of the work that CREW are doing with Repowering and others, i.e. replication has not yet been demonstrated, but there is evidence of early stage work. Since the last report, CREW have demonstrated that there is a demand for their offer and have therefore progressed along the market pathway. The legal and regulatory assessment reflects the fact that some aspects of work are able to be rolled out in the current regulatory environment: in the domestic market, the Boiler Support Scheme (BUS) provides a successor to the domestic RHI scheme. Indeed, the domestic HCA offer has been enabled by the introduction of regulations requiring landlords to improve the energy efficiency of their properties. However, the policy environment has become less supportive of communal heat pump installation, with the end of the non-domestic RHI scheme, and it is understood that CREW have made representations to BEIS on this matter.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 100/122 - In addition, they suggest that commercia…

In addition, they suggest that commercial domestic heat pump installations will see significant growth in numbers as a result of the entrance of some major utility companies into this space. CREW feel that whilst this may crowd out community businesses from the installation market, it will create new opportunities for CEBs to provide ancillary services, possibly via affiliate or other forms of partnership arrangement with the lead installer.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 101/122 - � Domestic early adopters who have alrea…

� Domestic early adopters who have already installed solar PV and/or operate an EV and who are able to pay for heat pump installation, with BUS support.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 102/122 - (e) Gloucestershire Community Energy Com…

(e) Gloucestershire Community Energy Companys low carbon homes work

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 103/122 - Factors contributing to success One inte…

Factors contributing to success One interviewee reflected that whilst the project had ultimately been unsuccessful they had come close to realising a project. They suggested that the project had been challenging and to get as far as they had required a significant amount of commitment from those involved.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 104/122 - and in attracting new recruits. It is al…

and in attracting new recruits. It is also better enabled the group to take on new and more ambitious, challenges and opportunities.

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Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 106/122 - As noted by CREW, further support for sm…

As noted by CREW, further support for small-scale communal heat pump projects (such as shared ground loop heat pumps) would be helpful, as the non-domestic RHI is no longer available. What are the next steps for the CE sector? GCEC feel that shared loop ground source heat pump systems are an effective and attractive technological solution for decarbonising housing. With rising electricity costs integrated solar PV, battery and heat pump solutions may become viable even without subsidy, but they will still require access to significant upfront capital and long repayment periods. GCEC feel that the community energy sector may be able to help groups of householders (e.g. groups of owner occupiers) by enabling access to community finance (e.g. share offers).

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 107/122 - (f) Nadder Community Energys EV car club

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 108/122 - Challenges NCEs final report identified …

Challenges NCEs final report identified multiple challenges:

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 109/122 - � Commercial competition is on its way i…

� Commercial competition is on its way in the form of carsharing platforms. These offer advantages, but there is a concern that it might not be accessible for all types of users and so would not address transport poverty.

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Has this Next Generation project helped to grow the understanding of, and support for, community businesses? Some evidence - The project, most notably in the form of the cars themselves, is highly visible and helping to raise awareness of the groups work and the possibilities of what can be pursued via a community business model. The initiative is, reportedly, viewed positively by the local community and this may translate into improved support for future projects.

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it will be sustainable in the medium term. In the longer term there will be a need to replace the vehicles and currently this could not be funded through surplus from the scheme. One reported issue is the reliance on volunteers: ideally the club would be supported by one or more paid staff, but this is not possible under the current operating model. Next Generation funding paid for temporary staff inputs during the project (as reported in the Year 2 report) but this is not currently sustainable.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 112/122 - � A need to ensure that prospective grou…

� A need to ensure that prospective groups understand the demographics of their potential users. NCE found that the profile of rural users is very different from that of urban car clubs.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 113/122 - To find out more

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 114/122 - (g) Plymouth Energy Communitys microgrid…

(g) Plymouth Energy Communitys microgrid for zero carbon homes

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 115/122 - Review of progress in Year 3

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 116/122 - comply fully with the laws and regulatio…

comply fully with the laws and regulation regarding to B2C relationships, even if they do not have a direct relationship with domestic customers.21

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Has this Next Generation project helped community business(es) to become more impactful and resilient? Some evidence - PEC are one of the UKs leading community energy businesses and one of the most innovative. Next Generation funding has enabled PEC to explore a proposition that offers significant benefits, but is complex and risky. The funding has improved PEC, and the community housing developers they partnered with, to develop a better understanding of the practicalities or developing a microgrid based, community owned ESCo. The business case remains unproven, but the funding has moved thinking on and may yet be an important enabler of future work. For example, by demonstrating the need for, and helping to inform the nature of, future pilots. The consultancy who developed the toolkit feel that projects of this nature are going to become a major opportunity area in the near future, and reportedly wish to maintain a relationship with PEC Homes and the Launceston project, and there is a shared intent to `update and improve the modelling tool.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 118/122 - Has this Next Generation project contrib…

Has this Next Generation project contributed to the growth of the Community Business Sector? No evidence � we found no evidence to suggest that the project has contributed to the growth of the community business sector but, as noted above, the project may provide a stepping stone to further work which, in turn, may help to unlock growth opportunities for the sector.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 119/122 - What types of CEBs might this business m…

What types of CEBs might this business model work for? The complexity of this sort of project means that it most suitable for larger, well established, groups with paid staff. It is important that the group have sustained access, ideally through both staff and board members, to the technical and financial competencies needed to steer a project from inception, through to successful completion, a process that can take up to 5 years.

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 120/122 - To find out more

Next Gen innovation prog - Year 3 main report - PtC format v3.pdf - page 121/122 - Appendix 5. Baseline Theory of Change fo…

Appendix 5. Baseline Theory of Change for innovation programme

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