Enabling Community Energy

Jim Shannon Excerpts

Thursday 1st July 2021 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in the debate, Sir David, as always. I congratulate the hon. Member for Bath (Wera Hobhouse) on setting the scene and giving us all the opportunity to participate in the debate, and thank her and the hon. Members for Ceredigion (Ben Lake) and for Waveney (Peter Aldous) for initiating it. In particular, I want to mention the hon. Member for Ceredigion, whose Adjournment debate had the best turn-out for such a debate that I can recall and saw consensus of support for what he was saying that night. It is good to have the chance to reiterate and underline those points in Westminster Hall today.

I am pleased to say that I added my support for the Local Electricity Bill. Although it does not specifically apply to electricity services in Northern Ireland, I am always interested to learn more on such issues—I believe we should do so—to analyse whether we can avail ourselves of similar strategies. That is what I wish to do in Northern Ireland. We have only two examples of such schemes in Northern Ireland; I wish we had more. There is a challenge for us to try to achieve that.

Community energy paves the way for wider decarbonisation goals and drastic improvements in localised renewable energy, making electricity services more sustainable in our communities. We should be trying to grasp the principle of what we are trying to achieve.

The pandemic had a significant impact on Government funding for community electricity programmes. The United Kingdom has witnessed the emergence of 424 community energy organisations, with England having 290, Scotland 72 and Wales 60, whereas in Northern Ireland we are in the very poor position of having only two. It is not that we do not want to, just that the opportunities have not been there.

The Local Electricity Bill seeks to change the Electricity Act 1989 in England, so that Ofgem is permitted to grant local electricity supply licences to local generators that are not designated in existing legislation. With five local energy hubs in England, it is clear that they are leading the pack, as they are in football. Reports show that as of 2020, community energy contributed 278 MW of renewable energy. If we take it to what we can do, there is hope that by 2030 2.2 million homes will save over 2 million tonnes of carbon emissions every year. The challenge is there. I believe that the Government are committed to that, and all the regions of the UK should try to their best to achieve it.

Let me make a quick comment about Northern Ireland. Communities across the United Kingdom are starting to recognise the increasing popularity of localised energy organisations, including in Northern Ireland, despite there only being two electricity corporations there, and in Strangford in particular. The first, Northern Ireland Community Energy, was the first solar community-owned energy co-operative in Northern Ireland. To finance its recent innovations, £150,000 was raised and this was the first time Northern Ireland was able to buy into a community energy benefit society. Its continuing aim is to increase awareness of community electrical shares in Northern Ireland. The second, Strangford Lough tidal turbine, is the world’s first commercial-scale tidal energy project. I am very pleased to say that it is in my home constituency. I have visited the site and seen what it can do, and the possibilities, and I am pleased to see that this wonderful landmark can be used to promote the use of sustainable energy.

I believe we have an opportunity, given that in 2020 358,000 people were engaged with energy and climate change. I would like to think these numbers will be on the increase. I welcome the content of the Local Electricity Bill, introduced by the hon. Member for Waveney. I hope that it progresses as it has real potential to succeed. It encourages energy organisations to engage with local authorities as opposed to largely populated and financed firms. The debate is about local communities, and I certainly encourage that.

We must ensure that the funding for these projects is allocated. I call on the Minister and all involved to engage with Members in the Chamber today, along with the members of the community energy organisations. We can do better, and I believe we must.

[Patrick Grady (Glasgow North) (SNP)]

It is always a pleasure, Sir David, to serve under your chairmanship. I congratulate the hon. Members for Bath (Wera Hobhouse), for Waveney (Peter Aldous) and for Ceredigion (Ben Lake) on not only their efforts to secure this debate but their ongoing championing of the issue of reforming the energy market to support community production and distribution. They have consistently demonstrated, and have done so again today, the wide cross-party and cross-country support—I think every nation of these islands has been represented in the debate today, and every party, more or less—

[Jim Shannon]

Better together.

[Patrick Grady]

Some might say that. My hon. Friend the Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) might have slightly different views. This is all about devolving and empowering local communities, so I suppose it depends on what level we want to devolve it down to—[Interruption.] My hon. Friend is very sorry that he cannot intervene, but we can see him on the screen.

One of my local communities, which I am sure would quite happily be an independent country if someone would let it, is in Partick, in the west end of Glasgow. It is very supportive of the idea of the community council there; it backed a related Bill in the last Session and wants to see it come back again. Indeed, the Scottish National party as a whole support that; our usual spokesperson on these matters, my hon. Friend the Member for Kilmarnock and Loudoun (Alan Brown), sends his apologies for not being here today, but we can all be assured of his ongoing support, too.

