The Local Energy Challenge Fund

The Local Energy Challenge Fund was launched in August 2014 to demonstrate the value and benefit of local low carbon energy economies. The fund is currently closed to applications.

The Local Energy Challenge Fund aims to support large-scale local low carbon demonstrator projects which show a local energy economy approach linking local energy generation to local energy use. This includes projects looking to develop innovative energy distribution and storage solutions that have an overall aim of creating more local value and benefit.

Projects which are funded through the Local Energy Challenge Fund should be able to demonstrate:

  • Partnership and collaborative working
  • Innovation
  • Added Local Value

The Challenge Fund operates over two phases. The first (the development phase) provides feasibility and development support for applicants developing project proposals. The second (the demonstration phase) provides capital funding to deliver projects. Only projects that are successful in obtaining development phase support can submit an application for the demonstration phase.

Since the Challenge Fund was launched on 18th August 2014 there have been two funding rounds. Round 1 awarded 17 projects with development and feasibility support, 5 of which are progressing with capital support, sharing in up to £20m of grant and loan funding. Round 2 was launched in March 2015 and awarded 23 projects with development and feasibility support. Capital funding for Round 2 is expected to be in the region of £500k to £6m per project.

Round 2 of the fund is being developed in partnership with the Low Carbon Infrastructure Transition Programme (LCITP). You can find out out more about the projects which the Challenge Fund has provided funding to below:-

Demonstration projects

Five projects received capital funding in 2015 -16

2015 development projects

23 projects received feasibility funding and development support in 2015-16

2014 development projects

17 projects received feasibility funding and development support in 2014 -15