Community energy capacity in the Midlands

This report examines community energy capacity across six Midlands local authority areas and identifies both the significant opportunity and the key barriers to scaling community-led renewable energy. National initiatives such as the Local Power Plan create a strong opportunity for the Midlands to expand community ownership of clean energy, potentially attracting substantial investment while delivering local economic, social, and environmental benefits.

However, stakeholders highlighted a range of common challenges that are preventing projects from progressing from ambition to delivery, with the report recommending a coordinated regional approach to accelerate project development, strengthen local capacity, and create investable pipelines. Some examples of their challenges include:

• Fragmented leadership, coordination, and project pipelines are slowing delivery and preventing projects from reaching scale.
  Suggested solution: Establish a regional delivery framework, clear governance structures, defined project stage gates, and a coordinated pipeline managed by MNZH.
• Complex procurement, governance, and legal processes create delays, particularly within local authorities.
  Suggested solution: Develop standardised contracts, power purchase agreements (PPAs), leases, and clearer procurement routes to reduce complexity.
• Financial viability challenges have increased since the end of Feed-in Tariff support, leaving many projects unable to secure investment.
  Suggested solution: Adopt blended finance models, aggregate projects into larger portfolios, and provide development-stage funding support.
• Skills and capacity shortages within both community energy groups and local authorities limit delivery.
  Suggested solution: Invest in dedicated staff, training programmes, shared expertise, and regional support services.
• Urban and rural areas face different barriers and opportunities, making a one-size-fits-all approach ineffective.
  Suggested solution: Use tailored delivery models, with aggregated rooftop solar portfolios in urban areas and co-located, land-based generation and local supply models in rural areas.

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