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Community Energy now in the Energy Bill

  • by JW

“This support for the sector will give it and potential investors much-needed confidence. Community-run clean energy projects could be powering millions of homes and saving millions of tonnes of CO2 within the next ten years.”  [Director of Power for the People David Shaw]

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Last summer the question being asked about one of the new government’s proposed pieces of legislation was: Will the Energy Bill include community energy? There was certainly a lot of hope – and a lot of frustration, with MPs calling for community energy to be added to the new Energy Bill.

Unfortunately politics scuppered that particular attempt – but the campaign group Power for People has continued its lobbying. Last month they sent the Energy Security and Net Zero Select Committee their submission to the ESNZ Select Committee’s “Unlocking Community Energy at Scale” Call for Evidence. And earlier this month they briefed the Lords at the Great British Energy Bill Report Stage – Remediating the Absence of Community Energy.

And now it seems to have paid off  with success! as the Government puts community energy in the Great British Energy BillAfter six months of collective advocacy, on Tuesday evening community energy was included in the GB Energy Bill.

The Bill sets up the Great British Energy company, a much-heralded part of greenhouse gas emissions reduction plans. This company is expected to spend £8 billion on this over the next few years, making it vital that this legislation which sets it up ensures community energy’s growth is supported. The Bill now specifically enables the company to promote the growth of community-led energy projects alongside larger ones.

And this was the Minister’s response:

“On community funds, of course we recognise the important role that community groups play in our efforts to tackle climate change and the sector asks around future funding. Great British Energy will build on the Community Energy Fund by partnering with and providing funding and support to community energy groups to roll out renewable energy projects and develop, as noble Lords have said, up to 8 gigawatts of power. Further details will be set out shortly, but that is as far as I can go tonight.”

The Bill has one more House of Lords stage – 3rd reading, set for 25th February, and will then return to the Commons soon after for, probably, one last debate there. We plan to use these opportunities to organise public advocacy for MPs and Peers to call on the Government to extend and expand the Community Energy Fund, which has been a resounding success since it started last year, but current only applies to England and is due to run out of money in a matter of months.

With more from Current News looking at how the Great British Energy Bill was amended to include community energy:

An amendment to the Great British Energy Bill which went through on Tuesday evening will see the state-owned company support community energy initiatives. The government will amend the legislation that establishes its flagship energy company to reference energy projects that benefit local communities, enabling GB Energy to promote the growth of community-led projects.

The move follows advocacy from community energy campaigners led by environmental nonprofit Power for the People, a cross-party group of MPs and peers. The amendment was put forward by Philip Hunt, baron of Kings Heath and minister of state for the department of energy security and net zero (DESNZ).

Over 80 MPs supported the amendment, which was tabled by the Liberal Democrats. According to Power for the People, until last week government ministers had expressed support for community energy but declined to include it.

In a Peers Briefing delivered by the nonprofit at the start of this month, Power for the People pointed out that the company set up by the Bill would have no legislative requirement to support community energy, which has “faced years of stop-start policy that has prevented it from growing at the rates seen in other countries”.

Director of Power for the People David Shaw said of the amendment being made: “This support for the sector will give it and potential investors much-needed confidence. Community-run clean energy projects currently generate just 0.5% of the UK’s electricity but could – if enabled with policy decisions like this – be powering millions of homes and saving millions of tonnes of CO2 within the next ten years.” 

The GB Energy Bill is in the Report stage in the House of Lords, having passed through a second reading in the House of Commons in September 2024. It will now go back to the House of Commons and royal assent is expected soon afterwards.