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Report Title: Developinganethicalframeworkforlocalenergyapproaches

Author(s): SaskyaHugginsOrganisation(s): LowCarbonHub

Version: 1.1_ext Date: 11/18/20

Workpack*: WP3 Deliverable:

Reviewed by: Barbara Hammond

Date: July 2020

Signed off by: Programme Delivery Board

Date: November 2020

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Context TheUKGovernmenthaslegislatedtoreduceitscarbonemissionstonetzeroby2050.Meetingthistargetwillrequiresignificantdecarbonisationandplaceanincreaseddemandupontheelectricitynetwork.Traditionallyanincreaseindemandonthenetworkwouldrequirenetworkreinforcement.However,technologyandtheabilitytobalancedemandonthesystematdifferentperiodsprovidesopportunitiesfornewmarketstobecreated,andnewdemandtobeaccommodatedthroughasmarter,secure,andmoreflexiblenetwork.

Thisfutureenergymarketofferstheopportunitytocreateadecentralisedenergysystem,supportinglocalrenewableenergysources,andnewmarketsthateveryonecanbenefitfromthroughprovidingflexibilityservices.Toaccommodatethischange,DistributionNetworkOperators(DNOs)arechangingtobecomeDistributionSystemOperators(DSOs).ProjectLocalEnergyOxfordshire(LEO)isanimportantstepinunderstandinghowsuchnewmarketscanworkandinimprovingcustomerengagementinthem.ProjectLEOispartfundedviatheIndustrialStrategyChallengeFund(ISCF)whosetupafundof£102.5min2018forUKindustryandresearchtodevelopsystemsthatcansupporttheglobalmovetorenewableenergy,called:ProsperingFromtheEnergyRevolution(PFER).

ProjectLEOisoneofthemostambitious,wide-ranging,innovative,andholisticsmartgridtrialseverconductedintheUK.LEOwillimproveourunderstandingofhowopportunitiescanbemaximisedandunlockedfromthetransitiontoasmarter,flexibleelectricitysystemandhowhouseholds,businesses,andcommunitiescanrealisethebenefits.Theincreaseinsmall-scalerenewablesandlowcarbontechnologiesiscreatingopportunitiesforconsumerstogenerateandsellelectricity,storeelectricityusingbatteries,andevenforelectricvehicles(EVs)toalleviatedemandontheelectricitysystem.

ProjectLEOseekstocreateconditionsthatreplicatetheelectricitysystemofthefuturetobetterunderstandtheserelationshipsandgrowanevidencebasethatcaninformhowwemanagethetransitiontoasmarterelectricitysystem.ItwillinformhowDSOsfunctioninthefuture,showhowmarketscanbeunlockedandsupported,createnewinvestmentmodelsforcommunityengagement,andsupportthedevelopmentofaskilledcommunitypositionedtothriveandbenefitfromasmarter,responsive,andflexibleelectricitynetwork.ProjectLEObringstogetheranexceptionalgroupofstakeholdersaspartnerstodeliveracommongoalofcreatingasustainablelocalenergysystem.Thispartnershiprepresentstheentireenergyvaluechaininacompactandfocusedconsortium.ItisfurtherenhancedbygloballeadingenergysystemsresearchbroughtbytheUniversityofOxfordandOxfordBrookesUniversity,consolidatingmultipledatasourcesandanalysistoolstodeliveramodelforfuturelocalenergysystemmappingacrossallenergyvectors.

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Table of contents1 Introduction and purpose 4

2 Equity in a local energy context 7

3 Principles 11

4 Smart and Fair Neighbourhood trials 13

5 Smart and Fair Neighbourhood trials design stages 15

6 Developing an ethical toolkit 18

7 Appendix: Definition of local energy 19

AcknowledgementsTheLowCarbonHubwouldliketothankthefollowingfortheirhelpindevelopingtheethicalframework:

- OurProjectLEOPartners,withspecialthankstoDrSarahDarbyandDrNickBanks,EnvironmentalChangeInstitute,UniversityofOxford,andRuthHarris,OxfordCityCouncil

- DrRoseChard,EdmundHunt,andDrMatthewBlackmurfromtheEnergySystemCatapult- TheCentreforSustainableEnergy(CSE)- OurSmartandFairNeighbourhoodcommunities- Thewiderlowcarboncommunityofgroupsandorganisationswhoareworkingfora

transitiontoazerocarbonenergysystem.

