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Enabling Community Energy
01 July 2021
Lead MP
Wera Hobhouse
Bath
Lib Dem
Responding Minister
Amanda Solloway
Tags
EconomyClimateEnergy
Word Count: 12855
Other Contributors: 14
At a Glance
Wera Hobhouse raised concerns about enabling community energy in Westminster Hall. A government minister responded.
Key Requests to Government:
I ask the Minister to engage with me and other lead Members supporting this reform, and the campaigners and experts behind it. Together, we can get the detail right and implement it quickly and effectively, making a large contribution to producing clean power and engaging people in our ambition to reach net zero. The speaker urges not to give up and to continue working towards unleashing the potential for community energy and offering support in principle for local supply.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The evidence of the climate crisis is alarming, and the UK is not on track to meet its emissions reduction targets. Currently, only 12% of power comes from renewable sources, with progress primarily in electricity production but significant failure in other sectors like heating, transport, agriculture, heavy industry, shipping, and aviation. The potential for community energy could be enormous: a report suggests it could grow by 12-20 times to power 2.2 million homes and save 2.5 million tonnes of CO2 emissions annually. However, the existing energy market rules make the cost for setting up a licensed energy supply company insurmountable, with initial costs exceeding £1 million. There is widespread support for community energy across the nation. However, it was disappointing not to receive Government consent to the principle at the heart of the Local Electricity Bill—the right to local supply.
Alan Whitehead
Lab
Southampton Test
He emphasised the benefits of community energy, such as fostering local ownership and behavioural change towards low-carbon living. However, he highlighted significant barriers including high funding costs, regulatory issues, and a lack of support from Ofgem and the Government for geographically situated licences. Alan Whitehead also criticised the absence of a government strategy to promote community energy, noting that only about 10% of projected local energy supply has been achieved due to these barriers.
Angus MacNeil
SNP
Na h-Eileanan an Iar
Mr. MacNeil advocated for a shift towards more localized energy production, citing Scotland's potential for renewable energy and the inefficiency of current distribution systems in remote areas. He noted that local generation could address high transmission costs and benefit communities economically.
Ben Lake
PC
Ceredigion Preseli
Welcomed the cross-party support for enabling greater community energy, citing specific benefits like reduced energy bills (£2.9 million last year) and £3.1 million-worth of community benefit expenditure.
Darren Jones
Lab
Bristol North West
Darren Jones discussed the local initiative of Ambition Lawrence Weston, which aims to build a wind turbine community-owned project in his constituency. The turbine is expected to generate enough low-carbon energy for 3,500 homes and reduce CO2 emissions by nearly 2,000 tonnes annually. However, he pointed out that residents cannot benefit from lower energy costs due to regulatory barriers. Jones highlighted the long process of securing funding and permissions needed for such projects, emphasizing the need for supportive policies.
Duncan Baker
Con
North Norfolk
Community energy plays a vital role in decarbonisation efforts by enabling local communities to contribute through innovative schemes and income generation. The potential of community energy is vast, with the ability to fill the energy gap, particularly in rural areas facing supply constraints and fuel poverty.
Jeremy Wright
Con
Kenilworth and Southam
Jeremy Wright commended the initiative to locally generate energy, highlighting its advantages in terms of sustainability, efficiency, and community engagement. He noted that despite having a legal right to local energy suppliers for 20 years, this potential remains largely unrealised due to high entry costs and restrictions on direct sales to customers. He mentioned examples from his constituency such as the Napton Environmental Action Team and Harbury Energy Initiative. Wright urged the Government to support community energy projects by addressing these obstacles through tax incentives and ensuring fair access to cable networks.
Jim Shannon
DUP
Strangford
The MP highlighted the importance of community energy in achieving decarbonisation goals and supporting localised renewable energy initiatives. He noted that Northern Ireland had only two examples of such schemes, despite the UK having 424 community energy organisations. He praised recent innovations by Northern Ireland Community Energy, which raised £150,000 to finance its projects.
Mick Whitley
Lab
Cynon Valley
The Member for Cynon Valley stressed the importance of the Local Electricity Bill in addressing climate change targets. He highlighted that community energy projects currently serve more than 358,000 people but are hindered by high costs and regulatory barriers. Mick Whitley called for support to remove these obstacles and accelerate the growth of renewable energy generation.
Mohammad Yasin
Lab
Bedford
Bedford Borough Council's commitment to becoming carbon neutral by 2030 highlights the importance of community energy projects. Mohammad Yasin emphasised that local authorities and communities are eager for more support from the Government in implementing such initiatives.
Patrick Grady
SNP
Glasgow Cathcart
Community energy initiatives like the Glasgow Community Energy co-operative are vital for local empowerment, reducing fuel poverty, and contributing to climate change goals. The Scottish Government supports such efforts but faces challenges due to changes in UK subsidies, including the closure of feed-in tariff schemes.
Peter Aldous
Con
Bury St Edmunds
The hon. Member introduced the Local Electricity Bill to remove regulatory barriers for community energy projects, highlighting a lack of progress despite an appetite from local councils and communities.
Simon Baynes
Lab
Clwyd South
Mr. Baynes discussed his interest in community energy, citing the example of the Corwen community hydro scheme and its success in generating renewable energy locally. He highlighted the potential for further projects and praised local landowners like Lord Newborough for supporting such initiatives.
Simon Fell
Cons
Copeland
The Member for Copeland praised the Local Electricity Bill, highlighting its potential to create new local electricity markets and lower prices for consumers. He noted that only around 278 MW of generating capacity from community renewable energy is currently in place compared to a projected 3,000 MW by 2020. Simon Fell also discussed specific projects like Hobkin Ground Farm and the Logan Gill hydro project which could benefit significantly from enabling local supply.
Wendy Chamberlain
Lib Dem
North East Fife
Chamberlain highlighted the importance of community engagement in transitioning to a low-carbon future, citing examples such as Sustainable Cupar and the University of St Andrews. She emphasised that communities should not be blocked from acting when they are ahead of government policies and praised systems like wind guilds in Denmark for empowering citizen ownership.
Government Response
Amanda Solloway
Government Response
It is a pleasure to serve under your chairmanship, Sir David. The Government recognise the valuable role of community and local renewable energy projects in supporting national net zero targets. There are currently 424 active community energy organisations across the UK, contributing to clean growth and raising awareness. To support these projects, the Department funds the £10 million rural community energy fund, which has awarded over £4.5 million in grants since its launch in 2019. The Government are considering future plans for community energy in the net zero strategy, set to be published later this year. The Minister acknowledges that while there is flexibility in Ofgem's regulatory framework to allow local energy suppliers, high costs can act as a barrier to entry. However, substantial changes could distort the market and raise consumer costs. The Government are supportive of developing new business models and will review the overall energy retail market regulatory framework to ensure it allows for these new models. The Minister commits to engaging closely with community energy stakeholders during this process.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.