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A Guide to the Rural Community Energy Fund (RCEF)

Learn about the RCEF stages, eligible activities, organizations, project sizes, technologies, application process, and case studies. Find out how to apply for grants to develop renewable energy projects benefitting the community.

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A Guide to the Rural Community Energy Fund (RCEF)

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  1. A Guide to the Rural Community Energy Fund (RCEF) September 2019

  2. Rural Community Energy Fun – Eligible Activities • Stage 1 Grant – up to a maximum of £40,000 for Feasibility Work • Stage 1 grants are intended to be used to secure the provision of professional services to undertake a feasibility study, funds can be used for: • Technical or planning consultancy fees • Project management costs • Community engagement activities • The grant is not for the purchase of capital equipment and cannot be used to cover costs incurred prior to the grant offer. • Stage 2 Grant – up to a maximum of £100,000 for Project Development • Stage 2 grants are to be used to support planning applications and develop a robust business case to attract further investment. RCEF Application Forms must be submitted to your relevant Local Energy Hub RCEF Contact point

  3. Rural Community Energy Fun – Eligible Organisations • In order to receive funds applicants must have formed a legal entity. Applicants must be planning a renewable energy project which provides a defined benefit to the community where the installation is based. For the purposes of RCEF, the Local Energy Hubs will accept applications from suitable legal entities, for example: • Community Benefit Societies/Cooperatives • Parish Councils • Registered Social Landlords • Charities • Development Trusts • Faith Groups • Local authorities are not eligible for RCEF however they can support or partner community groups who wish to apply. • The RCEF funds are for community groups and for the benefit of the community. • Applications for joint ventures can be accepted and reviewed on a case-by-case basis, but it is required that the community organisation are the key participants and own at least 50% of the project.

  4. Eligibility – Size of Project • The scale of projects eligible for funding will vary according to technology type. In general terms, projects should: • Require planning permission and significant pre-planning development • Generate energy for multiple buildings (or export the equivalent to the grid).

  5. Eligibility – Technology Applicants must be planning the installation of a renewable or low carbon energy facility. Below are example technologies which may be considered for RCEF: • Anaerobic digestion • AD (biogas) fuelled heat network • Bio liquids/gas/fuels • Biomass heat network • Heat pumps • Hydropower • Solar photovoltaic • Solar thermal • Wind turbines • Multi-technology approaches: Energy efficiency, storage, electric vehicle charging, grid services and demand management can also be considered in bundled approaches.

  6. Case Study – Electricity Generation Riding Sunbeams – overcoming grid constraints by connecting solar farms directly to the railway network – Stage 1 RCEF

  7. Case Study – Rural District Heat Networks Swaffham Prior Community Land Trust (Stage 1 RCEF) and Springbok Woodheat Cooperative.

  8. Swaffham Prior Heat Network Feasibility Study • 240 houses, schools and a few commercial buildings • Modelled on 180 houses • Explored options for: • Straw fired boilers • Ground source heat pumps • Carbon savings of 70 – 80% • Based on the current oil heating costs the investment could achieve a 6 – 7% return • Investment of £2.5 – £3 million

  9. Case Study – Community Wide Retrofits and Smart Grids Energies prong in Nottingham. Enabling whole house energy improvements including insulation, ASHP and solar PV through area based coordination. Electrification of Rural Heating study: “If ASHP is the sole focus only 41% rural homes can be electrified… based on 1 in 20 cold winter temperatures” (DeltaEE, Dec 18)

  10. Application Process • Register your interest via the RCEF website • www.gov.uk/guidance/rural-community-energy-fund • Complete the pre-application questionnaire. • Refine project plan with Energy Hub advisor/Energy Project Managers. • Submit application. • Applications reviewed by funding panel. • First funding approved September.

  11. Useful Documents • Committee on Climate Change – Net Zero Report: https://www.theccc.org.uk/publication/net-zero-theuks-contribution-to-stopping-global-warming/ • LEP Local Energy Strategies * 38 • Electrifying Rural Off-Gas Grid Heating: https://www.delta-ee.com/delta-ee-blog/addressingthe-rural-challenge-electrifying-off-gas-gridheating.html

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