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1 Introduction and purpose

ProjectLEOaimstotransformthetechnologyandmarketsthatunderpinOxfordshire’senergysystem,andsodemonstrateit’spossibletomeetourenergyneedsinawaythat’sgoodforpeopleandgoodfortheplanet.ProjectLEOispredicatedonthehypothesisthatadecentralised,orlocalenergysolution,focusedonbalancingenergyuseatthegridedge,willbethemostdesirableapproachtoacceleratingourtransitiontoazerocarbonenergysystem.AttheheartofProjectLEOisScottishandSouthernElectricityNetworks’(SSEN)transitionfromDistributionNetworkOperator(DNO)toDistributionSystemOperator(DSO)which‘willenablecustomerstobebothproducersandconsumers’whereakeyoperationalprinciplewillbe‘enablingcustomeraccesstonetworksandmarkets’andwheretheDSOwill‘usemarketmechanismsthatarefair,transparentandcompetitive.’1Soachievingenergyequityisbothakeyaim,andakeydriver,ofthetransitiontoalocalenergysystem.Asaresult,enhancingourunderstandingofwhatconstitutesequityinanenergycontext,andhowtoachieveit,iskeytothesuccessfuldeliveryofProjectLEO,andourSmartandFairNeighbourhood(SFN)trialsaimtodojustthat.Thetwo-yeartrialswillinvolvethesettingupandtestingoflocal,lowcarbonenergytrialsthatusemarketmechanismsandsmarttechnologytobringvaluetotheelectricitynetworkandthepeopleconnectedtoit,workingwithlocalenergycommunities.Aswellastestingtechnicalandfinancialinnovation,ourSFNtrialsgiveustheopportunitytoexplorethesocialinnovationthatcanleadtothedevelopmentofaportfolioofsuccessfulserviceofferings,andbetterunderstandtheprocessesbywhichappropriateofferingscanbedeployedtomeettheneedsofindividualcommunitiesaswellasthewidernetwork.Ourultimateaimistoidentifyserviceofferingsthataretechnically,financially,andsociallyviable,asthesewillbecrucialifgridedgeengagementisgoingtobecomeself-sustaining.However,itmaybethatsomeoralloftheapproachesthatwetestwillonlybecomeviableinthe'realworld'ifkeychangesaremadetothewaytheenergysystemoperates.Akeyelementofthesetrialswillbetohighlightwhatchangeswouldneedtobemadewithintheenergysystem,andbywhom–atalegal,regulatory,policy,market,social,ortechnicallevel–inorderforanewbusinessmodeltobecomeviable.NoneofthisworkwouldbepossiblewithoutthecollaborationandsupportofthemanycommunitiestakingpartinourSFNtrials.Thankyouforworkingwithustohelpcreateasmartandfairlocalenergysystemforthebenefitofall.

1Quotationsfromsection1.8,Appendix1oftheoriginalProjectLEObid.

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Purpose Thisdocumentisastagingpostinathree-yearprocesstodevelopandtestaframeworktosupporttheethicaldeliveryoflocalenergytrialsandthedesignofequitablelocalenergyofferings.TheethicalframeworkwillprovideasetoftoolsandprocessesthatcanbeusedalongsideothersbeingdevelopedaspartofProjectLEO:- ThetechnicalframeworkunderdevelopmentintheMinimumViableSystem(MVS)trialsto

guidethedevelopmentanddeliveryofSFNtrials- TheenergymappingworkbeingdoneinworkpackageWP4- ThedataandcommunicationsprotocolsbeingdevelopedthroughtheWP2market

developmentworkandthePeople’sPowerStation2.0- TheStakeholderEngagementStrategydevelopedinWP6.- ThetransitionfromDNOtoDSOaspartofWP5Throughthisprocesswewillalsogatherevidenceontheinteractionsbetweenthecurrentgovernanceandoperationofthebroaderenergysystemandproposednewlocalenergyservices.Wewillassesshowtheyimpactontheabilityforlocalenergyservicestothriveandmeettheenergyneedsofpeopleinanequitablemannerwithaviewtomakingproposalsforfuturechanges.

