Community Energy: Small Businesses

(asked on 20th February 2026) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether he plans to bring forward reforms enabling local energy communities to sell clean power directly to nearby small businesses through local power purchase agreements.


Answered by
Michael Shanks Portrait
Michael Shanks
Minister of State (Department for Energy Security and Net Zero)
This question was answered on 2nd March 2026

The Local Power Plan is a joint DESNZ‑GBE publication setting out the UK’s largest ever public investment in community energy.

The Department will deliver the policy and regulatory change working with Ofgem, NESO and others as appropriate. Great British Energy (GBE) will act as the principal delivery body for the Local Power Plan, providing funding and advisory support to eligible projects

DESNZ will continue to work across government and with the Community and Local Energy sector to demonstrate the value Power Purchase Agreements offer and develop models in line with accounting standards.

GBE’s capability and capacity support will create a knowledge hub with standardised templates for contracts, including PPAs.

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