Taking back control of local energy could help drive a new generation of renewables 

Lucy Dixon
29.04.2024

A report from Common Wealth, sets out a blueprint for Labour’s ‘Local Power Plan’ which could help win local support for new renewable energy.

The think tank Common Wealth has produced a report outlining a vision for how an agenda for community renewables could help to win local support for new energy infrastructure, and give communities a genuine stake and a say in the UK’s clean power future.

The report argues that GB Energy should co-invest with municipal, co-operative and community-owned energy providers using a ‘public-common partnerships model’, in which local accountability is coupled with wider public coordination of the energy transition.

Mimicking the design of the Inflation Reduction Act, the report argues the £3.3 bn Local Power Plan should be “uncapped”; if there is demand for viable projects that would decarbonise and cut bills, then the capital investment should be increased.

The report also recommends planning reform to avoid energy projects being blocked by limited opposition of a select few residents and regional boards to pool resources and prevent surpluses being concentrated in certain areas.

The 2022 State of the Community Energy Sector report revealed 65% more community energy organisations had stalled projects than in 2020. Growth in community-owned electricity capacity has been stunted, falling from 81% in 2016-17 to 18% in 2018-19 and 2.4% in 2020-21. A combination of factors holds the sector back, including onshore wind bans, the planning system, the economics of renewables, financing costs, and the withdrawal of public support.

Common Wealth’s report comes after a separate study from the think tank setting out the pathway to turn GB Energy into a clean energy giant capable of driving the UK’s energy transition.

Mathew Lawrence, Director of Common Wealth, said:

If we get it right, the renewables revolution is not just a chance to cut bills and deliver energy security, it is also a chance to give communities across the country a genuine stake and a say in local clean power infrastructure. But that won’t happen by chance. Community-owned power can become commonplace, just like in Denmark or Germany, but that requires active ambition and resources to support people and places coming together to own their energy future.

Nick Pearce, Research Fellow at Common Wealth, said:

Climate action starts with handing over the reins to the people and places that need it the most. Endless bureaucratic queues and anemic investment have stifled what should be a thriving sector that brings jobs, lower power bills, energy security and voice to every corner of the UK. It’s time to take back control by bringing ownership home, away from far-off business interests and back to the people who use and produce it.

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