Issue link: https://fhpublishing.uberflip.com/i/1181340
NETWORK / 12 / NOVEMBER 2019 COMMUNIT Y ENERGY present, including locations and pricing. This is a helpful step in helping community energy organisations understand ex- ibility markets. However, much more should be done. In certain places, DSOs are buying exibility services to help defer investment in net- work upgrades. This may well save customers money on their bills, but it does not establish any link with the things com- munity energy organisations are focused on, such as unlocking more generation projects or low- ering local electricity demand. Given that supplying ex- ibility services results in rela- tively low returns for community energy organisations, DSOs must clarify that there are other reasons why community energy organisations would engage, explaining how buying ex- ibility services in constrained areas will play a role in unlock- ing more capacity in the future, such as preparing the ground for peer to peer trading or smart local energy markets. New rules, new outcome Simply buying exibility ser- vices according to the existing rules will result in the same handful of companies delivering them, sti ing innovation and stymieing competition. A level playing eld is not much use if only a few players can reach it. By enabling community energy organisations to participate in exibility services, a new ap- proach to buying smarter solu- tions can be built, delivering a more democratic, decentralised and decarbonised system. More fundamentally, in a time of climate emergency, is it is time to rethink the "technol- ogy neutrality" principle that Ofgem holds so dear? It could prove hard to explain to the millions of people who witnessed and backed the recent "climate strikes" that we are buying exibility services from fossil fuel generators, when they could alternatively be provided by low carbon sources such as batteries co-located with renew- able generation. Powering the future: what the report says Community energy groups in the UK have used incentive schemes such as the Feed in Tariff to implement renewable energy projects and earn an income. The majority of community energy projects are either wind or solar PV generation. Since 2015, there have been new planning barriers to onshore wind projects in England and in April 2019, the Feed in Tariff, the primary source of support for community energy, was closed to new projects. These changes have radically altered the types of project community energy groups can develop and has forced them to explore a wider range of income streams, as reported in the most recent "State of the sector" report published by Community Energy England [the third report covered data up to the end of 2018] and the "Visions for the future of community energy in the UK" report published by the UK Energy Research Centre [July 2019]. Despite these major changes to the community energy sector, and a signifi cant reduction in new community energy groups forming, many existing community energy groups are exploring new business models and revenue streams to continue their journey towards local energy markets, such as battery storage and electric vehicle charging. Community energy groups have been exploring these new business models for some time. This is leading many groups to look at more marginal, and risky, revenue streams that must be stacked together to create a viable business model. With Distribution System Operators (DSOs) now actively purchasing fl exibility in specifi c geographic areas, there are now additional, albeit moderate, revenue streams that could potentially be accessed and added to '"the stack". The prices being paid for providing fl exibility to DSOs or the National Grid Electricity System Operator (ESO) are low, but when stacked with other sources of income could help make projects fi nancially viable. However, to engage with fl exibility markets, community energy groups will need support from DSOs and the National Grid ESO to make participation easier and potential revenue prices clearer. Extracted from "Power to participate, a speci - cation for community energy to participate in a exible energy system". LOCALISED ENERGY FUTURE OF FLEXIBILITY