The government reconfirmed its commitment to community-owned energy during two parliamentary debates this month.
Held on 4 February, the first debate focused on energy security and net zero. Labour MP Catherine Atkinson said that community energy projects can help the UK achieve clean energy by 2030, giving the example of Darley Abbey Community Energy, which is making plans for a 100kW Archimedes screw on the River Derwent.
“The project could generate enough hydroelectricity to power all the businesses at Darley Abbey Mills, but there are hurdles in place, including planning permission, insurance costs and the need for up-front capital,” she said, asking what the government could do to support similar local renewable community projects.
“We often think about planning reform as being about the large-scale projects, but it is also about unblocking the smaller-scale projects,” said energy secretary Ed Miliband. “Having a national energy policy statement that includes 2030, working with local authorities and making sure there are enough planners to make the decisions – all those things can all make a difference.”
From the Lib Dems, Pippa Heyling said the £10m community energy fund is oversubscribed and asked ministers to reassure community groups around the country that they will enlarge and expand it.
“We are absolutely determined that, as part of Great British Energy, community energy will be massively expanded,” said Miliband. “That was our manifesto commitment, and that is what we will deliver. Honourable members around the chamber have asked how their community can benefit, and community energy will be an essential part.”
Asked by Labour/Co-op MP Kirsteen Sullivan how he has engaged with Scottish council leaders, energy minister Michael Shanks said local power plans is a key part of Great British Energy’s delivery.
“It will give communities the power to develop local power projects wherever possible and to achieve the social and economic benefits of doing so,” he added. “We are engaging with a number of stakeholders across the UK.
“Because of the devolution settlement, our main contact will be with the Scottish government, who have their relationship with Convention of Scottish Local Authorities, but we are determined that local government across the UK will help drive this forward, and will have the capacity to support communities in doing so.”
The Co-operative Party welcomed the government’s reiteration of support for the community energy sector.
“Before Christmas, the government laid out their Clean Power 2030 Action Plan. In it, they pledged to support the principle ‘that communities that host clean power infrastructure should benefit from it,” it said.
Related: MPs launch call for evidence on ways to grow community energy sector
“Now, that principle will be weaved into our laws. Community-owned energy projects are already delivering clean power into the grid across the country. With support from GB Energy, so many more communities could benefit from these schemes. Not only can local communities have a say in how those projects are run, but also households in those areas can directly profit from their local energy project. We’re excited to see our campaigns and the efforts of our members coming to fruition.”
“This government is committed to delivering clean power by 2030 but a key part of that is making sure that communities are right at the heart of it, and we know as a government that ownership really matters,” Shanks told the Co-op Party, of which he is member.
“That’s what the Co-op Party has been fighting for for decades. It is what we are committed to delivering in government, making sure not just that communities benefit from clean power, but that they also have a stake in that clean energy future, owning part of energy infrastructure. And that is part of why in the Great British Energy Bill, we want to deliver our local power plant, feeding power into the hands of local people, making sure that up to eight gigawatts of power by 2030 is owned by communities, that’s our commitment to the people of this country.”
Introduced to Parliament in July 2024, the Great British Energy Bill introduces a provision to create a publicly owned energy company to drive the deployment of low-carbon, ‘clean’ energy, which it defines as energy not derived from fossil fuels. As part of this, the company would provide funding for local energy projects to local authorities and communities.
The bill is going through the House of Lords. During a debate on 11 February, a government amendment was adopted to include community energy initiatives within Great British Energy’s remit.
Under this amendment, GBE will facilitate, encourage, and participate in projects involving or benefiting local communities, thereby promoting local energy solutions.
Several peers spoke in favour on the amendment, including the Lord Bishop of Norwich and Baroness Bennett of Manor Castle (Green Party).
Also backing the amendment was Earl Russell (Lib Dem), who highlighted the strong cross-party support for community energy. He also proposed an amendment seeking clarity on the £10m community energy fund, which was oversubscribed and due to run out in May, and asking for potential additional funding or interim measures until GBE could provide support. His amendment did not pass.
During the debate, Baroness McIntosh of Pickering (Conservatives) mentioned co-operatives, giving Denmark’s example, as a country where co-ops “own a significant portion of renewable energy sources”.
Responding to some of the questions raised, Lord Hunt of Kings Heath, minister of state at the Department of Energy Security and Net Zero, said community energy would play a significant role in ensuring a fair and affordable energy system while contributing to meeting the UK’s net-zero goal.
But he accepted that the government needed to address the uncertainty surrounding funding for community energy projects and how the £10m community energy fund would be distributed.
The UK government has set a target for the UK economy to meet a net zero target by 2050.
On 5 February PM Keir Starmer announced plans to allow nuclear projects to be built outside eight designated nuclear sites, calling on tech companies to work alongside the government to build small modular reactors (SMRs) which would be used to power intensive AI data centres in Britain.
Nuclear power generates 15% of the UK’s electricity. Worldwide, there are no commercial SMRs that are operational, which means that the UK would be the first to implement such a scheme.
The announcement was welcomed by trade unions and business groups but criticised by environmentalists.
