Up to £1 billion of new funding will support locally-owned clean energy generation projects, the UK Government says.
Great British Energy and the UK Government have published the Local Power Plan, backed by funding of up to £1 billion, to help support projects such as solar on community buildings like libraries, leisure centres and working men's clubs.
Great British Energy has already invested nearly £9.5 million into community and public sector energy projects across Wales over the last year, with the Welsh Government overseeing delivery of the funding.
The UK Government said this is delivering projects across Wales, including rooftop solar installation for schools in Wrexham and Newport.
A new solar project has been announced at the Big Pit Museum in Blaenavon, which is estimated to save more than £280,000 in energy costs over its lifetime. Another new project at the Road Management Depot in Neath will provide lifetime savings of more than £910,000 for the local council.
The funding is also supporting the new Ymestyn scheme, which provides funding for public sector and communities to raise the ambition of their decarbonisation work. This will help the public sector and communities to complete projects such as providing solar panels for schools, developing solar canopies for public buildings and battery energy storage for communities.
The Local Power Plan is “a transformative strategy to unleash the untapped dynamism, resources and enthusiasm of our communities”, the UK Government said.
Welsh Government Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans said:
“Community ownership and investment in renewable energy runs deep in Wales, and our Welsh Government Energy Service, Trydan and Ynni Cymru all show our commitment to scaling this up.
“This investment, delivered in partnership with Great British Energy, builds on that proud tradition. Projects like the Big Pit Museum solar installation show what's possible when we invest in renewable generation in our communities. We'll continue working together to ensure more Welsh towns and villages share in the benefits of clean energy.”
Great British Energy CEO Dan McGrail said:
“Communities are at the heart of Great British Energy’s mission. Local and community projects create cleaner, more secure and more affordable energy for our communities.
“We are investing up to £1 billion into community and local energy projects so that people up and down the country can feel the benefit of public ownership with purpose.”
Secretary of State for Wales Jo Stevens said:
“This transformative plan means that communities in every part of Wales can take charge of their own energy supplies, helping to cut bills and providing a valuable source of revenue.
“The UK Government is working with the Welsh Government to make sure everyone in Wales benefits from the revolution in clean energy, whether that’s through creating jobs in the growing clean energy sector or investing in shared community energy projects.”
Great British Energy aims to support over 1,000 clean energy projects, helping to deliver clean power by 2030 while improving energy security for the whole country and protecting billpayers. The projects will be developed and led by communities or local government who best know how to deliver for their area or alternatively allow people to buy shares in nearby larger-scale renewable projects.
The Local Power Plan will help address barriers currently holding back many community energy projects which range from financial and regulatory to lack of commercial or technical expertise.
People can express their interest in funding and advice on building clean energy projects in their town or village through the Great British Energy website. Great British Energy will continue working with the Welsh Government to complement existing support and identify new opportunities for collaboration.
Great British Energy and the UK Government plan to boost community energy ownership through:
- Direct funding – Strategically investing up to £1 billion in community energy groups, and local authorities including via grants and loans. The schemes will launch later this year. Individuals will also be able to get advice from Great British Energy on setting up clean energy projects. Grants will be targeted at underserved areas or where there has historically been low take up of community energy.
- Capability building – Building up the capacity and skills required for the sector, acting as a co-ordinator for community energy groups and local government.
- Business model development – Developing investable business models, with the community energy sector, to reduce reliance on grant funding and increase self-sustainability.
- Regulatory changes – Consulting on whether to mandate the offer of shared ownership of clean energy projects and collaborating with the regulators on how to make it easier to share generated power locally.
It follows Great British Energy, alongside National Wealth Fund, backing the Erebus Floating Offshore Wind Farm off the coast of Pembrokeshire. The project was recently successful in the UK Government’s AR7 allocation round alongside Awel y Môr Offshore Wind Farm, off the coast of Rhyl, Denbighshire, supporting thousands of future jobs and millions in investment for Wales.
Leanne Wood, Co-executive Director of Community Energy Wales, said:
“It's great to see the huge, untapped potential of Community Energy recognised in the Local Power Plan, with material commitments to make sure local people and places can lead a fair transition to a low carbon energy system across the UK.”
Ben Ferguson, Co-executive Director of Community Energy Wales, said:
“Our members in Wales are ready to grow their ambition with this support from Great British Energy, welcoming and supporting new and emerging community energy enterprises to participate in the transformative benefits of community ownership of distributed and democratising energy technology.”
Jess Hooper, Director of RenewableUK Cymru said:
“Wales is already leading the way on locally owned renewable energy, with the Welsh Government committed to delivering 1.5GW of locally owned renewable capacity by 2030.
“By supporting communities to generate and own their own clean power, we can strengthen Wales’ energy security, reduce reliance on expensive imported gas, and ensure that the energy transition delivers lasting benefits for people and communities across Wales.”
RenewableUK's Head of Policy Steven Agnew said:
“Poll after poll has shown that people are overwhelmingly in favour of new clean energy projects, and that 73% of them support onshore wind farms. We know there are communities who want to go a step further by building their own clean energy projects too. Developers are already collaborating successfully with communities on projects such as the Lawrence Weston wind turbine in Bristol. The involvement of Great British Energy will help more communities take advantage of these opportunities.
“Supporting local communities to generate their own clean power will allow them to benefit directly from renewables whilst enabling them to play a key role in strengthening our energy security. As these new projects come online, they will push more expensive gas generation off the system, cutting electricity bills for everyone.
“The launch of the Local Power Plan is taking place on the same day as the announcement of the results of the latest auction for new onshore wind projects to go ahead. Onshore wind is one of the UK's cheapest sources of new power, so the 1.3GW of new capacity we have procured today will help to drive down costs further for billpayers”
Phil Williams, Operations Director of Cambrian Village Trust, said:
“Cambrian Village Trust’s journey from black to green honours our mining heritage while shaping a sustainable future. Our former coal tips are now a vibrant Country Park, home to walks, wildlife, and a community café powered by our own micro‑hydro system.
“By generating renewable energy on our doorstep, we’re creating community wealth that people see and feel every day – from solar panels running our buildings and EVs to surplus power supporting wider networks.
“Working with Rhondda Cynon Taf County Borough Council on a second hydro scheme, our vision is to create Wales’s first fully self‑sustaining football ground, proving that community energy can transform even the most deprived areas for the benefit of all.”
