1st Report - Get connected: How community energy can turbocharge the transition

The Government should, as a matter of urgency, provide clearer guidance on the application of procurement rules, and if necessary, reform the rules themselves, to make it easier for local authorities and community energy 45 organisations to work together and … Read more The Government should, as a matter of urgency, provide clearer guidance on the application of procurement rules, and if necessary, reform the rules themselves, to make it easier for local authorities and community energy 45 organisations to work together and support Power Purchase Agreements. We recommend a national policy framework to align applications of procurement rules and incentivise public bodies to procure community energy through PPAs. The framework should also attach conditions to GB Energy Funding grants to capitalise on synergies from strategic partnerships between local authorities and community organisations, reflecting a practical commitment to local and community energy. (Recommendation, Paragraph 21) Show less

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The Government should replace the Smart Export Guarantee with a Community Energy Export Guarantee, with a negotiated floor price guaranteed over 15–20 years and underwritten by the Government. (Recommendation, Paragraph 22)

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The Government must ringfence a defined proportion of the £1bn Local Power Plan funding specifically for community-owned (not merely “local”) projects, with a published GW sub-target. (Recommendation, Paragraph 23) Local supply

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We recommend that the Government produces, within six months, a regulatory framework to allow community energy generators to sell electricity to local consumers. Modification of P441 is a good step to clarify rules and uncertainties and should be approved by … Read more We recommend that the Government produces, within six months, a regulatory framework to allow community energy generators to sell electricity to local consumers. Modification of P441 is a good step to clarify rules and uncertainties and should be approved by Ofgem for a swift implementation in the summer 2026. It, however, does not accommodate all types of local supply and require the participation of licensed suppliers, which is currently scarce. (Recommendation, Paragraph 31) Show less

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If P441 is not approved and implemented by the end of summer 2026, the Government should bring forward legislation equivalent to the Local Electricity Bill to establish a proportionate local supply licence. (Recommendation, Paragraph 32) 46 Grid connections Read more If P441 is not approved and implemented by the end of summer 2026, the Government should bring forward legislation equivalent to the Local Electricity Bill to establish a proportionate local supply licence. (Recommendation, Paragraph 32) 46 Grid connections Show less

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The 8 GW target explicitly recognises the central role of community energy in the Clean Power Mission. A commitment to delivering it requires shifting away from ownership agnosticism to grant community energy a special status and help community energy projects … Read more The 8 GW target explicitly recognises the central role of community energy in the Clean Power Mission. A commitment to delivering it requires shifting away from ownership agnosticism to grant community energy a special status and help community energy projects navigate complex grid connection processes. The Government must immediately give Ofgem, NESO, DNOs, and GB Energy clear mandates to work in the delivery of the target. (Recommendation, Paragraph 49) Show less

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The Government must, this year, alter the National Planning Policy Framework to allow for community benefits from community energy to be material considerations in planning application processes. The current NPPF’s definition of community-led development would be a good starting point … Read more The Government must, this year, alter the National Planning Policy Framework to allow for community benefits from community energy to be material considerations in planning application processes. The current NPPF’s definition of community-led development would be a good starting point for determining how community energy could be prioritised within the Framework. We recommend that community energy policy uses this until a better, more comprehensive definition is put forward by the Government. (Recommendation, Paragraph 65) 47 Show less

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Energy planning is too important to hope that local planners have the capacity and knowledge to deliver to national targets. The Department for Energy Security and Net Zero must ensure stronger coordination between NESO high-level spatial planning strategies and local … Read more Energy planning is too important to hope that local planners have the capacity and knowledge to deliver to national targets. The Department for Energy Security and Net Zero must ensure stronger coordination between NESO high-level spatial planning strategies and local energy planning to ensure alignment between objectives. The government should allocate greater funding for dedicated roles within local authorities. (Recommendation, Paragraph 66) Show less

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The Government should legislate to make community ownership (as opposed to community benefit payments) as an express material consideration, distinguishing equity stakes from donations. (Recommendation, Paragraph 67)

