A new scheme which has the potential to revolutionise the way local communities generate and use energy has been awarded £90,000 from the Welsh Government to support the first UK trial.
Energy Local has enrolled the community of Bethesda to trial a revolutionary local energy market model, which allows renewable energy from the local 100kW hydro scheme on the Afon Berthen to receive a higher price for its generation when the local community use it. Energy Local is a not for profit social enterprise promoting local ownership of renewable energy.
The scheme has the potential to dramatically reduce energy bills for the community and reduce carbon emissions.
To date 100 households in Bethesda have been recruited to form an “Energy Local Club”. Each household will have a Smart Meter installed to show when electricity is being used as well as how much. Electricity will be cheaper if households use power when the hydro plant is generating or at off peak times, such as overnight and in the middle of the day.
Co-operative Energy, a partner in the project, will purchase the electricity from the hydro plant when it is generating more than the Energy Local Club members are using and supply the electricity to households when demand exceeds the local generation.
It is anticipated the project has the potential to save households up to 30% off their current energy bills. In turn the local energy generator will receive more for its energy than through current electricity export contracts. The community will continue to benefit from initiatives such as Warm Home Discounts where eligible.
The project is a first for the UK - it is estimated the trial will save up to £10,000 a year within the local economy, calculated from the total savings to the local customers and the local generator. If the pilot is successful it could be rolled out to areas across Wales, prioritising communities in areas of high fuel poverty.
The Cabinet Secretary for the Environment and Rural Affairs, Lesley Griffiths said:
“I am pleased to support this exciting trial in Bethesda, which demonstrates our commitment to developing renewable energy projects and helping households struggling to pay high energy bills.
“This project is empowering the local community to take control of its energy consumption and has the potential to lead a major change in the way energy is produced and used in Wales. I look forward to following the schemes progress and wish all involved the best of luck with the trial.”
The trial has secured approval from Ofgem and Elexon.
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