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Point to note

If you are using this scheme to provide awards of subsidy, you must inform the Subsidy Control Unit – email scu@gov.wales

1. Region

All-Wales

2. Title of subsidy scheme

Community Energy Wales

3. Legal basis

Section 60(1) of the Government of Wales Act 2006 and Section 1 of the Welsh Development Agency Act 1975

4. Specific policy objectives of the scheme

The objective of the subsidy is to maintain a programme that provides tailored support to community groups to realise their ambitions for community energy regeneration. This supports wider objectives for Wales to generate renewable energy to at least fully meet our energy needs and use surplus generation to tackle the nature and climate emergencies. This will in part be delivered by accelerating actions to reduce energy demand and maximise local ownership retaining economic and social benefits in Wales.

The objective of this subsidy and delivery of CEW directly responds to Wales’s energy targets, adopted in 2023:

  • For Wales to meet the equivalent of 100% of its annual electricity consumption from renewable sources by 2035.
  • For at least 1.5 GW of renewable energy capacity to be locally owned by 2035, scaling up our original target for 1 GW by 2030.

The scheme is aligned with Future Wales, the national development framework, which sets the direction for development in Wales to 2040. It seeks to:

Facilitate the decarbonisation of the economy, including energy and transport choices, and promote the principles of a circular economy.

Welsh Government published policy statement of the 18 February 2020 sets out how increasing Welsh ownership of energy generation will increase prosperity in Wales. This policy statement outlines Welsh Government position to support the community energy sector, reflecting the lack of capacity, resources and support to develop projects unaided in a very competitive market.

Our support for community energy is designed to enable community groups to meet local energy needs from renewable resources and retain any benefits locally.

5. Purpose of the scheme

The subsidy is for Community Energy Wales (CEW) the organisation is a not-for-profit membership administration that supports and represents community energy (CE) projects in Wales. Ynni Teg (YT), the developer arm of the partnership, was established to provide direct practical support to project managers in the sector. YT also develops and operates its own projects to deliver revenues to fund future activities of both organisations. The subsidy will be for the financial year 2025-2026.

6. Public authority(ies) authorised to implement the scheme

Welsh Government

7. Category(ies) of eligible enterprise

Maintain a programme that provides tailored support to community groups to realise their ambitions for community energy regeneration. This supports wider objectives for Wales to generate renewable energy to at least fully meet our energy needs and use surplus generation to tackle the nature and climate emergencies. This will in part be delivered by accelerating actions to reduce energy demand and maximise local ownership retaining economic and social benefits in Wales.

8. Sector(s) to be supported

Electricity, gas, steam and air conditioning supply.

9. Duration of the scheme

01 April 2025 to 31 March 2028.

10. Budget for aid under the scheme

£1,300,000

11. Form of support

All subsidy awarded under the scheme will be awarded by way of grants.

12. Eligibility terms and conditions

Support will aid community groups to support wider objectives for community energy regeneration.

13. Basis for calculating subsidies

Support will be carefully targeted to ensure delivery of the subsidy objectives, and the funding agreement will include a range of key performance indicators (KPI’s), which will be used as a management tool to assess CEW’s performance.

14. Maximum subsidy allowable under the scheme

£99,000

15. Contact information

Subsidy Control Unit

Welsh Government
Cathays Park
Cardiff CF10 3NQ
United Kingdom

Telephone: + 44 (0)3000 604 400

Rydym yn croesawu galwadau a gohebiaeth yn Gymraeg / We welcome calls and correspondence in Welsh.

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