The UK’s Energy Security and Net Zero Committee has issued a call for evidence on community energy as MPs look for ways to scale up the sector.
The call for evidence, which is open until 13 January 2025, comes as the government looks for ways to deliver on its pledge to double the size of the UK co-op and mutuals sector.
It will address three key issues, with the committee looking to:
- identify potential solutions to the financial and regulatory barriers facing community energy projects, including how to establish local supply;
- consider the role of the Local Power Plan, which will be produced by GB Energy, in supporting community energy; and
- assess how reforms to the planning system, grid connections and the energy market could support the growth of community energy at scale.
The committee is looking for insight into such questions as how the energy market and licensing regulations can be reformed to enable community energy projects to sell the electricity they generate to local customers, without the current barriers, and be properly remunerated.
MPs are also asking how existing government support mechanisms, such as the Smart Export Guarantee, can be used to provide community energy projects with more financial certainty.
Related: Rachel Reeves pledges council for co-ops and mutuals in Mansion House speech
Community energy businesses are also being asked what regulatory solutions are needed to minimise the high costs and long delays incurred in securing a grid connection.
Emma Bridge, CEO of Community Energy England, said: “Community Energy England welcomes that the Energy Security and Net Zero Select Committee has chosen ‘Unlocking community energy at scale’ as one of itsfirst three inquiries.
“The focus on ‘the policy, market and regulatory reforms needed to support the growth of community energy and realise in full the sector’s potential contributions to achieving the UK’s net zero targets’ is highly relevant and taken with the outputs from the recent DESNZ call for evidence on barriers to community energy’ should help the government identify strategic reforms.”
She added: “The questions are specific and highly relevant to the challenges the sector faces. We are encouraging all our members and their collaborators to respond. We are hopeful that this is yet another sign that the government not only recognises the valuable role that community energy can have in tackling climate change, but is also committed to ensuring that people are at the heart of the energy transition thereby benefiting local people, businesses, and places.”
Sarah Merrick, founder and CEO of community energy company Ripple Energy, said: “For too long, the benefits of renewable energy generation have been out of reach for many people. Large-scale, low-cost community projects offer an opportunity to change that, democratising Britain’s clean energy transition.
“This inquiry recognises that immense potential and we look forward to engaging in the process, sharing our insights and recommendations.”
