MPs warn over community energy generation

MPs have cast doubts on Government targets to raise levels of community energy generation.

In a report by the Energy Security and Net Zero Committee, members said urgent action was needed to prevent community ownership of energy resources being left behind in the transition.

It says the current regulatory framework disproportionately disadvantages community energy projects compared to commercial developers, with no clear benefit to the overall energy system.

It also said the UK energy retail system acts as a block on local consumers taking advantage of reduced prices in local energy markets, and the cost and complexity of obtaining a supply license are prohibitive barriers for small community projects.

Bill Esterson MP, Chair of the Committee, said urgent action was now needed. “We’re asking the government to prioritise community energy projects for grid access, guarantee communities are offered the opportunity of a minimum 20% stake in local renewable energy development and make it easier for community generators to sell their energy locally.”