A ban on councils across Britain selling renewable electricity to the grid is to end, it has been announced.
Only 0.01 per cent of electricity in England is currently generated by local authority-owned renewables, despite the scope that exists to install projects on their land and buildings.
The ban on local authorities selling renewable electricity will end in August, thus opening new sources of income including the full benefit of the feed in tariff which incentivises renewable electricity.
At present local authorities are able to put any renewable electricity they generate to local use, and to benefit from the associated feed in tariff for projects smaller than 5MW.
However, they are restricted from selling any excess renewable electricity into the grid other than that generated from combined heat and power, and also from benefitting from the additional export component of the feed in tariff.
Up to £100 million a year in income could be made for local authorities across England and Wales.
Energy and Climate Change Secretary said: "I’ve written to all councils urging them to take advantage and lead a local energy revolution."
"This is a vital step to making community renewable projects commercially viable, to bring in long-term income to benefit local areas, and to secure local acceptance for low carbon energy projects."
Further information:
Department of Energy and Climate Change
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