Plans unveiled to allow councils to sell renewable energy
Councils across the UK could be allowed to sell electricity generated from renewable sources under new proposals published for consultation last week (March 2) by the Department of Energy and Climate Change.
Currently, the Local Government (Miscellaneous Provisions) Act 1976 includes a provision preventing local authorities from selling electricity generated from, for example, a council-owned wind farm.
But, under plans that were first mooted in last February’s Heat and Energy Savings Strategy, the department said that removing the provision could encourage the development of local renewables projects.
In a note accompanying the consultation, it said: “Allowing local authorities to sell electricity generated by them from renewable sources would encourage the development of local renewable electricity projects by those local authorities that are well-placed to undertake such projects either on their own or in partnerships.”
Under the proposals, local authorities would also be able to benefit from Renewables Obligation Certificates (ROCs) or Feed-in Tariffs if their projects met the qualifying criteria for these policies.
In the consultation document, the Department of Energy and Climate Change (DECC) noted that some local authorities are now starting to consider developing renewable generation projects, either themselves or in partnership, as part of their role in addressing the challenges of climate change and meeting their commitments to sustainability.
Local authorities in Woking, Southampton, Birmingham and Oxford have already been examining renewable energy generation schemes (see this NewEnergyFocus.com story).
DECC said that any changes as a result of the consultation would be made through secondary legislation – by DECC in respect of England and Scotland and by Welsh Ministers in respect of Wales.
LGA
The Local Government Association (LGA) welcomed a measure it saw as offering more flexibility for councils to “get the job done,” although it noted that while some are already investigating the possibilities, some councils may not want to be involved in renewable schemes.
Abigail Burridge, senior policy officer at the LGA said: “Generally, the LGA is supportive of additional powers for local authorities to reduce their carbon emissions.
“This is about having additional freedom to be able to look at their local area and decide the best way to decrease carbon emissions and be able to install that infrastructure.”
The consultation closes on June 2.