ApproachOurapproachwillbeoneoflearningbydoing.Thedevelopmentoftheprinciples,framework,andsupportingprocessesandtoolswillbeiterative,withlearningfromtheexperiencesofeachSFNtrialbeingregularlyreviewedandfedbackintothedesignoftheseprinciples.OurapproachtodeliverywillbeguidedbytheLowCarbonHub’ssocialpurposeandvalues(Box1).TheSFNtrialswillenableustodemonstrate‘realworld’practicalevidenceforlowcarbonsolutionsinthenewsmartflexibleenergymarketsofthefuture.Weanticipatewewilllearnasmuchfromwhatdoesnotwork,asfromwhatgoeswell.

Box1:TheLowCarbonHub’ssocialpurposeandvaluesOurapproachAgile;pragmatic;practical;innovative;creative;transparent;non-proprietorial;convenors;preparedtotryandfail;holisticsolutions:viable,feasibleanddesirable.OurprinciplesCommunityfocused;inclusive;collaborative.OurimpactMaximisesleverage;tangible;visible;lasting;replicableandscalable.WhatmakesusdifferentCommunityrooted;peoplefocused;motivatedbyequityaboveprofit;on-the-groundpractical

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Inthecontextofthisethicalframework,theSFNtrialsareoperatingatthreedifferentlevels:1. Thedevelopmentoftheprinciplesthemselves2. Thedevelopmentandrefinementofthetoolsandprocessestotranslatetheseprinciples

intopracticeindifferentneighbourhoodsandflexibilityservices3. Thedesignandtestingofarangeofequitableserviceofferingsthemselves.

Eachstrandwillneeditsownmonitoring,evaluation,andlearningloops.

OutputByJune2022weaimtodeliverthefollowingoutputs:

- Principlesforethicallocalenergytrialdelivery- Principlesforequitablelocalserviceofferingdesign- Anethicallocalenergytoolkit,withtemplates,processes,andtechniquestotranslatethe

principlesintobestpractice- AreportidentifyingthelearningfromtheSFNtrialsandimplicationstheyhighlightregarding

thewaythewiderenergysystemimpactsonthedeliveryofequitablelocalenergyservices.

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2 Equity in a local energy context

Theenergysystemischanging–andneedstochangefast.Decarbonisation,decentralisation,digitalisationarealldisruptingthewayourenergysystemworks,andaregoingtofundamentallychangethewayweinteractwithenergy.Ourenergysystemismuchmorethanthewiresandswitchesthatmakeupitsphysicalinfrastructure.Itisalsoasocialsystem,developedbypeopleforpeople.Aswetransitiontoazerocarbonenergysystem,thechangesrequiredwillbeasmuchaboutpeopleandthewaytheyinteractwithitasitisabouttechnology.

Why choose a local energy approach to decarbonisation?In2018NationalGridsetoutfourpossiblepathwaysfortheUK’senergysystem,dependingonthelevelofdecarbonisationitwouldachieve,andthespeedatwhichitwouldachieveit.

Scenariomatrixfor2018:©NationalGridplc,allrightsreserved.

OnlytwoofthesescenarioswouldmeettheUK’s2050goalsforcarbonreduction,accordingtotheNationalGrid:TwoDegreesandCommunityRenewables.

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TwoDegrees CommunityRenewablesLarge-scalecentralisedsolutions DecentralisedpathwayLarge-scalesolutionsaredeliveredandconsumersaresupportedtochoosealternativeheatandtransportoptionstomeetthe2050target.

UKhomesandbusinessestransitiontohydrogenandelectrictechnologiesforheat.Consumerschooseelectricpersonalvehiclesandhydrogeniswidelyusedforcommercialtransport

Increasingrenewablecapacity,improvingenergyefficiencyandacceleratingnewtechnologiessuchascarboncapture.Usageandstoragearepolicypriorities.

Localenergyschemesflourish,consumersareengagedandimprovingenergyefficiencyisapriority.

UKhomesandbusinessestransitiontomostlyelectricheat.

Policysupportsonshoregenerationandstoragetechnologydevelopment,bringinnewschemeswhichprovideaplatformforothergreenenergyinnovationtomeetlocalneeds.

ProjectLEOispredicatedonthehypothesisthatthecommunityrenewablespath,withadecentralised,localenergyapproach,focusedonbalancingenergyuseatthegridedge,willbethemostdesirablepathwaytoacceleratingourtransitiontoazerocarbonenergysystem.Thisisbecauseit:

- Minimisestheneedtomassivelystrengthenthenetworkinfrastructure- Offersthepotentialforamorediverserangeofsolutions- Ismorelikelytoresultinimprovedenergyequity.

