The Government has launched £30 million of funding for community-owned clean energy projects across the UK as the first wave of Great British Energy's Local Power Plan.
Local authorities and community energy groups can apply for support to develop projects including solar panels on public and community buildings, village-owned wind farms and hydro schemes.
The £30 million package, announced on Thursday 17 September, is described by the Government as the first downpayment on up to £1 billion of Great British Energy funding intended to support more than 1,000 local and community-led clean energy projects.
What is included in the £30m package?
The funding announced today is divided between several programmes covering different parts of the UK.
- £20 million Community Fund: grants for community organisations in England, Wales and Northern Ireland to test, develop and build community-owned clean energy assets.
- £5 million Partnerships Grant: funding for English local authorities and community energy partners to accelerate joint clean energy projects.
- £1.8 million for Scotland: Great British Energy funding for the Scottish Government's existing community energy support schemes under the Community and Renewable Energy Scheme.
- Up to £2.9 million for advice services: support for organisations providing specialist advice to community energy groups in England, Wales and Northern Ireland.
Applications for the new grants in England, Wales and Northern Ireland opened on 17 September.
First wave of £1bn Local Power Plan
The Government announced the wider Local Power Plan in February, committing Great British Energy to provide up to £1 billion during the remainder of the Spending Review period.
The plan aims to support more than 1,000 local and community energy generation projects across the UK and expand community ownership of renewable energy.
The £1 billion figure is therefore a longer-term funding commitment rather than money being distributed immediately. The package launched today totals £30 million.
Projects supported through the Community Fund must demonstrate that the community will hold a defined legal and financial interest in the energy project and that a defined share of its benefits will remain with or be delivered to the local community.
Communities could be offered stakes in renewable projects
The Government has also confirmed that it intends to publish further details this autumn on proposals allowing community energy groups to be offered ownership stakes in renewable energy developments.
The aim is to create partnerships between developers and communities so that part of the proceeds generated by renewable energy projects flows back into the areas where the infrastructure is located.
Ministers say similar forms of community ownership are already widely used in countries including Germany and Denmark.
Burnham says communities should benefit
Prime Minister Andy Burnham said the programme was intended to give communities greater control over the clean energy projects developed in their areas.
He said the projects could range from solar panels on local libraries to community-owned wind farms, with local people able to benefit financially from the energy transition.
Energy Secretary Miatta Fahnbulleh said the Government wanted communities to receive the benefits of locally generated clean energy through lower costs and reinvestment of profits.
Great British Energy chief executive Dan McGrail said the grants would provide community organisations and councils with practical support to get renewable projects off the ground.
More than 150 public-building projects already operating
The Government says more than 150 Great British Energy-supported renewable projects have now begun operating on public buildings within England's Mayoral Combined Authorities.
Earlier funding included up to £16 million for mayoral authorities, with 157 rooftop solar projects installed on buildings including fire stations and leisure centres.
The Government estimates those projects, together with further installations, could generate up to £50 million in lifetime energy-bill savings for local public services.
Funding opens across UK
The latest £30 million package marks the first funding rollout under the wider Local Power Plan since its publication earlier this year.
The Government's stated objective is to increase the number of renewable energy projects owned or partly owned by communities and local authorities, allowing a greater proportion of financial benefits to remain in the areas where energy is generated.