Regen was commissioned by ClimateXChange on behalf of the Scottish Government to explore how local and community-owned energy could help drive Scotland’s just transition. This report shares insights from the People's Panel conducted by Regen and Shared Future CIC as part of this project.
Regen delivered research for Scottish Government on the role of local and community energy for a just transition in Scotland. Our work highlighted that local and community energy has the potential to unlock significant social and economic value for communities and places. However, history has shown us that energy transitions, such as the current shift to more local and community-based approaches, tend to exacerbate social inequalities. Those who could most benefit are often excluded from participating because their perspectives and needs are not adequately addressed.
To make sure our recommendations to Scottish Government included insights from voices that are typically unheard, we convened a People's Panel on local and community energy. Twenty-two people from across Scotland took part, including from lower-income areas, people with disabilities, particularly those with mobility issues or additional energy needs in the home, people from ethnic minority and migrant backgrounds and those living in the private rented sector.
Local and community energy projects can create serious value for local places. Such projects allow for social and economic benefits from clean energy to be captured in local areas, with solutions tailored to local need and the Scottish Government’s draft Energy Strategy and Just Transition Plan emphasises their importance in supporting Scotland’s net zero and just transition ambitions.
Our report for ClimateXChange examines how those projects can help deliver against these ambitions within devolved Scottish powers. Through deep literature review, stakeholder engagement and working with citizens directly, it finds that local and community energy can deliver against all of Scotland’s critical just transition outcomes. At this level, there is scope to better involve excluded groups within the energy transition, support public and community ownership, and steward the benefits of net zero to citizens and communities directly.
Innovations such as smart local energy systems, community-led retrofit and local energy planning (LHEES in Scotland, but also the shift towards regional strategic and local energy planning) also present new opportunities to accelerate ownership, investment and delivery of local and community energy systems on a wider scale. This is in addition to the shared ownership opportunities from ever-expanding on- and offshore wind developments.
Scotland has long backed local and community-owned energy, with an aim to deliver 2GW by 2030 (currently at 908MW). However, key challenges remain to fully unlocking the potential of local and community energy for a just transition in Scotland. These include but are not limited to:
Over four evenings in May 2023, our panel helped us answer the question:
The way we use energy in our homes and communities is changing, with many communities and councils developing their own solutions. How should this be done so that it involves and benefits people in a fair way?
The panel heard from a range of experts about how the energy system is changing, and the different types of local and community energy solutions being developed. They then worked together to develop and deliberate 20 principles for ensuring that local and community energy policies involve and benefit people in a fair way.
The insights also fed into a report to Scottish Government, which made six high-level recommendations and 19 evidence-based recommendations for unlocking local and community energy in Scotland.
These principles set out that local and community energy must:
Provide clarity. For example, having clear definitions around how projects will work, agreements around roles and responsibilities, and transparency of budgets.
Set out goals and outcomes. Aims, success metrics, shared values and priorities should be established at the outset, and ensure that everyone benefits, with a fair distribution of benefits.
Enable equitable participation. This could be achieved through population-based awareness raising of community and local energy, engagement and promotion of projects and participation opportunities across the whole community, and routes for democratic governance structures.
Provide support and minimise risks. Support the community, for example in project engagement and delivery tasks, and help them manage and minimise risks to community members.
Support the local use of local energy. Enable energy generated locally to be used by the local community.
Enhance shared ownership. Support opportunities over the lifetime of the project and ensure companies don't make excessive profits at the expense of the community.
Be supported by government. Ensure government provides conclusive and resourcing support for community and local energy, as well as support and accountability for councils.
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