Authornote:inafutureversionofthisdocumentwewillexplorethemorerecentFutureEnergyScenarios2020developedbyNationalGrid,leadingtoa100%reductionincarbonemissionsbytheenergysystem,aswellasthebroaderbenefitsofadecentralisedapproachintermsofengagementoncarbonreductionstrategiesbeyondtheenergysystem.

What do we mean by energy equity? TheWorldEnergyCouncil(WEC)setsoutthechallengetoachievingasuccessfulenergytransitionasonewhichmeetsthe‘energytrilemma’–inthatitsuccessfullymeetsthreecoredimensions:energysecurity,energyequity,andtheenvironmentalsustainabilityofenergysystems.Thetermtrilemmaimpliesaneither/ortrade-offbetweenthreedimensions.Initsindextoolhowever,theWECrankscountriesontheirabilitytoprovidesustainableenergythroughthethreedimensions:Energysecurity,Energyequity(accessibilityandaffordability),Environmentalsustainability–bothintermsofitsoverallperformanceinachievingasustainablemixofpoliciesandhowwellacountrymanagesthetrade-offsofthetrilemma,deliveringsuccessfullyagainstallthreedimensions.

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Althoughoftenreinterpretedtosimplymean‘affordable’or‘cheap’energy,theWorldEnergyCouncil’sdescriptionalsoencompasseduniversalaccesstoenergy.Inthecontextofthetransitiontoazerocarbonlocalenergysystem,weseektobroadenthisconcepttoequitableaccesstothebenefitsandopportunitiesourfutureenergysystemcandeliver.

Equity,orfairness,canbeconsideredinanumberofdifferentdimensions:FairnessofoutcomesThisrelatestothedistributionofoutcomes–fairaccesstotheopportunities,benefits,andvaluethatiscreatedasourenergysystemisdecarbonisedanddigitalised,andthefairdistributionofcosts.

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Thismaybeatanindividualsituationallevel(isthepriceofparticipationinaservicefairexchangeforthevaluederived),withinagroup(amIpayingmorethanmyneighbour),oratasystemlevel(wheredoesvaluegeneratedbyaserviceofferingaccumulate,andwhopicksupthebill).Itneedstoconsiderbothissuesofaccessibility(istherearangeofservicesthatbetweenthemmeeteveryone’sneeds)aswellastherelativedistributionofcostsandbenefits(howmucheachparticipantbenefits,andwhopayswhat.)FairnessofprocessThisrelatestotheprocessbywhichthedistributionofoutcomesisarrivedat,andthedegreetowhichstakeholdershavethecapacitytoinfluencetheoutcome.Forexample,processesmaybemorelikelytobeperceivedasfairiftheyareaccurate,unbiased,consistent,correctable(canbemodifiedandgrievancesaired),ethical,andrepresentativeinreflectingthebasicconcernsofthepeopleinvolved.FairnessoftreatmentThisrelatestothewayweinteractwithpeople,bothintermsoftheinformationtheyreceive(e.g.adequateinformationandexplanationoftheprocessandoutcomes)andwhetherwemeettheirexpectationsintermsofthewaywetreatpeople–inarespectful,honest,andsensitivemanner.Onlybyaddressingallthreeareweabletoachieveenergyequity.

Why is energy equity important? TheInternationalPanelonClimateChangehighlightsthatequitycanbeconsideredinanumberofways:amoraljustification,foundedonethicalprinciples;alegalrightupholdingexistingtreatiesandagreements,orfromtheperspectiveofeffectiveness.2Anyarrangementconsideredfairismorelikelytomeetwithsocialapproval.Sociallicencetooperatenotonlythenmakesitmorelikelythatlocalenergysolutionswillbeagreedandimplemented,butthatwewillachievethemassparticipationrequiredtodeliveralocallybalancedenergysystematsufficientscale.Thepursuitofenergyequitythereforeisnotonlyanadmirablegoalfortheenergytransition–butalsoameanstoourend.

