This guide has been commissioned to help both members and officers of councils who are considering asset ownership to understand the potential risks and benefits and how these can be managed.
Most local authorities already have some experience of renewable energy generation, usually through building mounted solar PV systems. The confidence that owning and operating these systems has brought is leading an increasing number of local authorities to consider owning larger renewable energy generating assets, either solar farms or wind turbines.
Several local authorities already own either large solar farms or a wind turbine, with many of these benefitting from financial support from previous subsidy regimes. A significant increase in renewable energy provision in the UK will be required if legally binding targets to be carbon neutral by 2050 are to be met. The Government’s British Energy Security Strategy (ESS), published in April 2022, sets out the ambition that by 2030, 95% of British electricity will be produced by low-carbon means, and by 2035 the Government aims to have a fully decarbonised electricity system. As part of the ESS, the Government has increased its ambition for offshore wind and solar and aims to improve the planning process for onshore wind.
Furthermore the Government’s own, MISSION ZERO – Independent Review of Net Zero (publishing.service.gov.uk) includes 129 recommendations aimed to help the UK secure net zero investments and meet its net zero target in an affordable manner. The review proposes that the Government should take forward ten priority missions, of which four relate to renewable energy generation and local authority deployment:
- Grid and infrastructure: a strategic framework and delivery plan for the critical networks of the future to turbocharge development.
- Solar: Full-scale deployment of solar including a rooftop revolution to harness one of the cheapest forms of energy, increase our energy independence and deliver up to 70GW of British solar generation by 2035.
- Onshore wind: Pave the way for onshore deployment, working closely with communities to deliver local benefits.
- Net Zero Local Big Bang: Unlocking the planning system and reforming the relationship between central and local government to give local authorities and communities the power they need to act on net zero.
The ESS deployment targets, coupled with the priority missions, provides opportunities for more local authorities to own renewable energy generating assets, to offset their own carbon emissions and provide stable energy pricing. This document focuses on wind turbines and utility scale solar PV farms.