Renewable Energy: Private Sector Investment

Since the election last year, we have secured over £50 billion of investment into the UK’s clean energy industries. Last year’s renewables auction for allocation round 6 was the most successful in our history, and we will shortly open the AR7 auction. This is the way to deliver energy security, lower bills and good jobs for our communities.

Private sector investment via community energy schemes is a popular way of engaging people to get behind renewable energy projects in their area. A great example is Meadow Blue Community Energy in my constituency of Chichester, which puts money back into the community with a grant scheme and is now funding solar panels on local school roofs. Does the Secretary of State agree that community energy projects would attract more private sector investment if grid access costs were reduced and the delivery of local supply was made easier?

The hon. Lady raises an important issue, which was also raised by the right hon. and learned Member for Kenilworth and Southam (Sir Jeremy Wright). She is right about the virtues of community energy. Great British Energy is going to partner with local communities to deliver community energy up and down the country, because sometimes public capital—it could be loans, it could be grants—can help lever in the private capital that we need. She is also right about some of the barriers, as the Energy Minister mentioned. I want to assure her that we are going through the different barriers in granular, nerdy detail to see how we can break them down.

I must declare an interest as a crofting tenant of Knock and Swordale common grazing, as good a definition of a community as you can ever get, but Knock and Swordale, along with several other community power schemes in my constituency, cannot get grid connections except through active network management connections, which basically means that the communities can supply power to the grid only when the big boys—the commercial companies—are not doing so. These connection offers are next to useless, and the National Energy System Operator, Ofgem and the transmission companies have to be told from this Dispatch Box that they cannot be agnostic about what kind of grid connection they offer and to whom. They must put communities first if communities are going to support this transition.

My hon. Friend, who I have talked to on a number of occasions about these wider issues, raises a really important point. I was just talking to the Energy Minister about it. Let me take away my hon. Friend’s point about access. We are committed to driving forward community energy, and we will talk to NESO and Ofgem to get it right and make sure it happens.