Let’s Do Net Zero: Off Electricity Grid Communities Fund

In 2020, support from CARES enabled the following projects across our remote island communities.

• The Isle of Eigg increased its renewable generation and capacity by installing more solar panels and storage batteries. Funds will also be used to improve grid monitoring and for an electric heat demonstration project. This project is ongoing.
• Foula Electricity Trust completed an energy storage upgrade which optimises the integration of renewable energy to their grid.
• The remote community of Knoydart switched over to a new buried hydropower pipeline bringing secure, clean, green renewable energy back to the community. This was completed in November 2021. Additional civil and electrical works are still to take place.
• The Isle of Canna completed a decarbonisation strategy.

In previous years CARES support has also been provided to:

• Fair Isle Electricity Company to repair the Fair Isle Wind Turbines (this project is complete).
• The Isle of Rum to explore the viability for their existing hydro scheme through a CARES enablement grant (this project is ongoing).

The fund aims to enable off-grid communities to operate resilient local independent grids that are ready for net zero and able to support the future decarbonisation of heat and transport. CARES funding available through this call is to develop and deliver specific capital projects.

This fund is for communities which operate existing local independent grid* electricity systems. These may be located on the Scottish mainland or island communities, for example: Canna, Eigg, Rum, Muck, Fair Isle, Foula and Knoydart.

*independent local grid – an electricity network, separate to the National Grid (National Grid being the main electricity transmission and distribution network serving the UK).

A wide variety of community organisational structures are eligible for CARES support. Applicants must be constituted non-profit distributing community organisations, including organisations with charitable status, that are established and operating across a geographically defined community (‘local community organisations’).

Some common community organisation structures include:

• Scottish Charitable Incorporated Organisations (SCIO)
• Private Companies Limited by Guarantee (CLG)
• Community Benefit Societies (BenCom)
• Community Interest Companies (CIC).

There must be a minimum of three unrelated persons on the organisations’ management committee or Board that are local to the region served by the community building.

Community organisations will be incorporated, but unincorporated organisations can be considered.

The community organisations’ areas of benefit should be in Scotland.

All community organisations will be assessed for eligibility by Local Energy Scotland.

 

Development funding

• Development funding is available through to December 2023.
• Up to £25,000 grant funding is initially available per project.
• Up to 100% is available.

Development funding can be used for the following.

• Feasibility studies, design and consenting work, and project management support, required to enable you to take forward a capital project.
• Funding to applicants to provide client coordination support may be available but will be limited, rates will be reviewed, and the scope will require clear justification.
• During development consideration should be given to ongoing operation and maintenance strategy and how to plan for sufficient revenue for this.
• To support decarbonisation plans for heat, however funding through this call isn’t available for local energy plans and area-wide strategies. If you don’t have a strategy developed or a planned project you should contact Local Energy Scotland to consider other support that might be available.

In addition to grant funding, development loans are available for larger projects.

Technical advice for applicants may also be available through the CARES Technical Advice Services Framework.

Capital funding

• Capital funding is to be spent by March 2023. However, capital projects through to March 2024 will be considered subject to budget approval.
• Up to 90% grant funding is available.
• There is no upper limit of application amount, but applications will be subject to a competitive process.
• CARES grants are expected to form part of the project’s funding package; other funds such as reserves, loans, community shares, bonds etc can make up the balance.
• Projects will be assessed to provide value for money as well being able to demonstrate that they can build reserves for the sustainable ongoing operation, maintenance and develop of the energy system.

Capital funding can be used for the following.

• To develop zero carbon heat projects.
• To upgrade energy infrastructure, add controls and monitoring, and build resilience into existing local independent grids.
• To add energy storage and/or renewable energy generation to local independent grids to work towards greater decarbonisation of heat and transport through electrification.
• To add project management, through professional support, to provide the required capacity and expertise associated with all stages of the capital build process. This service can also be used to support projects meetings, act as a secretariat and coordinator, managing actions of all parties. Frameworks of projects managers are available through CARES.
• Funding to applicants to provide client coordination support may be available but will be limited, rates will be reviewed, and the scope will require clear justification.
• To secure profession advice including land agreements, legal fees and financial work.

There is no upper limit to the capital funding request, however the overall pot of money available for capital works is £3,000,000 for 2022-2023 and £4,000,000 for 2023-2024 (subject to budget approval). Therefore, CARES may only be able to provide part of your funding request.

• Support is available from Local Energy Scotland’s local development officers and specialists. This includes support with grant claims, managing grant conditions and providing a sounding board for projects.
• Support to get your project started from our technical consultants who can help with mobilisation, procurement and project review.
• Quarterly off grid working groups with participating projects to review project progress, celebrate success, capture learning, allow collaboration and share experiences. It may also be an opportunity to bring in specialist training if specific needs are identified.
• Our due diligence team will complete technical, legal and financial diligence to strengthen the project and review contractual robustness.

HIE has procured support for the off-grid consortium to review decarbonisation visions and identify priorities. Phase 1 will provide each off-grid community with individual action plans, which will confirm priorities and outline specific support requirements.

Where funding allows, phase 2 will recruit one or more specialist consultant(s) to further progress actions, identify detailed studies required, funding options/routes and timeframes to progress to the capital phase.

If your project is ready to progress, you do not need to wait on the outcome of phase 2.

CARES can help you to build on this with support and funding to take forward the capital phase of energy related actions. Local Energy Scotland are working closely with HIE to ensure that the results of HIE support feed into the development of the capital projects.

These are indicative guidelines on the roles that may support the project, which may vary from group to group.

Community co-ordinator:

• driving the project forward
• ensure monthly reports are provided to Local Energy Scotland
• submit claims to Local Energy Scotland
• liaise with the project manager and Local Energy Scotland
• support with wider funding applications linked to this project.

Project manager:

• overall management of the project
• support projects meetings, acting as a secretariat and managing actions
• track budget, milestones, activities and actions related to all parties.
• provide monthly reports to the community co-ordinator.
• maintain the project programme and risk register.

Local Energy Scotland development officers and specialists will provide advice and support in relation to:

• claiming CARES funding and funding requirements
• reporting required for CARES
• managing CARES funding conditions
• acting as a sounding board for the project with the ability to draw in other expertise where required
• supporting funding change requests, as required.

CARES supports communities to engage, participate and benefit in the energy transition to net zero.

CARES supports projects that:

1. accelerate the uptake of community and locally owned renewable energy, to meet Scotland’s 2030 2GW ambition
2. support community involvement in local energy systems that lead to new installations of locally owned renewable energy generation
3. support shared ownership projects (where a community group invests in a commercial renewable energy project)
4. assist communities to maximise the impact from community benefit funds through community consultation, action planning and good governance.

Local ownership and/or community involvement must be at the heart of the projects developed through CARES.

Energy efficiency must be part of any proposal and must consider all aspects of energy in the given situation.