How can innovation be used to manage demands on rural energy grids, using the interaction between the agriculture sector and rural communities, providing solutions to accelerate decarbonisation?
The Local Area Energy Plans (LAEPs) for Powys and Ceredigion highlight the need for £559 million investment in grid infrastructure across the region, to facilitate the energy transition to net zero. Managing the demand on rural grids in more innovative ways could help to reduce this cost, whilst also having the potential for wider benefits. Agricultural machinery and emissions from land use, which both make up a significant portion of the region's emissions, were not part of the scope of the LAEPS. If agricultural machinery is simply electrified, it will add additional demand on an already constrained electricity grid.
Ceredigion and Powys require substation capacity increase across all zones (51 MW in Powys and 31 MW in Ceredigion), which is likely to take time. Smart Local Energy Systems (SLES) have the potential to provide a more cost-effective and sustainable solution to this problem. In addition, reducing and optimising the demand on rural grid infrastructure may increase the speed at which new renewable energy generation projects can be developed and improve how they are perceived by the local community.
Rural Mid Wales has a strong agricultural community and is an important economic sector with a large number of employees across the region. This challenge provides an opportunity for suppliers to identify innovative and smart solutions that help to decarbonise the agricultural industry as well as the wider region. The wider rural economy may also play a part in the project, for instance decarbonisation of local supply chains; delivering greater benefit to the area.
Growing Mid Wales have been successful in applying to Welsh Government's Whole Systems Research and Innovation in Decarbonisation (WSRID) challenge fund. Procurement for this funding has now closed. Below are the successful applicants, for funding to carry out feasibility studies in decarbonising agriculture, along with a summary of the focus of their studies:
Severn Wye Energy Agency: Smart Local Energy Systems for Industrial Parks - Four crosses near Welshpool
Severn Wye Energy Agency is conducting a feasibility study on implementing Smart Local Energy Systems (SLES) in industrial and business parks in Powys and Ceredigion. The project aims to reduce energy demand on the grid by promoting local renewable energy generation and battery storage. Businesses will generate electricity from solar panels, store excess energy in batteries, and use it during peak periods to reduce reliance on the constrained grid.
The study will examine energy usage at industrial sites, with the goal of creating energy reports and retrofit recommendations. By aligning local energy generation with demand, this project aims to unlock grid capacity, enabling technologies like agrivoltaics, electrified agricultural machinery, and the adoption of electric vehicles in rural areas.
Centre for Energy Equality: HARVEST (Holistic Agricultural and Rural Virtual Energy System Transition) - Llanidloes
The HARVEST project , is an innovative concept that links renewable energy systems—such as solar panels and batteries—owned by households, farms, and businesses into a decentralised, community-driven Virtual Power Plant (VPP). This community-owned model enables participants to store, trade, and manage energy locally, reducing pressure on rural grids and lowering energy costs.
The project emphasises community engagement and focuses on low-income and vulnerable households, ensuring that the benefits of renewable energy extend to all. By combining renewable energy production with flexibility markets, the VPP would reinvest financial returns into community projects. The study will also explore how agriculturally-owned assets, like on-farm solar and battery systems, can play a dual role in reducing farm operating costs and contributing to the wider energy network.
Challoch Energy: Village Rural Energy in Mid-Wales (VREM-Cymru) (Pentref Ynni Gwledig) - Locations across both counties, scoping which communities are suitable, aiming for an even split across both Local Authorities
Challoch Energy is investigating how Smart Local Energy Systems (SLES) can decarbonise rural communities while delivering financial benefits. Known as Village Rural Energy in Mid-Wales (VREM-Cymru), the project focuses on integrating hydrogen production with renewable energy sources such as wind, solar, and hydro. This approach addresses grid constraints while tackling fuel poverty and reducing community energy costs.
The study will map energy demands in rural areas and evaluate the feasibility of creating a localised energy network. The findings aim to inform policy on the role of hydrogen in energy systems, offering scalable solutions for decarbonising homes, transport, and agriculture in a just and sustainable way.
Lafan & Coleg Sir Gâr: Sustainable Utilisation of Livestock Slurry for Renewable Energy Generation, Grid Optimisation and Excess Nutrient Export to a Centralised Treatment Hub - Felinfach
Lafan, in partnership with Coleg Sir Gâr, is exploring the use of livestock slurry as a resource for renewable energy generation and nutrient recovery. Their feasibility study will investigate establishing a central hub to process slurry from cluster farms. The process includes anaerobic digestion (AD) to produce biogas, nutrient recovery to reduce environmental impacts, and pyrolysis to create biochar.
This innovative approach addresses challenges such as excess nutrient runoff, which affects water quality and biodiversity, while offering farmers practical solutions for decarbonisation. By identifying potential sites, including Volac, a modern dairy production facility in Felinfach, Ceredigion, the study aims to create a replicable model that aligns with Welsh Government goals for net-zero emissions and sustainable agricultural practices.
Water to Water: Smart Local Energy Systems for Dairy Farms - First Milk farms in Ceredigion
In collaboration with First Milk, Water to Water is investigating the deployment of Smart Local Energy Systems (SLES) on dairy farms. This project focuses on tailoring energy solutions to the unique needs of farms in Ceredigion, such as powering milking equipment, water heating, and storage systems. The aim is to enable farms to generate and store 100% or more of their energy requirements from renewable sources.
The study will explore how farms can achieve energy self-sufficiency while reducing their CO2 emissions. By addressing the energy needs of rural grids and communities, this project supports the agricultural sector in its transition to net zero, demonstrating scalable solutions that can be replicated across Mid Wales and beyond.
Share this page