2FleurbaeyM.,S.Kartha,S.Bolwig,Y.L.Chee,Y.Chen,E.Corbera,F.Lecocq,W.Lutz,M.S.Muylaert,R.B.Norgaard,C.Okereke,andA.D.Sagar,2014:SustainableDevelopmentandEquity.In:ClimateChange2014:MitigationofClimateChange.ContributionofWorkingGroupIIItotheFifthAssessmentReportoftheIntergovernmentalPanelonClimateChange[Edenhofer,O.,R.Pichs-Madruga,Y.Sokona,E.Farahani,S.Kadner,K.Seyboth,A.Adler,I.Baum,S.Brunner,P.Eickemeier,B.Kriemann,J.Savolainen,S.Schlömer,C.vonStechow,T.ZwickelandJ.C.Minx(eds.)].CambridgeUniversityPress,Cambridge,UnitedKingdomandNewYork,NY,USA.www.ipcc.ch/site/assets/uploads/2018/02/ipcc_wg3_ar5_chapter4.pdf,accessed10June2020.

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3 Principles

Weareproposingthefollowingdraftprinciples.ThroughtheSFNtrialsweaimtoexplore:- whetherthesearetherightprinciples- howtotranslatetheseprinciplesintobestpractice.

Principles for an equitable local energy service offering

Principle Description

Collaborativedesign

Wewilldesignserviceofferingsinpartnershipwiththecommunityinwhichtheyaretobedelivered,soeveryonepotentiallyimpactedbytheservicecaninfluenceitsdesign.

Inclusiveoffering

Whenwedesignaserviceofferingwewillseekwaystominimisethebarrierstoindividualsbenefitingfromtheoffering.

Fairdistributionofbenefitsandcosts

Thesuccessofaserviceofferingwilldependontheeffortsofmanystakeholders.Thevaluecreatedbytheservice,andcoststhatariseshouldbefairlydistributedamongstthesestakeholders.

Minimiserisk Nooneshouldbemateriallyworseoffasaresultoftheservice.Thisdoesnotprecludeindividualsbeingexposedtosomelevelofriskthroughtheirinvolvementinthetrial(e.g.financial),aslongasitiswithfullinformationregardingtherisk,participationistheirownfreewill,andshoulditarise,theriskdoesnotcausesignificantorlastingharm.

Informedconsent

Wewillensurepotentialserviceusershaveadequateinformation,presentedinaclearandaccessibleway,aboutthebenefits,costs,andrisksassociatedwithusingtheservicetomakeaninformeddecisionaboutparticipation,includinginfluencingdecisionsaroundthewiderinfrastructure.

Respect Wewilltreatallthoseaffectedbytheservicewithrespectandsensitivity.

Datafairness Wewillbeopenandtransparentaboutthedatawearecollectingthroughtheuseofaservice,howitwillbeused,managed,ownedandshared,andseekinformedconsentfromserviceusers.

Anadditionalprinciplerelatingtochoice,aroundtherightoftheindividualtoinfluencedecisionsmadeataninfrastructurelevel,willalsobeconsideredaswedevelopandtesttheprinciples.

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Principles for ethical SFN trial delivery

Principle Description

Clarityofscope

Stakeholdersareclearabouttheanticipatedscopeoftheproject–whatitcanandcan’taddressordeliverwithintheavailableresourcingandtimeframe.

Collaborativedesign

WewillworkwiththecommunitysuchthatthetrialmeetsboththeneedsofProjectLEOandthecatalysingcommunitygroup.

Inclusiveparticipation

Weaimtomakeitpossibleforawidenumberofstakeholderstohaveavoiceinthedesignanddeliveryofthetrial,includingtheserviceofferingthatitwilltest,evenitiftheydonotdirectlyparticipate.

Donoharm

Weaimtoprotectallparticipantsdirectlyinvolvedinthetrial,andensurethatnoonefromthewidercommunityisworseoffasaresultofthetrial.Thisdoesnotprecludeindividualsbeingexposedtosomelevelofriskthroughtheirinvolvementinthetrial(egfinancial),aslongasitiswithfullinformationregardingtherisk,participationistheirownfreewill,andshoulditarise,theriskdoesnotcausesignificant,lastingharm.

Rewardingexperience

Wewanttoseefairdistributionofthebenefitsarisingfromthetrialandmakeeachtouchpointrewardingfortheparticipant.

