Having looked at the various barriers to community energy, explored an idea and with a possible technology aleady under consideration, a community will want to evaluate whether this project would be feasible on the ground.
In practice, its suitability will depend on a number of factors, including: the local topography, renewable energy resources such as local sustainable biomass/biogas resources, wind speeds, land space and water, economics, planning issues, community skills and the attractiveness of the benefits to the wider community.
Although consultants and/or MCS installer companies will advice on technical feasibility, the community has to consider whether a technology is broadly-speaking "feasible". The aim of a comprehensive feasibility study is to weigh up the benefits versus the barriers of a particular project. In the light of this, wider consideration of feasibility will address:
- suitability - Is this the right technology for this location – or is it just an idea which will cost too much, and deliver too little? Will it be a valuable local resource - even creating new benefits and jobs?
- community benefits - Will it benefit the community e.g. through cutting costs or enhancing local resources, building partnership, building skills, attracting new businesses and jobs to the local area?
- technical viability - Is it viable? Will it deliver enough energy and income?
- cost-effectiveness - Is it worth the high capital costs or is another less exciting technology actually more cost-effective?
- affordability - Can the community afford it? Can it pay loans back?
- amenity and landscape - Will it get planning permission? Will it seriously affect the amenity of others who use and enjoy the locality?
- deliverability - Will the local authority support it? Does the community have the skills necessary to deliver it?
- eligibility - Can the project access grants or loans?
- visual/noise impact issues - Are we/planners/wider community being realistic about these? Can these be balanced by benefits to the community? Can we minimise impact of these issues?
- environmental impact - Are there environmental measures/considerations to be taken into account?
- legal structure and risks - What are the risks to the community group and for the community?
Benefits to the Community
It is perfectly valid for a local host community group to meet with a commercial developer to discuss receiving a small percentage from the project, as the "host" community, to enhance local facilities. Equally, local community developers will think carefully about their own host community so that, where possible, wider benefits and opportunities can be identified and highlighted. One way of identifying hidden benefits to the community is to talk with other community groups who have already developed similar projects.
When raising community shares, it is useful to demonstrate that there will be other non- financial benefits from the project which will be shared. Contributing to a "community revolving fund" which may not just benefit a small group, could well make a project viable. "Community benefits" may include a sense of local achievement, or ownership, or an installation becoming a local tourist attraction (e.g. a restored mill with a craft centre) attracting visiors or businesses to the community, or, say, a school or rugby club supplying renewable heat to other public buildings bringing down costs for the whole community. The aim of the feasibility process is to develop a viable plan, which, where possible, creates a win-win outcome.
This PlanLoCaL’s video , “A Cautionary Tale” features the story of a community wind project both technically feasible and cost effective which proved impossible due to local opposition created by a community not being consulted early enough, before a planning application was submitted.
Community rotating funds and feasibility studies
Creating a "rotating fund" from the project, e.g. reinvesting profits into further low carbon transition, is a way of increasing its benefits. A consultant's feasibility study can also demonstrate that two, or more technologies, could complement each other and not only cut carbon but also contribute more to a rotating fund. One technology might be installed (e.g. by raising community shares, or private investment) to ‘kick-start’ an ongoing income stream from financial incentives to fund another more widely acceptable technology, to eventually replace it, at the end of its life cycle. In this case, the interim technology may be seen as a "means to an end". A community group that has undertaken a thorough, well-conducted study of all the possibilities will be well equipped to make a strong case to their community, as part of community engagement (e.g. at their first community "exhibition").
Finding consultants and/or MCS installer companies to undertake technical feasibility studies
- See information on feasibility on websites of relevant organisations on our "Links"
- See CEO page here outlinging the role of MCS installer companies (at microgeneration scale) on technical feasibility issues.
- As part of the Community Sustainable Energy Programme, there was a BRE list of approved consultants which is still accessible at the BRE Global website (former Building Research Establishment).
- The Centre for Sustainable Energy offers technical advice to community bodies as well as to local authorities:
- Personal recommendation is a way of identifying some experienced, competent consultants with a proven track record. Communities can engage with other communities which have put in place similar successful projects who may be able to advise about the likely costs of a consultant. See Case Studies for further information
- Communities can seek advice on consultants and their likely costs (and any availability for funding) from relevant organisations listed on “Links”.
Further videos and information
PlanLoCaL videos
PlanLoCaL exercises on feasibility for community groups
Further feasibility resources – local communities
- The Energy Saving Trust offers comprehensive guidelines on how to assess the feasibility of your project.
- If wind power is the technology you have chosen, Energy4All could help you through the process to building wind turbines.
- H2Ope (Waterpower Enterprises) is a social enterprise with a wealth of experience in establishing community owned hydro schemes.
- CEO’s funding page gives information on funding streams for projects (and some may be willing to fund feasibility studies).
- PlanLoCaL offers a toolkit on community engagement
- energyshare lists funders, some of whom may offer funding for feasibility studies
- The Sustainable Development Fund may offer feasibility funding, in relevant areas (national parks).