Social housing co-operative 'to revolutionise energy production'

A new energy cooperative for the social housing sector could generate £20 million in revenue from renewable energy per year; generate 250 megawatts of electricity and save two million tonnes of carbon.

The Horizon Energy Cooperative is developing plans for a ‘microgrid’ – a locally generated and distributed power network.

Participating properties in the Greater Manchester region will host equipment for the generation of wind and solar power. Each property has the potential to generate up to £900 worth of renewable energy per year.

The resulting energy will be pooled, with some distributed locally and some sold on to the National Grid to generate funds for investment into local energy needs.

A heavily subsidised social tariff will be available to residents at risk of fuel poverty, a growing problem that now affects an estimated six million more homes than it did just two years ago. An estimated 60 per cent of UK social housing residents are at risk of fuel poverty.

Renewable energy generation also helps to address national energy supply and security concerns.

The first initiative of its kind in England, the Horizon Energy Cooperative is an innovative alliance between Manchester-based EIC Partnership and social housing management organisations, including Arms Length Management Organisations (ALMOs) and Registered Social Landlords (RSLs).

The Horizon Energy Cooperative is also working in partnership with Greater Manchester City Region to assist the delivery of the UK’s fourth Low Carbon Economic Area.

Both OFGEM and the Department of Energy and Climate Change have endorsed the energy cooperative and microgrid concepts.

EIC Partnership Managing Director Andrew Melchior said: “With a recent report from OFGEM predicting energy shortages and steep price rises that could leave many people unable to pay their bills, there is clearly a pressing need for creative thinking in the field of energy generation.

"We think the microgrid generation model has a major contribution to make, revolutionising energy production here in the birthplace of the Industrial Revolution.”

He added: “The Horizon Cooperative will be economically, environmentally and socially beneficial, generating revenue, cutting carbon emissions and promoting social inclusion.

"Our energy will be used to drive down the costs of electricity and hot water for those in need of relief from fuel poverty, whilst also supplying community-generated green energy to householders in the Northwest of England.”

Horizon is currently seeking funding and infrastructure partnerships with a range of organisations, including the European Regional Development Fund (ERDF). One prospective partner is the Cooperative Bank, who has provided the Horizon team with valuable advice based on their own experience of local cooperatives.

Following an initial three-year pilot, EIC will discuss a wider roll-out with government agencies.

Its ultimate aim is to begin operating as a ‘virtual utility’, explains Mr Melchior. “With sufficient support, there is no reason we shouldn’t end up producing energy output equivalent to one quarter of a conventional nuclear or coal-fired power station.”

He continued: “There is no more pressing need than to reduce the amount of oil, coal and gas that is consumed globally. Whether you are a believer or sceptic on the issue of global warming, our dependence as a species on finite fossil fuels for over 86 per cent of our energy generation is unsustainable.”