Baronesses and Lords join forces with supportive MPs
A cross-party group of Baronesses and Lords have thrown their weight behind the 317 MPs backing our campaign for new legislation to enable dramatic growth in community-owned renewable energy generation.
Baroness Boycott (Crossbench), Baroness Bennett of Manor Castle (Green), Lord Lucas (Conservative), Lord Teverson (Liberal Democrat) and Baroness Young of Old Scone (Labour) have written to the Energy Minister, Lord Callanan, rebuffing the Government’s current stance and asking for talks on proposed amendments to enable community energy generation to the Government’s Energy Bill.
This follows each of these Peers (the term for members of the House of Lords) supporting such amendments at the Energy Bill’s most recent debate, back in December. Another debate and vote stage is due in the Lords in the coming weeks. We hope that the legislative change we are calling for will be included in the Energy Bill.
We are delighted by this strong display of House of Lords cross-party support. A copy of the letter is below.
Lord Callanan
Department for Energy Security and Net Zero
1 Victoria Street
London
8 February 2023
Dear Martin
We write regarding the prospect of the mechanism contained in amendments 237 and 238 tabled to the Energy Bill at Committee Stage, returning at Report Stage of the Bill.
The intention of this mechanism is to enable local, especially community-owned, renewable energy generation. Whilst we welcome the various instruments that you mentioned at the debate and in your subsequent public letter of 22 December 2022, such as the Supplier Export Guarantee, these have led to extremely modest levels of growth in community-owned renewable energy generation.
In 2017 community energy scheme capacity accounted for 249 megawatts. This had only risen to 331 megawatts in 2022 – a mere 0.5% of UK generating capacity.
Numerous studies have found the potential growth to be far higher. The House of Commons Environmental Audit Committee showed in its community energy inquiry that this figure could be nearly twenty times more, but only if local supply is enabled. The electricity export and supplier services mechanism laid out in amendments 237 and 238 would do this.
Furthermore, this is a market solution. It is not a subsidy. The intention is to adjust the rules governing the market in order to enable local supply.
Regarding the Community Energy Contact Group, we are pleased to note that the Chair, Peter Capener, is fully behind this proposed mechanism in amendments 237 and 238 and is one of the expert group convened by Power for People and led by Nigel Cornwall and Dr Jeff Hardy, who assisted in devising them.
We were very heartened to see that the government commissioned Net Zero Review authored by Rt Hon Chris Skidmore MP, published on BEIS’s website on 13th January, recommends that the Government adopt the Local Electricity Bill. Amendments 237 and 238 are based on that Bill and public support for the nationwide campaign behind it runs high, which has led to 316 Members of the House of Commons, including 123 of your Conservative colleagues, supporting it.
It is because of this situation that we are reaching out. It is our hope that we can engage constructively with you and your department in order to come to an agreement on a way forward that will achieve the potential for substantial growth in community-owned renewable generation.
Could we please, therefore, meet before the Energy Bill’s next debate to discuss amendments to establish a local supply mechanism that we might all agree on?
Yours sincerely
Baroness Boycott, Baroness Bennett of Manor Castle, Lord Lucas, Lord Teverson and Baroness Young of Old Scone
Below are quotes from Lords and Baroness’ that spoke in favour of our amendments at the Energy Bill’s Report Stage on 17th, April:
Baroness Boycott, Crossbench: “In the midst of an energy crisis, when cheap and clean home-produced energy has never been more vital, as we have heard in this debate, we are far behind where we could be with the amount of small-scale renewable energy, especially community energy schemes, which are simply community-owned and community-run renewable energy projects.“
Baroness Bennett, Green Party: “Amendments 134 and 135 are about community energy, which is where people can get together as a community, decide what they want their local energy system to look like and deliver it. There is no need for any involvement from Westminster or big multinational companies; it is a chance for communities to get together.”
Baroness Young of Old Scone, Labour: “To echo the noble Baroness, Lady Boycott, we are not seeking subsidy; we are looking for a fair price varied by government, as advised by Ofgem—an increased price, perhaps, where schemes need to be encouraged and a reduced price, perhaps, if scheme growth is going gangbusters. It is about a guaranteed floor price, similar to the Contracts for Difference from which other renewable sectors benefit.”
Baroness Meacher, Crossbench: “The main thing is that these community energy projects need to be able to sell their energy to big suppliers in the locality—those with more than 150,000 customers was the figure quoted, I think. So there is very strong support for these amendments and I hope the Minister will be able to accept them. I cannot see any reason why not: it is not going to cost the Government anything.“
Lord Teverson, Liberal Democrat: “The [community energy] schemes as put forward are not a kind of feed-in tariff regime: they are really looking for stability of price and are not around subsidy. I just say to the Minister that the Government’s overall target is decarbonisation of the grid by 2035: let communities play a big part in that, because one thing that is really important here is that community schemes allow for communities, individuals, households, families and small businesses to participate in the decarbonisation of our economy and net zero.“
Baroness Blake of Leeds, Labour: “Let us give confidence to local people and communities by developing the framework for the growth of communities and smaller-scale energy schemes. It is regrettable that more progress has not been made so far. The role of Ofgem in this, giving clear methodology and quality standards, is essential and will give the credibility that is needed, as the noble Baroness, Lady Boycott, so eloquently pointed out. Through the involvement of local communities, we are asking for a more effective and better targeted delivery of national priorities; and we all know that we need more determination to deliver on the ground.“