Informedconsent

Wewillensureparticipantsinthetrialhaveadequateinformation,presentedinaclearandaccessibleway,aboutthebenefits,costs,andrisksassociatedtomakeaninformeddecisionaboutparticipation.

Respect Wewilltreatparticipantsandotherstakeholdersfairly,sensitively,andwithrespectthroughoutthetrial.Thisincludesbeingrespectfuloftheirtime,views,andproperty.

Continuousimprovement

Wewillactivelyseekfeedbackduringtheprocess.Wewillmonitorandreviewthetrialasitisunderway,andusethelearningtomodifyandimproveelementsifnecessary.

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4 Smart and Fair Neighbourhood trials

Our‘SmartandFairNeighbourhoods’programmewilldemonstratehowflexibilityservicescansitattheheartofasmarter,lowcarbon,locallyfocused,energysystem.WorkingwithsevenOxfordshirecommunitieswewilltrialdifferentapproachestoflexibilityatthegridedge.Wewillexplorehowsmarttechnologyandnewcommercialmodelscancreateopportunitiesinaprototypelocalenergymarketplace-andhelpustounderstandhowtodothisinanequitableandfairwayforeveryoneinOxfordshire.Eachtrialwillbebasedinaparticularneighbourhood,linkedtoanelectricitysubstation.Areasselectedforthetrialsarethoseidentifiedasthosethatarelikelytofacemorechallengestonetworkmanagersaspatternsofdemandandsupplychange.Inthepastthesolutiontodealingwithcapacitychallengeswouldbetoupgradethenetworkwithcostlynewequipmentandthedisruptivedigging-upofroads.Ouraimistofindnewwaysof‘balancing’electricitysupplyanddemandusingnewtechnologiesandpracticesandprovethisasaviablealternativetonetworkupgrades,whilstensuringasafeandsecureelectricitysupply.Oneofthechallengesindoingthis,isthatdemandfluctuatesduetoallsortsofreasons,notjustvaryingwiththeseasons,orevendaily,butminutebyminute.Tomakesureelectricitysupplyanddemandareinbalance,thelocalnetworkneedstobemore‘flexible’andadaptivetochangesingenerationanddemand.Weneedtouseanddevelopnewtechnologiesandpractices,includingelectricitystorageusingbatteries(includingelectricvehicles),softwaretoolsthatgatherandmakesenseofnetworkinformation,andmanagedemandwherethiscanbedonewithoutdisruptingservicestocustomers–forexample,throughswitchingwaterheatersonwhenthereisplentifulsupplyandoffwhensupplyistight.Thisapproach,calleda‘demandsideresponse’,unlocksnewopportunitiesforbusinesses,households,andcommunitiestobepaidforbeingmoreflexibleandadaptableinhowtheyuseelectricity.Itisinallourintereststhatnooneisleftbehindinthetransitiontoazerocarbonenergysystem.Opportunitiesmustbeavailabletoallbusinesses,households,andcommunities.Anynew,locallybalancedenergysystem,needstobenefitandbefairforeveryone,notjustaminoritywiththeirownsolarpanels,batterystorageorelectricvehicles.Aswithothercommodities,energycanbeboughtandsoldinamarketplacewheretherearebuyersandsellersandsomeonetomanagethemarket.Therearealsomarketswhereflexibilityistraded–theabilitytoshiftdemandintime.Takingaplace-based(orneighbourhood)approachtore-imaginingtheenergysystemiskeytoachievingbenefitsforeveryone.Ithelpsentirecommunitiescometogethertopoolresourcesinto

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newflexibilitymarkets,whilstidentifyingandnegotiatingthebenefitstheywanttoreceiveforhelpingbalancethelocalenergysystem.Wecallthesebenefits‘place-basedvalue’andarelookingtoachieveoutcomessuchas:

•Improvingcommunityresilience

•WorkingtowardsDistrict,CityandCountyCouncilgoalstoreachnet-zerocarbonemissions

•Generatingcommunitybenefit(suchasincomeforspendingoncommunityprojects)

•ReducingairpollutionSmartandFairNeighbourhoodtrialswillincludetechnical,social,commercial,governanceandregulatoryinnovations,andLEO’saimistodevelopallofthesewhilesafeguardingelectricityservices.

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5 Smart and Fair Neighbourhood trials design stages

Phase 1: Brief Development to March 2021 Projectteamandleadcommunitygroupdevelopabrieffortheproject,takingaccountofboththecatalysingcommunitygroup’saspirationsfortheprojectaswellastherequirementsofProjectLEO.

