New model of public private partnerships must be forged to “bridge gap” between national ambitions, local action and community benefit for Local Power Plans, says thinktank

A new report by think-tank Localis has warned that the delivery of a successful Local Power Plan will require “concerted action” across all levels of government, including the production of legislation to “formalise” local area energy planning, and investment in local government skills programmes.

The report makes a series of policy recommendations to central and local government in order to ensure Local Power Plans – a key component of Great British Energy – drive the decarbonisation of energy at a local level.

The authors suggest that for the agenda to succeed, a new model of public-private partnerships (PPPs) will prove “crucial” for bridging the gap between national ambitions and local action, by mobilising resources, expertise and funding.

The report notes: “Local authorities play an essential role in achieving net zero, as a significant portion of UK carbon emissions fall within their scope of action.

“However, the approach from central government in recent years has been inconsistent, with support for councils to deliver on this agenda often underfunded and piecemeal.”

Localis observed that “multiple barriers” hinder the further deployment of renewable energy, including: technical challenges such as grid infrastructure unpreparedness and skills gaps within local authorities; financial obstacles such as high upfront costs and investor perceptions of risk; and political barriers such as potential public opposition and a lack of clear policy support.

To create the conditions for success at local level, the report recommends central government:

• produce legislation to formalise local area energy planning, to ensure new development contributes to the energy transition, whilst gaining a clearer national picture of future grid demand
• consolidate funding streams for clean energy projects in local areas
• establish regional energy data centres to help local authorities make evidence-led plans
• invest in local government skills programmes to allow councils to recruit, train and retain staff who can engage with the energy market
• provide local authorities with support in procurement and contracting to access complex markets
• provide capacity support for planning applications, to accelerate the planning process for new local infrastructure.

Looking at overcoming political barriers at a local level, the authors warn that public opposition can hinder renewable energy deployment – and therefore councils will need to “balance public engagement with resource availability and the necessity for renewable energy development”.

The report adds: “Quantifiable benefits, such as job creation, local economic multipliers, and overall reductions in carbon emissions, must be documented and published to maintain public trust.”

Further, the report recommends that the Government consider “shifting the capital burden of renewable infrastructure from household bill levies”, to keep local residents onside with plans to overhaul energy generation.

It also urges the Government to consider the reintroduction of feed-in tariffs, to help enable participation.

Under the Feed-in Tariff scheme, households or businesses receive payments for electricity generated by eligible installed systems - eg. solar or wind - to promote the uptake of renewable and low-carbon electricity generation.

Jonathan Werran, Chief Executive of Localis, said: “The recent announcement of Great British Energy’s first major project to put rooftop solar panels on around 200 schools and 200 NHS sites has fired the starting gun in the race to empower local communities to generate their own clean energy this parliament.

“However, if we are serious about unleashing the full power of the local state, it is clear Local Power Plans will require a new model of strategic, long-term energy partnerships to transform how we decentralise and decarbonise the UK’s energy system."

He added: “By fostering direct collaboration among local energy stakeholders, these new model partnerships could bypass traditional barriers to innovation such as fragmented decision-making structures and lengthy tender processes, allowing for more agile and resilient responses to local energy challenges, empowering communities, and reinvesting profits locally.

“To make these work at the level of place, central government should build on successful examples of strategic energy partnerships and produce a contracting framework for local authorities to procure strategically for the long-term benefit of their communities.”

Lottie Winson