Community Energy Catalyst Facility

The challenge

For the just transition to work for everyone, communities need to be active and willing participants. When communities have a genuine stake in local energy, citizens share the benefits of a more sustainable economy. Local and community energy schemes are one way to achieve this, with projects generating x12 times the local economic value of commercial energy. Such schemes have funded fuel poverty work, yielding a 9:1 social return on investment. However, community energy generates only 0.5% of the UK’s electricity.

Our approach

We have co-invested alongside Thrive Renewables to develop The Community Energy Catalyst. The initiative will support local communities to build their own clean energy infrastructure or secure stakes in larger regional renewable energy schemes. The joint venture will target larger scale, late-stage development projects that have already secured planning consent, enabling them to advance through to construction, commissioning and operation while aligning with local objectives.

The fund

The Community Energy Catalyst will make investments ranging from £0.5 million to £30 million in individual projects which are at least 1MW in size and employ proven technologies such as onshore and offshore wind, solar PV and hydroelectric.

The loan is serviced by the profits of the sustainable infrastructure, with operational outperformance allowing the community groups to channel higher operating profits towards accelerated debt repayments.