Miliband Announces Historic £1bn Investment in Community Green Energy
Energy Secretary Ed Miliband has pledged up to £1 billion for community-owned renewable energy projects across the United Kingdom, marking what the government describes as the largest ever investment in local green energy initiatives. The funding aims to transform how communities engage with and benefit from clean power generation, potentially increasing local wealth and reducing energy bills for residents.
Democratising Energy and Boosting Local Economies
Miliband emphasised that this substantial investment represents a fundamental shift toward democratising the energy system. "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 in our society," he stated. "Local and community energy is at the heart of our government's vision."
The funding will support community-owned solar, wind, hydro, and biomass projects, allowing local areas to control and profit from renewable power generation rather than seeing profits flow exclusively to large energy corporations. "With the biggest-ever investment in community energy in Britain's history, this government is saying to every local community: we want you to be able to own and control clean energy so the profits flow into your community," Miliband added.
Implementation Through GB Energy
The initiative will be overseen by GB Energy, the state-owned company established by Labour to deliver cheaper electricity bills and enhance national energy security. The government claims up to £1 billion will be available before the next election, with funding shared among the Welsh, Scottish, and Northern Irish governments.
GB Energy initially aims to support approximately 1,000 clean energy projects through grants or loans. The funding could also enable communities and local councils to purchase shares in larger privately owned schemes. Ministers anticipate the money will finance solar panels on public buildings, churches, and schools—potentially generating significantly cheaper off-grid power—or fund small new wind farms where profits are reinvested in community priorities like social housing, subsidised transport, or village halls.
Addressing Grid Challenges and Political Opposition
Government officials and supporters hope this investment will help counter growing scepticism and resistance to renewable energy projects and grid upgrades. Critics have voiced concerns about industrialising landscapes, with profits from large-scale schemes flowing to private investors and multinational companies. Some local campaigns against these projects have been embraced by Conservative and Reform UK politicians, and even weaponised by US President Donald Trump in challenges to Labour's broader net zero agenda.
Zoe Holliday, Chief Executive of Community Energy Scotland, welcomed the funding but highlighted infrastructure challenges. "The UK government has to ensure that the electricity grid was capable of carrying all this new power; the current system was too patchy, leaving some community projects unable to proceed," she noted. Nonetheless, she described the investment as potentially "truly transformative" for local communities, particularly in rural areas where large turbines often provide no direct benefits to residents.
Sector Growth and Future Prospects
Recent data from Community Energy England, Community Energy Wales, and Community Energy Scotland shows consistent sector growth since 2017, with total installed capacity increasing by 81% and solar and hydro capacity more than doubling. Membership in community energy companies has surged from 30,000 in 2017 to nearly 85,000 in 2024.
Local councils have already begun investing in publicly owned energy schemes. For instance, Edinburgh City Council helped establish a solar cooperative installing crowd-funded solar panels on public buildings, while Orkney Islands Council secured £62 million from the UK government to install six turbines near Kirkwall.
While neither the UK government nor GB Energy has published specific targets for new community-owned energy capacity, GB Energy plans to release a detailed funding prospectus later this year. This initiative forms part of a broader multibillion-pound green energy strategy, with new solar and onshore wind projects expected to be announced imminently.
