This document sets out a high-level approach to the consideration, development and opportunity of Joint Ventures (JV) for public / private partnerships in energy projects. Developing a mutually beneficial relationship between the public and private sector working on energy related projects is expected to become increasingly critical.

Local Authorities are setting ambitious carbon reduction targets and local and regional economies developing Clean Growth plans can take advantage of the economic, social and environmental advantages decarbonisation can bring.

A core part of this decarbonisation work is changing the way we generate, distribute, consume and supply energy, and the efficiency with which we use it. Local Authorities are also increasingly participating in what is termed ‘municipal entrepreneurship' in a variety of arenas, including energy. The basis of this is to increase, maximise and retain value within the local authority area, shaping and creating markets and addressing market failures.

Commercial thinking within Local Authorities can apply directly to energy services and projects, many of which can have profound positive effects on outcomes for local people and businesses. A change in thinking and culture, as well as internal capacity, is required to realise the benefits of municipal entrepreneurialism; this can include working with Joint Ventures and other commercial and partnership models.

This guide has been produced to highlight the potential opportunity of joint venture working and enable local authorities, with the support of Energy Hubs, to attract investment to deliver local and regional energy projects at a greater scale and scope. Depending on the partner(s) selected, as well as finance they can bring expertise in de-risking, delivery and long term stewardship of projects.

The intended outputs and outcomes that have shaped the report are displayed below. A key aim is to help local authorities explore and develop Joint Ventures that are appropriate, effective and sustainable. The partnership approach can deliver projects in combination with each other and/or in a portfolio approach to deliver cost efficiencies, stronger commercial performance, less disruption, scale and a less siloed delivery model. 

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