My View: Publicly Owned Energy-Generation Networks

Thank you to everyone who contacted me about community energy and enabling local renewable energy schemes to sell the power they generate directly to local households and businesses.

I agree with you on the importance of this issue. I believe local and community renewable energy has a vital role to play in delivering clean power by 2030. It will contribute to Britain’s total power capacity, deliver important local benefits and reduce network system losses by bringing electricity supply closer to demand. It can also contribute to local prosperity, driving down electricity bills and promoting skilled jobs.

I therefore welcome that our Government has put local and community energy at the heart of its vision for delivering the clean energy transition. On 10^th  February, we published our Local Power Plan, which sets out the UK’s largest ever public investment in community energy. Up to £1 billion will help support locally owned clean energy projects such as solar on community buildings like libraries, leisure centres and social clubs. It will provide grants to local authorities and community groups to support projects in their early stages. It will also provide loans and project finance to support construction and operation, as well as funding to help communities buy a stake in larger renewable projects in their areas. 

I recognise that, as the Power for People campaign has long argued, the rules of our energy system have for too long held back the growth of community energy in this country. While these rules may be relatively simple for large developers to overcome, they pose major obstacles to local and community schemes relying on volunteers with limited time and resources.

That is why I am pleased at our Government’s commitment to breaking down these bureaucratic barriers. I know that work is already underway with Ofgem and the industry on proposed changes to energy market codes that will make it easier to establish local energy communities, share locally generated power and benefit from community energy. I understand that this is a complex process, but I know our Government is committed to making progress on it as quickly as it can, so communities can sell the power they generate as soon as possible. I will continue to monitor developments on this. I can assure you that I will continue to back measures to give communities ownership and control over their own energy.