Community energy offers scope for major growth

21 September 2026

Community-owned renewable generation could increase more than fivefold by 2035, according to new modelling by energy consultancy Regen.

The analysis found that generation connected to National Grid Electricity Distribution’s network could rise from 265MW today to as much as 1.5GW.

That would mean more than 1.2GW of additional community-owned generation by 2035. The modelling covers the parts of England and Wales served by the network and does not represent the potential for the whole of the UK.

Regen examined different possible paths for the sector. If community energy continues to grow at roughly its recent rate, generation would reach 527MW by 2035. Under a scenario involving much greater community ownership, it could reach 1.5GW.

The report says the difference between the scenarios depends partly on whether communities can overcome barriers to developing and connecting new projects.

Grid capacity is one of the main constraints identified by Regen. The consultancy said a clearer definition of community energy could help enable changes to the way such projects are treated in the electricity connections process.

Finance is another issue. Regen said more predictable income from selling electricity could give community organisations greater certainty when deciding whether to invest in projects.

The modelling suggests more than 850MW of additional community-owned generation could seek connections to the network during the next electricity distribution price control period, which runs from 2028 to 2033.

Grace Millman, just transition and communities lead at Regen, says:

“Without urgent action, we are unlikely to be able to meaningfully scale up or bring these benefits to new communities. The role of Great British Energy will be crucial, injecting much-needed investment into the sector at pace and scale, but without government action, community energy organisations will face the same policy and regulatory barriers.”

David Witherspoon, community energy manager at National Grid Electricity Distribution:

“A transformational change is needed if the sector is to accelerate at the pace required to meet government ambitions.”

The modelling is the first time the Distribution Future Energy Scenarios methodology has been used to assess the potential future scale of community energy.