Community Energy Schemes — [Mr Clive Betts in the Chair]

He commended the debate's focus on community energy and its benefits for net zero and local empowerment. He highlighted barriers such as high setup costs, outdated regulations, and removed feed-in tariffs hindering projects. He supported the Local Electricity Bill to facilitate alternative solutions and reform grid charging systems. Brown pointed out that community energy currently accounts for less than 0.5% of UK total but has potential for significant growth. He also mentioned Scottish Government progress undermined by UK cuts, urging urgent action.

Supports the idea of a local community energy Bill, highlighting that people should be able to sell locally produced energy. Criticizes current barriers such as planning permission costs and grid constraints. Emphasises the need for positive government support and changes to the grid system to facilitate local energy projects.

The difficulty in promoting community energy may lie with Ofgem, which is not enthusiastic about market diversity; Orkney and Shetland have high fuel poverty rates and excess renewable energy that could be better utilised.

The hon. Member for Ceredigion Preseli supported the notion of community buy-in, arguing it could lead to a better understanding among consumers about energy generation and potentially bring about beneficial behavioural changes.

Community energy should be seen as a core part of the energy mix rather than an add-on, highlighting Germany's success in fostering community-owned energy companies through rights to sell energy to others. Ms Lucas highlighted the need for community energy generation to decarbonise the UK power system by 2035. She cited a report from the Environmental Audit Committee which stated that the sector could grow up to twenty times by 2030 and power more than two million homes, saving 2.5 million tonnes of CO2 annually. She pointed out that community energy generation currently accounts for less than 0.5% of total UK electricity production and there has been no growth in the past six years due to outdated regulations.

The hon. Member for Wantage expressed support for community energy, highlighting its importance in bringing people onboard for the transition to net zero and ensuring that local benefits are reaped from renewable energy projects.

The Government's argument that new suppliers can enter the market is challenged by the fact that only three Licence Lite applications have been granted since 2015 and none has been applied for since 2019, suggesting a need for changes to make it easier for new suppliers. The hon. Member for Leeds South highlighted the difficulties faced by those wishing to contribute to renewable energy generation, citing issues with grid connection and the need for a different model of energy distribution. He suggested that community buy-in could facilitate easier approval for infrastructure projects and referenced examples from Germany as evidence that such models can be successful.

While the right to local energy exists, financial obstacles make it difficult for communities to pursue this option, akin to having a legal right to buy a Ferrari but lacking the means to do so.

Emphasised the importance of community energy schemes for local electricity strategies and renewable energy provision. Highlighted Northern Ireland's limited number of community energy organisations compared to the rest of the UK, citing cost as a major barrier for investment. Called for a sustainable plan to support community energy projects. The hon. Member for Strangford mentioned a small tidal scheme in Newtownards that helped reduce costs and keep the club running, suggesting this process could be replicated across the UK.

Communities often oppose renewable energy projects, particularly onshore wind. Ownership by the community can help address this concern and bring people along with the transition to net zero.

Mr Betts, intervening on Ms Lucas, emphasised that reinforcing the grid is crucial for community energy projects and other initiatives to succeed. He stressed that without improvements to the grid infrastructure, efforts in local electricity generation would not materialise.

Local energy generation can enhance resilience against climate change-related power outages and contribute to meeting emissions targets.

Noted that widespread adoption of electric vehicles in Northern Ireland could strain the grid and suggested local generation for charging networks as a solution, referencing successful models in Israel and America.

The hon. Member for Waveney agreed with the need for more diverse players in the energy market, suggesting that smaller suppliers could be part of a solution to future energy demands. He emphasised the importance of community energy in local contexts. He highlighted the need for regulatory reform to support community energy schemes, suggesting Ofgem should provide guidance and establish a right to supply. He also pointed out that deployment of community energy projects was at a record low last year. Expressed gratitude to the Minister for outlining obstacles and asked if he and the Government are committed to overcoming those obstacles so as to achieve tangible progress when they reconvene in a few months.

Local energy supplies could support local jobs, fund new facilities in communities, and contribute to more renewable energy infrastructure. Currently, community energy generates 0.5% of our electricity, but it has the potential to grow by at least 20 times by 2030.

Clause 3 of the Bill, which would require Ofgem to ensure regulation is proportionate to the size of local generators' operations, could significantly increase the percentage of community energy projects that succeed.