Community energy refers to energy projects built on the principles of community ownership, leadership, accountability and benefit. It includes community-led renewable energy, energy demand reduction and energy supply projects, either wholly owned or controlled by communities or developed in partnership with commercial or public sector organisations.

The Energy Secretary Ed Miliband announced in Parliament that: ‘GB Energy will oversee our biggest expansion of community energy in our history through our Local Power Plan.’ The plan envisages local authorities partnering with community energy organisations to develop up to 8 GW of clean power by 2030. To achieve this, up to £600mn/y will be allocated to local authorities in grants alongside up to £400mn/y for community energy in low interest loans.

No previous government has proposed such a central role for community energy in delivering its energy policy. This represents not only an attempt to decarbonise more rapidly, but to do so in a fundamentally different way.

By bringing community energy into the fold, local authorities will work with people with expertise in local energy needs, barriers and opportunities. They will also see tangible benefits to the local area from low-carbon infrastructure, including savings on energy bills for public institutions such as schools and hospitals, and community benefit funds being spent locally. In emphasising community ownership, Labour hopes to strengthen public support for green infrastructure.

Community energy goes beyond energy generation. Energy efficiency work and advice services for those in fuel poverty helped save £4.4mn in energy bills last year, a 50% increase since 2020. These utilise not only expertise but community energy practitioners’ understanding of local conditions and needs. Some 72 new energy efficiency and advice services are set to be launched in the next year.

The sector is also driving innovation in policy areas such as domestic heat, with projects exploring how community-scale heating can reduce emissions in a way that is affordable for households through Smart Local Energy Systems or by utilising local wind power.

Overcoming barriers to development
It is testament to the ingenuity and resilience of its practitioners that the community energy sector has continued to grow during an era of high interest rates, sporadic and piecemeal government funding, and significant regulatory barriers. However, many projects that would have been viable in other circumstances have stalled. Some have been told they would not be able to connect their planned renewable energy installations until the 2030s. Almost no new onshore wind projects have been possible due to highly restrictive planning laws introduced in 2015 (Ambition Lawrence Weston’s installation of the largest onshore wind turbine in England is a notable exception). At least 79 community energy projects are waiting to deliver 270 MW of clean power.

It is testament to the ingenuity and resilience of its practitioners that the community energy sector has continued to grow during an era of high interest rates, sporadic and piecemeal government funding and significant regulatory barriers.

The Labour government has begun work to remove some of these barriers. One of its first actions was to remove the onshore wind ban, bringing planning laws on wind into line with other types of infrastructure. The King’s Speech earlier this month contained provisions to set up GB Energy and kickstart the Local Power Plan. The Planning and Infrastructure Bill promises to accelerate upgrades to the national grid. These are welcome statements of intent from a government that looks determined to take a different approach to reaching net zero.

More action will be needed if the government is to succeed in its clean energy mission. Greater investment in energy efficiency and low-carbon heat, plus a real commitment to reducing grid connection times for community owned renewable energy projects will be crucial in unlocking the potential of the community energy sector. Ensuring all local authorities make best use of local community energy organisations as key partners will also help to get many projects off the ground.

The government has the opportunity to unlock stalled community energy projects and kickstart many more. With greater collaboration with local authorities, changes to regulation and better access to funds, community energy stands ready to grow exponentially, delivering local benefits and driving the energy transformation.

The views and opinions expressed in this article are strictly those of the author only and are not necessarily given or endorsed by or on behalf of the Energy Institute.

• Further reading: ‘A national LAEP forward – hastening ‘place-based’ decarbonisation efforts’. Think globally: act locally – the most effective way to decarbonise a town or community is to design a locally-appropriate strategy. This can be particularly the case for domestic heating. Find out how ‘place-based’ local area energy planning is already happening in the UK.
• Polly Billington, Chief Executive of UK100, looks at the power of local, homegrown electricity in energy system planning.