The UK government and Great British Energy have launched the Local Power Plan, pledging up to £1 billion to fund community-owned clean energy projects across the country. This marks the largest public investment in community energy in UK history, aimed at enabling communities to generate and control their own energy while creating local wealth and reducing energy bills. The plan targets a wide range of community buildings, from libraries and leisure centres to places of worship and social clubs, aligning with the government’s Pride in Place agenda to revitalize towns and cities.
Community energy ownership is positioned as a transformative tool, allowing local people to benefit financially from renewable energy while fostering pride, cohesion, and long-term prosperity. Examples from across the UK, including Lawrence Weston in Bristol, the Isle of Skye Cooperative, Westmill in Oxfordshire, and the Geraint Thomas Velodrome in Wales, illustrate the impact of community-owned projects. Internationally, countries such as Germany show that citizen-owned energy can represent a significant portion of renewable generation, but in the UK, growth has been constrained by limited funding, expertise, and government support—gaps the Local Power Plan aims to address.
The programme will support around 1,000 clean energy projects led by communities or local authorities, with options for individuals to buy shares in larger renewable projects. Investments will cover financial support, capability building, business model development, and regulatory improvements to facilitate shared ownership and local energy generation. Great British Energy will act as a “one-stop shop” for guidance, technical expertise, and access to grants or loans, with an initial focus on underserved areas or regions with historically low community energy uptake.
Community and local government leaders across England, Scotland, Wales, and Northern Ireland have welcomed the initiative, highlighting its potential to cut bills, create local jobs, and strengthen energy security. Mayors and regional authorities emphasized that community energy is central to achieving low-carbon, resilient energy systems while ensuring the benefits of renewables stay within local areas. Industry bodies and NGOs noted that this approach reinforces energy justice, boosts local employment, and promotes wider participation in the clean energy transition.
Early investments have already been made, including £5 million for 53 new community energy projects in England, over £16 million supporting Mayoral Strategic Authorities, and £21.5 million for projects across Scotland, Wales, and Northern Ireland. Additional funds, including £255 million in matched funding, have supported schools, NHS sites, and military installations to adopt renewable energy, reduce bills, and improve sustainability. Community energy groups report that projects provide both tangible financial returns and increased local pride, empowerment, and cohesion, demonstrating the broader social and economic benefits of community ownership.
The Local Power Plan is designed to overcome barriers such as financial constraints, technical expertise gaps, and regulatory hurdles, ensuring communities can participate fully in the energy transition. With dedicated partnerships, funding, and support, the plan aims to give every UK community the opportunity to own or co-own clean energy assets by 2030, creating a fairer, greener, and more resilient energy system that directly benefits local people and places.