Very briefly, in order to leave time for the Minister to respond to the debate, I will look at the importance of the principle and the concept of community energy, and at some of the experience that we have heard in Scotland. I also have a few questions for the Minister.

One of the best descriptions of the concept of community energy that I have come across came from the Glasgow Community Energy co-operative. Its share offer successfully completed on 18 June; it had over 170 applications and raised £30,000 of financing, which is helping to put solar panels on the roofs of a number of schools in the city. It has said:

“For us ‘community energy’ has a double meaning. Glasgow Community Energy aims to connect and empower local people through community-ownership and democratic involvement in our renewable energy co-operative, as well as by inspiring and sustaining community activism through our Community Benefit Fund.”

So, for the Glasgow Community Energy co-operative, community energy is about not just providing energy for the community but harnessing the energy of the community as well—that galvanising effect, that psychological effect if you like, which the right hon. and learned Member for Kenilworth and Southam (Jeremy Wright) referred to.

Of course, behind that are the long-standing pressures for reform of the electricity market, or the electricity bureaucracy as my hon. Friend the Member for Na h-Eileanan an Iar said. There is a need for energy production and supply to be reformed, particularly in the face of rapid climate change. The need to get to net zero, as we heard right at the start of the debate from the hon. Member for Bath, requires low-carbon production and transmission. In the year of COP—the year when the UK is supposed to show global leadership—this is an incredibly important opportunity.

Community energy is also important for other reasons, including for energy security, so that we are not dependent on imported gas or electricity, or any other form of energy from overseas. Increased domestic energy production is safer and better for everyone. It is also important to tackle fuel poverty, which is a growing problem. Community energy also relates to the concept of localism, ownership and democratic control. We heard from a number of the Conservative Members that this process could be seen as part of what is supposed to be the Government’s levelling-up agenda—I think the hon. Member for Barrow and Furness (Simon Fell) said that, and he was quite right to do so. We also heard about international examples; Germany and Denmark were referred to by a number of Members, including the hon. Member for North East Fife (Wendy Chamberlain). All of that speaks to the economic benefit that can be gained by local energy production companies. Employment opportunities also come with community energy, in installation, management, maintenance and so on. It is a win-win situation.

The Scottish Government fully back and fully reflect all of those positions, particularly the importance of decarbonising the entire energy system. Their most recent local energy strategy was published in January 2021 and says that the Scottish Government

“recognises that local energy cannot be delivered in isolation. It is not a standalone policy, but one that integrates and aligns with other key policies, including energy efficiency, eradicating fuel poverty, heat decarbonisation, local heat and energy efficiency strategies, and consumer protection. It will develop alongside and within a vibrant national energy network.”

The Scottish Government had a target of 500 MW of community and locally owned energy by 2020; that amount has been exceeded, so now we intend to increase the target to 1 GW for 2020 and 2 GW for 2030. Progress towards these targets has been positive, but changes to some of the UK Government’s subsidies, not least the closure of the feed-in tariff scheme, has undermined that progress. However, we continue to encourage shared ownership models as a means of increasing community-led involvement in commercial projects.

My hon. Friend the Member for Na h-Eileanan an Iar will be very happy to hear—indeed, I am sure he already knows—that the Scottish Government are particularly committed to helping the communities on our islands to become carbon-neutral. Indeed, some of the pioneering work in this area has been done on the Isle of Gigha, with its early adoption of wind power. The SNP manifesto for the recent Scottish election said quite clearly:

“We support Carbon Neutral Islands which would be in the vanguard of reaching net zero emissions targets by 2045. This will include pilots for some islands to run on 100% renewable energy, to create circular economies tackling and processing waste, and exploring more sustainable transport options. We will work with at least 3 islands over this Parliament to enable them to become fully carbon neutral by 2040.”

My hon. Friend has the opportunity to lobby for many of the islands he represents in his archipelago to take part in that pilot.

That brings us to the Government. The short question coming from all hon. Members is, why not? What is the harm? I thought the Tory Government was supposed to believe in the free market, entrepreneurship and the flourishing of local enterprise, so why do they seem to be in hock to the big players? Why are they in hock to the traditional companies, who perhaps have the most to lose?

The simple ask coming from Members today is to let the Local Electricity Bill progress. It has wide cross-party support and a wide range of civil society support, from the Churches through to different manufacturers of the technology that would be used, and more. The Bill provides a very simple framework that would overcome existing barriers to entry into the market.

There are other things the Government could be doing as well. They could look at a replacement for the feed-in tariff that was so important in bringing so much renewable energy to the market in the first place. They could also help to stimulate demand for better local, greener energy by diverting funding away from damaging new nuclear technologies.

At the end of the day, much of this is about a vision—a vision for a fairer, cleaner, greener, locally led energy future. Unfortunately, that seems to be a vision that the UK Government are currently sorely lacking.