Success - Government puts community energy in the Great British Energy Bill

After six months of collective advocacy, on Tuesday evening community energy was included in the GB Energy Bill.

This happened at the House of Lords Report stage debate of the Bill, via an amendment made by the Energy Minister, Lord Hunt of Kings Heath. The amendment was welcomed by the Conservatives, Liberal Democrats, Greens, Crossbenchers and the Church of England’s representative, the Lord Bishop of Norwich. 

The Bill sets up the Great British Energy company, a much-heralded part of greenhouse gas emissions reduction plans. This company is expected to spend £8 billion on this over the next few years, making it vital that this legislation which sets it up ensures community energy’s growth is supported. The Bill now specifically enables the company to promote the growth of community-led energy projects alongside larger ones. 

Many of the Peers we have been working with in pushing for this change made supportive statements – below is a selection.

Crossbencher Baroness Boycott, the leading advocate Peer, said:

“I am very grateful for all the support of so many noble Lords, and I am thrilled to be standing here after so many attempts to get community energy into the statute books. I note the work of Power for People, which has done a fantastic job over the years to make this happen.”

The Green Party’s Baroness Bennett of Manor Castle said:

“I shall join in the general outbreak of harmony that has struck your Lordships’ House and welcome the government amendment on community energy. This is one more demonstration that campaigning works.”

The Lord Bishop of Norwich said:

 “It is good that the Government have introduced this amendment so that Great British Energy can facilitate, encourage and participate in local community energy projects.” 

And this is what the Minister had to say:

“Following positive discussions across the House, particularly with the noble Earl, Lord Russell [the Liberal Democrats’ Energy and Net Zero Spokesperson], I accepted that the role of community energy could be made explicit in the Bill. That is why this amendment has been tabled. It sets out a clear intention that local and community energy is important for Great British Energy and the Government.”

Whilst these positive words and this good result came from the House of Lords, they happened primarily because of the advocacy from so many people and groups, large and small, that had earlier created substantial cross-party support from MPs.

If you or your group helped secure this excellent result, thank you so much. 

We thank the Minister, Lord Hunt, for what he did. He made a particular effort to engage with us and many others to bring about this welcome result. 

The Community Energy Fund

At the debate on Tuesday evening, several Peers also heeded our request to push the Government Minister for clarity on the Community Energy Fund’s future: 

Earl Russell (Liberal Democrat) said:

“at the moment, the £10 million Community Energy Fund is oversubscribed. Some 100 projects are unable to get funding, and the money is due to run out in May. While I greatly appreciate getting community energy into the Bill, can the Minister provide clarity on what will happen with that fund? Is he able to put more money in? Is there an interregnum until GB Energy can start funding it? Ed Miliband gave very strong words in support of community energy but did not really answer my honourable friend’s point about the money. If the Minister can provide any more certainty or say whether this is being looked at, that would be appreciated.”

Baroness McIntosh of Pickering (Conservative) said:

“how do the Government intend to deal with the current uncertainty over the Community Energy Fund’s future? Is the Minister able to give us a guarantee of how that will pan out? Also, does he intend to take, or encourage GB Energy to take, early action to ensure that the fund will be matched by other funds, as I understand needs to be done, and that clear instructions on the above will indeed be set out in the strategic priorities for Great British Energy, as required by Clause 5?”

The Lord Bishop of Norwich said:

“I also support the comments made by the noble Baroness, Lady McIntosh, and the noble Earl, Lord Russell, in pressing the Minister about the Community Energy Fund. Some reassurance there would be very helpful.”

Lord Offord of Garvel (Conservative Shadow Energy Minister) said:

“My Lords, the topic of community energy was raised several times in Committee by noble Lords on all sides of the House, because it is a highly important aspect of energy provision. When in government, we introduced the Community Energy Fund, which provided funding to specifically target the community energy sector. So, I would concur with noble Lords that it is very important that communities are involved, as they are able to raise and solve issues that are unique to their local community.”

And this was the Minister’s response:

“On community funds, of course we recognise the important role that community groups play in our efforts to tackle climate change and the sector asks around future funding. Great British Energy will build on the Community Energy Fund by partnering with and providing funding and support to community energy groups to roll out renewable energy projects and develop, as noble Lords have said, up to 8 gigawatts of power. Further details will be set out shortly, but that is as far as I can go tonight.”

The Bill has one more House of Lords stage – 3rd reading, set for 25th February, and will then return to the Commons soon after for, probably, one last debate there. We plan to use these opportunities to organise public advocacy for MPs and Peers to call on the Government to extend and expand the Community Energy Fund, which has been a resounding success since it started last year, but current only applies to England and is due to run out of money in a matter of months.