CEE worked hard leading up to the July general election to make sure that “Great British Energy will deliver a step change in investment in local and community energy projects, putting local authorities and communities at the heart of the energy transition.” Energy Minister, Michael Shanks.
Following the election, CEE has identified 14 priority policy areas, based on feedback from members and analysis of where there are opportunities and need for political action.
(*mentioned in government policy - but policy still in development)
See our News piece on government policy affecting community energy.
Aims: Get the scheme up and running, maximise the amount of funding available, embed conditionality into council funds to support community capacity building and feasibility studies, prepare the sector to deliver
Aims: Ensure community representation in decision making structures, begin the LPP before GB Energy is fully established
Aims: Lead and coordinate thinking about how the LPP grants and loans will be administered and how communities will access long term funding to pay off the Local Power Plan development and construction loans
Aims: Enable a smooth transition from the CEF to the LPP, enable the sector to use all the CEF funding available, extend the CEF beyond Spring 2025
Aims: Make the offer of 15% shared ownership mandatory for commercial renewable projects; ensure shared ownership model enables meaningful community action
Aims: Add local supply to REMA, ensure campaign proposals are effective
Aims: Secure tax relief on capital investment in community energy
Insulation and Energy Efficiency*
Aims: Increase funding, ensure community energy forms part of the Warm Homes Plan
Aims: Adapt regulations and practices to enable <6MW CE installations to connect to the grid more swiftly, ringfence grid capacity for CE
Aims: Enable the sector to take advantage of the relaxation of planning regulations
Aims: Add net zero test to National Planning Policy Framework
Aims: Increase awareness of and interest in supply chain issues among policymakers, develop strategy for combatting the issue
Aims: Improve LA engagement with CE sector
Aims: Mandate and fund LAEPs, improve LA capacity and knowledge to deliver with CE
As part of its Clean Energy Superpower Mission, the Labour government has set out its Local Power Plan, which earmarks £1bn a year for local energy projects (£600m for local authorities in grants and £400m for communities in low interest loans). CEE is working to ensure the delivery of this programme is effective as it represents an unprecedented opportunity for growth in the sector.
The Local Power Plan will be administered by Great British Energy, a new body that, once constituted, will have a mandate to support the development and scaling of municipal and community energy. Engaging positively with GB Energy is a major priority for CEE. CEE will also feed into discussions over how to finance the Local Power Plan. Transitioning from the grants offered by the Community Energy Fund without any loss of momentum is another challenge that CEE is keen to support the government in managing.
We are also keen to explore different models for community energy projects with the government. Shared ownership models, if meaningfully constituted, could represent a real opportunity for the community energy sector to engage with commercial installations. And enabling local supply, whereby community energy organisations could sell electricity directly to consumers, would open up new opportunities for the sector.
There are other barriers to growth for the community energy sector that CEE is working with partners and officials to find solutions to. Some are financial; tax relief on capital investments would help incentivise investment for projects and more funding is needed to support insulation and energy efficiency projects, which are crucial in reducing carbon emissions and tackling fuel poverty.
Other barriers relate more to technologies and systems than finance. The government has recognised that massive waiting lists for grid connections are an issue that they need to tackle. They have already removed the ban on onshore wind but more work needs to be done to enable community energy to take advantage of the opportunity this presents. Further reforms to the planning system, including introducing a net zero mandate are also key to CEE’s policy programme.
Community energy organisations also want to know that the materials they buy are not the product of forced labour. The ethical sourcing of solar panels particularly is a challenge that has not yet been grasped by any UK government.
There are also opportunities to support improved Local Authority collaboration with community energy. Properly supported Local Area Energy Planning would help local energy grow strategically, foster collaboration between key local stakeholders, including local authorities and help community energy organisations know where to prioritise their work rather than just being opportunistic.
We regularly review our priority areas and some of our work does not fit cleanly into a single category. This webpage does not represent an exhaustive list of all the barriers to community energy. CEE’s Policy and Advocacy team also works on other issues as they emerge, for example the Law Commission’s recent proposals to place greater restrictions on Cooperatives and Community Benefit Societies.