Outputs:foreachSFNtrial

Projectbrief Co-createdbytheprojectteamandleadcommunitygroup.Toinclude:- Energychallengetobeexplored- Projectscope–timeframe,geography,etc- AlignedimpactgoalsforthecommunitySFNtrialandLEO’s

goals.

Energylandscapemap Toinclude:- Geographicboundariesincludingtheprimarysubstation

area,community’ssocialandadministrativeboundary- Technicalmapoftheelectricitydistributionsystemwithin

thearea,EVinfrastructure,gascoverage,andheatmapplusanyinformationaboutservicesSSENarealreadyprocuringintheareaegthroughprojectTRANSITION.

- Energydemandstatusofresidentialandcommercialloads

Outputs:fortheethicalframework

Briefco-designprocess Areplicableprocessforco-designingalocalenergyprojectbriefwithacommunityorganisation

Principlesreviewplan AgreedplanforthetestingoftheprinciplesthroughtheSFNtrialsandconsultationwithwiderstakeholders

Phase 2: Community Engagement to March 2022 Duringthisphase,wewilltakethebriefandinitial‘valueproposition’andengagewiththewidercommunitytogettheirviewsontheproposal.Bytheendofthisstage,wewillhaveafullspecificationfortheprojecttobeimplementedduringthefinalphase.TheworkwillbedonebytheLowCarbonHubteamwiththecommunitycontributingtheirtimetotheLocalSteeringGroupandtosupportinglocalengagementactivities.

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Outputs:foreachSFNtrial

MemorandumofUnderstanding(MoU)

BetweenthecommunityandProjectLEOsettingoutexactlywhattheprojectis,howitistoberesourced,andwhattheexpectationsareofeachsideintakingtheprojectforward

Situationalanalysis

Buildingontheenergylandscapemaptoinclude:- StrengthsWeaknessesOpportunitiesThreats- Geodemographicanalysis- Communitycapabilities

Stakeholderanalysis Stakeholdermapping

Offerformulation Who:AudiencesegmentationandtargetingWhat:objectivesHow:product,place,price,promotion,people,process,physicalevidenceCompetitorAnalysisValuepropositionfromtheperspectiveof:

- Theleadcommunitygroup- Theenergysystem- Deliverypartnersofferingservices.- Theserviceuser

Equitabledesignstatement:howtheserviceofferingaddressesequityinitsdesign

Trialdeliveryplan Activitiesandtimetable

Ethicaltrialdeliverystatement

TheprocessesbywhichthetrialwillfulfilltheethicalSFNdeliveryprinciples

Monitoring,EvaluationandLearning(MEL)plan

- Triallearningobjectives(technical,social,commercial,environmental)

- Identifyingdatatobecollected- Datacollectionprocess- Howthetrialwillbeevaluated- Feedbackloopsforcontinuousimprovements- Disseminationoflearning

Outputs:fortheethicalframework

Communityconsultationframework

Areplicableprocessforconsultingthewidercommunityinthedesignofalocalenergyserviceoffering

Equitableserviceofferingdesignanddeliverystatementtemplateandprocess

Areplicableprocessandtemplateforincorporatingequitableprinciplesintothedesignanddeliveryoflocalenergyserviceofferings

Ethicaltrialstatementtemplate

Areplicableprocessandtemplateforincorporatingequitableprinciplesintothedesignanddeliveryoflocalenergyserviceofferings

Toolkitlibrary–phase1 Alibraryindexofexistingtoolsandresourcestofacilitateethicaltrialdeliveryandequitableserviceofferingdesign

Toolkitgapsanalysis Analysisofgapsinexistingtoolsandtechniquestosupportthedesignofethicaltrialsandserviceofferings

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Phase 3: Implementation, until March 2023 InthisphasewewillimplementeachSFNprojectasdescribedinthespecificationagreedintheMemorandumofUnderstanding.WewillthenmonitortheresultsandreportonthemtothecommunityandtoInnovateUK.

