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The UK has announced its largest ever public investment in community-owned green energy, aiming to significantly expand the role local groups play in generating renewable power. But what does this commitment involve, and how can communities participate effectively?
Community-owned renewable energy operates on a straightforward premise: local residents collaborate to establish a social enterprise that either builds clean energy projects or purchases shares in them. The electricity produced—whether from wind, solar, or water sources—is then fed into the national grid. In turn, the community benefits financially from the profits generated. Although this model has proven successful, community energy projects supply only a small fraction of the UK’s electricity today. Since the launch of Baywind Energy Co-op in Cumbria in 1997, community energy has grown gradually but still accounts for just 0.5% of national power output. This is despite findings that show such projects generate twelve times more local economic value than commercial schemes.
The government’s new Local Power Plan seeks to change this landscape by pledging £1 billion to support community-owned clean energy. Managed by Great British Energy (GBE), a recently established public energy company, the funds will serve as seed money for early-stage activities like feasibility studies and help finance the construction of projects, alongside efforts to attract private investment. Louise Daniels, head of external affairs at Thrive Renewables, describes the funding as “a catalytic piece of seed funding.” In addition to financing, the plan offers expert advice, business model development support, and regulatory reforms designed to remove barriers related to shared ownership.
The ambitious goal of the Local Power Plan is to deliver 8GW of locally owned renewable energy capacity by 2030, potentially enabling communities throughout the UK to benefit from energy generated in their own regions. Yet specifics about the timeline for rollout and exact implementation strategies are still emerging. Afsheen Kabir Rasheed, CEO and co-founder of Repowering London, highlights several unanswered questions within the plan, such as how energy sales will be managed and how support will be tailored for different areas. Despite these uncertainties, she urges new community groups to begin organizing and engaging volunteers promptly, emphasizing, “I would say to new community groups to not hold back and to start their initial galvanising, mobilising of people.”
For communities interested in getting involved, GBE has already opened a call for expressions of interest, inviting groups to register for updates or submit early project ideas for informal feedback. Additional support is available from organizations like Community Energy England and its counterparts in Scotland and Wales, as well as local groups such as Repowering London and Community Energy Pathways, which offer practical guidance and assistance.
Looking at the broader energy landscape, Ollie Pendered, executive chair at Community Energy Pathways, places the Local Power Plan within a trio of crucial changes necessary to scale up renewable energy in the UK. Alongside the Local Power Plan is the forthcoming reform of the electricity grid—known as ED3—set to start in 2028, which will address issues of grid capacity, pricing, and planning. The third element is the Warm Homes Plan, a £15 billion government initiative launched earlier this year to upgrade five million homes and reduce fuel poverty for a million families by 2030. Pendered cautions against viewing the Local Power Plan as a standalone solution, stating, “It’s the enabler, because you need these other parts – the network development, as well as the Warm Homes Plan – to actually deliver renewables.” These three components together are essential to driving the UK’s renewable energy transition forward
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