Communities across the UK are set to gain greater control over locally produced energy under a new government-backed plan that includes up to £1 billion in public funding for community-owned clean energy projects.
Great British Energy and the government have today (10th Feb) published the Local Power Plan, setting out measures to support locally owned renewable generation, such as solar panels on community buildings including libraries, leisure centres, places of worship and social clubs. Ministers say the plan represents the largest public investment in community energy in the UK to date.
Under the proposals, communities and local authorities will be supported to develop, own and manage clean energy projects, with the aim of cutting energy bills, generating long-term revenue for local facilities and increasing local involvement in the energy system. Great British Energy estimates the programme could support around 1,000 projects nationwide as part of efforts to deliver clean power by 2030 and improve energy security.
Community energy projects are already operating in parts of the UK, including Bristol, Oxfordshire, Wales and the Scottish islands. However, the sector has remained relatively small compared with other countries. In Germany, for example, around 40% of renewable energy capacity is owned by citizens or communities. The government says a lack of funding, technical expertise and regulatory support has historically limited similar growth in the UK.
The Local Power Plan aims to address these barriers through a combination of direct funding, skills and capacity building, and regulatory reform. Funding will be provided through grants and loans, with some grants targeted at underserved areas or regions with low levels of existing community energy. Great British Energy will also act as a central point of advice for groups interested in developing projects.
In addition, the government plans to consult on potential regulatory changes, including whether clean energy developers should be required to offer shared ownership opportunities, and how locally generated power can be more easily shared within communities.
Research cited by the government suggests community energy projects often reinvest revenues locally, support more jobs than non-local projects, and contribute to increased community pride and cohesion. Great British Energy will work with devolved administrations to align the plan with existing programmes in Scotland, Wales and Northern Ireland.
Mike Thornton, Chief Executive of Energy Saving Trust said: ‘Today’s publication of the Local Power Plan puts community energy at the centre of Great British Energy’s work to deliver clean power. The ambition for every community to have an opportunity to own or be involved in a local energy project by 2030 will give people genuine agency in the energy transition, directly driving benefits back to local areas whilst supporting climate action.’
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