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The Secretary of State should use the power granted by the 2015 Infrastructure Act to give individuals and/or communities the right to purchase a 20% stake in a renewable generation facility in their local area at a fair market price. … Read more The Secretary of State should use the power granted by the 2015 Infrastructure Act to give individuals and/or communities the right to purchase a 20% stake in a renewable generation facility in their local area at a fair market price. We recommend additional incentives to encourage commercial developers to constructively engage with community energy organisations and available support to community energy organisations to ensure shared-ownership arrangements are mutually beneficial. (Recommendation, Paragraph 80) 48 Governance and Coordination Show less

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The Government must incentivise collaborations between community energy organisations and local authorities to strengthen local and place- based governance. This energy transition “from the ground up “ will also strengthen engagement with local communities hosting large renewable energy infrastructure, which … Read more The Government must incentivise collaborations between community energy organisations and local authorities to strengthen local and place- based governance. This energy transition “from the ground up “ will also strengthen engagement with local communities hosting large renewable energy infrastructure, which DESNZ, NESO and GB Energy all emphasise. The Government should use successful community energy projects examples of the benefits of renewable energy to other communities and more widely as part of its communication of the benefits of the energy transition. (Recommendation, Paragraph 87) Show less

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The lack of a pricing mechanism that makes community energy projects financially viable is one of the biggest barriers to the future growth of the sector. The closure of the Feed-in Tariff significantly limited the opportunities for community energy organisations to develop renewable energy projects which generate enough revenue to …

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For the Government to achieve its ambition for community- scale rooftop solar in the achievement of the UK’s energy targets, it is essential to develop a stable price mechanism that makes selling electricity to the grid financially viable. Reliance on Power Purchase Agreements demonstrates the barrier that financial viability currently …

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Reliance on Power Purchase Agreements demonstrates the barrier that financial viability currently poses to the growth of community rooftop solar. For the Government to achieve its ambition for community-scale rooftop solar in the achievement of the UK’s energy targets, it is essential to develop a stable price mechanism that makes …

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Complex market rules are a major impediment to scaling up local supply and local energy markets. The supply regime cost and complexity of obtaining a supply license are prohibitive for small community projects and licence exemption rules are not fit for purpose. Partnerships between community energy organisations and licensed suppliers …

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The grid connection reforms process has not benefitted community energy. The regulatory framework disproportionately disadvantages community energy projects compared to commercial developers and jeopardises their financial viability. The lack of a regulatory definition, ownership agnosticism and the absence of clear mandates for the delivery of the 8GW raises concerns as …

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The lack of progress towards the delivery of the 8GW of community energy by 2030 highlights the need for the Government to reduce the disproportionately high costs and long delays community energy projects face when seeking grid connections. (Conclusion, Paragraph 48)

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The Government and Ofgem must agree a regulatory definition and clear criteria for community energy projects to allow them to be differentiated from commercial developers. (Recommendation, Paragraph 50) Planning

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The National Planning Policy Framework needs to be reviewed to enable local authorities and planners to differentiate community energy projects from commercial developers in planning application processes. There is a need for more clarity on what projects should be prioritised and supported and whether local planners might consider local benefits …

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GB Energy’s new advisory service does not contain a dedicated planning function, despite the planning system being one of the most significant barriers our evidence identified. Our view is that it should. Planning constitutes both legal and technical expertise as referenced in the Secretary of State’s letter of instruction to …

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There is much appetite for shared ownership, but careful consideration is needed to ensure contracts are mutually-beneficial and prevent free-riders. Scotland and Denmark provide examples of where the voluntary approach to shared ownership has failed and where mandating shared ownership has had positive impacts for community energy, respectively. However, mandating …

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The governance of the sector is rapidly evolving with the influx of new actors such as NESO and GB Energy but their roles and interactions with diverse community energy organisations remain unclear. Too much focus on high- level planning and large-scale infrastructure risks neglecting the need for place-based approaches that …

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Community energy projects are very popular and can be used to demonstrate the value of a new project in a different community. They have the potential to demonstrate the value of renewables and can deliver cheaper electricity. A stronger alignment between the 8 GW target and the Department’s various objectives …

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Capacity building initiatives must be targeted and co-designed with community energy organisations to build on existing knowledge and expertise in the sector. Such an approach will ensure that interventions and support are guided by practices and context-specific knowledge and skills, rather than being informed solely by Whitehall or GB energy …

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