Outputs:foreachSFNtrial

Aprojectdeliveryreport - Describetheimplementationthathappened,theprocessesfollowed,andwhatworkedandwhatdidn’t

- Summarisethemonitoring,evaluation,andlearningsthatcomeoutofthetrialandrecommendationstobefedintotheoverallprojectdeliveryreport

Serviceofferingreview Anevaluationoftheeffectivenessoftheserviceofferingtomeettheneedsofusersandrecommendationsfornextstepsandimprovements

Ethicaltrialstatementreview Areportonthetrial’sdeliveryoftheethicaltrialstatementandreflectionsandlearningsfortheethicalprinciples

Outputs:fortheethicalframework

Finalethicalprinciples Finalisedversion

Ethicalenergysystemrecommendations

Evidencebasedlearningsandrecommendations

Toolkit Finalisedversion

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6 Developing an ethical toolkit

AlongsidetheSFNtrials,wewillbedevelopingatoolkittosupporttheethicalandequitabledesignoflowcarbonserviceofferingandcommunity-ledtrialdelivery.Eachtrialwillgiveustheopportunitytotrialdifferenttoolsandtechniquesandlearnaboutwhichapproachesandcombinationsoftoolsaremosteffectiveindifferentsituations.Wearefortunatethatmanyexistingtoolsandresourcesalreadyexistorareunderdevelopmentbytheextraordinaryecosystemofpeopleandorganisationscurrentlystrivingtodevelopasmartandfairenergysystem.Ratherthanstartfromscratch,ouraimisforthisframeworktobuildonthisexistingworkandresources,andtomakeourfindingsfreelyavailabletoallthosewhomayfinditofvalue.Throughthetrialwewillalsoidentifygapsinthetoolkitandworkwithpartnersandthewiderlocalcarboncommunitytolooktoplugthesegaps.Forexample,thiscouldincludea‘communitylens’approachsituationalanalysisandbuildonthenewstakeholdermappingapproachesalreadyunderdevelopment.Wehavearrangedthetoolsintothreekeyareas:

A. CommunityLedTrialDesign–Acollectionoftoolsandresourcestohelpfacilitateagrassroots,community-ledapproachtoserviceofferingdesign.Thisareaincludesresourcessuchasstakeholdermappingtoolsandconsultationtechniquemethodologies,frameworks,andperspectives.

B. LocalEnergyOfferingAssessment–Asetoftoolsandresourcesthathelpusbetter

understandwhomayormaynotbenefitfrom,orparticipatein,anoffering,aswellaswhopaysforassociatedcostsorhowtoincreaseaccessibility.Thisareaincludesresourcessuchasmappingtools,capabilityprofilingtools,valuepropositiondevelopmentdocuments,innovationimpacttools,businessmodelswithassessmentideasandanumberofreportswhichhighlightwhycertainschemeshavebeensuccessfulandotherslessso.

C. EthicalTrialDelivery–Guidanceandbestpracticeintrialdelivery.Thisareacontains

resourcesincludingbiodiversityandenvironmentalbestpracticeguidance.Themajorityofresourcesinthisareaareonlinedocumentsthatshowlearnedbestpracticestandardsandaccompanyingcasestudiesorexamplesshowcasingwherethingshavegonewellandwheretheyhaven’tandhowtoaddressthesedifficulties.

WehavealsocompiledabankofreferencedocumentsforSmartandFairNeighbourhoodtrialswhichconsistsofvariousresearch,policy,andopinionpiecesrelevanttotheethicalframework.ThisrangesfromIntergovernmentalPanelonClimateChange(IPCC)reportstolocalarticlesaswellasprojectsandtrialsthathavebeenconductedinthepast(e.g.TheDEMAND–DynamicsofEnergy,Mobility&Demand–project,runbyLancasterUniversity).

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WeareawarethatalltheSmartandFairNeighbourhoodtrialswillbedifferentandrequiredifferentadviceandguidance.Itisourintentionthatthroughthistoolkitanyandalltrialsandserviceswillbeabletobenefitfromthewealthofinformationandexperiencedocumentedintheseresources.

7 Appendix: Definition of local energy

Energyarrangementsledby(orforthebenefitof)localcitizenswithinalocaldistributiongeography.Localenergyserviceswillbecharacterisedby

- Theinvolvementoflocalstakeholders- Localdecisionmaking- Localassetownership- Localbenefitdistributions

Thesecanbedeliveredthroughacommunityenergymodel,whichalsoaddsanapproachtolocalcorporategovernanceandfinancingthatrequiresdemocraticownershipanddistributionofprofits.