Enabling Community Energy

Jeremy Wright Excerpts

Thursday 1st July 2021 Westminster Hall

[Jeremy Wright (Kenilworth and Southam) (Con)]

It is a great pleasure to serve under your chairmanship, Sir David. I congratulate the hon. Member for Bath (Wera Hobhouse) on securing the debate, and all those who have spoken on this subject not just this afternoon, but on other occasions.

I join the consensus that locally generated energy has huge, partly technical, advantages. We can, if we make use of this method, increase the volume of energy generated and, more importantly, the volume of sustainable and renewable energy generated. If energy has to travel less far from where it is generated to where it is consumed, we lose less in transit, and of course, we know from the examples of community energy that we can already see, that it brings huge broader decarbonisation benefits and educational advantages, too, so there is technically very much to commend it. There are also psychological advantages. As others have said, if we enhance our capacity to generate energy locally, we help people to participate in the combating of climate change, and we make that effort local, rather than distant from them.

Of course, as has already been observed, we have had the right to local energy suppliers for about 20 years, but that is a distinctly theoretical right at the moment. The broader issue that we face is how we go about realising the current unrealised potential of locally generated energy. To do that, we have to address the obstacles. As others have already observed, the entry costs for local energy enterprises are far too high, and their inability to sell directly to local customers is the fundamental problem, which was addressed by the Local Electricity Bill that my hon. Friend the Member for Waveney (Peter Aldous) so ably introduced in the previous session. I would not claim—nor, I suspect, would he—that the Bill was perfect, but its fundamental purposes and objects are worth pursuing. I hope that this afternoon, the Government will accept that they will do exactly that.

There is so much growing local enthusiasm to assist the Government in delivering their climate goals. Everybody wants to help, and this is a practical way of doing so. I can think of examples in my constituency, such as the Napton Environmental Action Team, or the Harbury Energy Initiative, which has been in receipt of Government financial assistance in environmental pursuits and is keen to do more. The Government need to help them to help the Government deliver our collective climate goals. The Government can look at tax incentives and at the role of local authorities, and they should look at ways of ensuring access to the cable network at a fair price, but if we cannot ensure that local enterprises producing locally generated energy can sell their product locally, we will still have a fundamental object to the way that we want to deliver locally generated energy.

As I understand it, the Government will produce their net zero strategy refresh this year. I hope that my hon. Friend the Minister will say that as part of that exercise, the Government will look carefully at how they can deliver the fundamental objects of the Bill introduced by my hon. Friend for Waveney, and make sure that we can assist others to assist us in delivering those climate objectives on time.