Energy secretary Ed Miliband has announced up to £1bn in funding for community-owned green energy projects, aiming to address growing opposition to renewables and grid upgrades. The money, to be spent before the next election, will support local solar, wind, hydro and biomass schemes, with the goal of democratising the energy system and reducing bills.
The funding will be administered by GB Energy, the state-owned company central to Labour’s clean energy strategy. It is expected to back 1,000 projects through grants or loans, and may allow communities to buy shares in larger private schemes. Ministers hope the investment will help counter criticism of new pylons, wind farms and solar arrays, which opponents say industrialise the landscape.
Miliband said: “Britain’s drive for clean energy is about answering the call for a different kind of economy that works for the many, not just the wealthy and powerful.” He added that the government wants communities to own and control clean energy so profits stay local rather than flowing to big energy companies.
Community energy groups welcomed the announcement but noted it falls short of the £1bn per year promised in Labour’s 2024 manifesto. GB Energy said the funding is part of a broader multibillion-pound strategy, with new solar and onshore wind projects due this week. The sector has grown significantly, with installed capacity up 81% since 2017 and membership rising from 30,000 to nearly 85,000.
Zoe Holliday of Community Energy Scotland called the funding “truly transformative” but stressed the need for grid upgrades to handle new capacity. She noted that many rural communities see turbines on the horizon without benefiting, and this scheme could change that.
