Councils will be able to sell green power to National Grid

8 Jul 10
Councils that generate their own electricity from green sources will be allowed to profit from any surplus they contribute to the National Grid, the government has announced
By David Williams

8 July 2010

Councils that generate their own electricity from green sources will be allowed to profit from any surplus they contribute to the National Grid, the government has announced.

Energy and Climate Change Secretary Chris Huhne told the Local Government Association conference in Bournemouth yesterday that he would scrap a law prohibiting councils from benefitting financially from any extra power they generate.

This provision in the 1976 Local Government Act effectively discourages councils from investing in renewable technology, such as installing solar panels on social housing units.

‘I want to see this repealed and by the end of the year I hope local authorities will be able to sell electricity from renewables, generating revenue to help local services and keep council tax down,’ said Huhne.

Figures published today by the Department for Energy and Climate Change show that in 2008/09, local authorities in England produced more than 600,000 kilowatt-hours of electricity through solar and wind power, and over 33 million kw-h from wood-burning biomass generators.

The LGA welcomed Huhne’s announcement. Gary Porter, chair of the body’s environment board, said the move would transform the way councils provide green power for millions of people.

‘Town halls across the country are desperate to install solar panels and other renewable energy measures on millions of homes, offices, leisure centres and other council buildings,’ he said. ‘This has the potential to revolutionise the way we produce electricity by turning town halls into green power stations.’

But Thameswey Energy, the body set up by Woking Borough Council to generate more sustainable energy for the authority, suggested that creating a surplus was not high on its agenda.

Managing director John Thorp said the focus will still be to ‘maximise the amount of self-generated electricity used while minimising the amount exported to the National Grid.’

Andy Johnston, head of local sustainability at the Local Government Information Unit, was more upbeat, saying councils should definitely be interested in generating more of their own power, as it offered a new way of making money.

‘It depends on the council, but if they have a lot of land in a windy area, they’re made,’ he said. The new incentives could also enable some councils to become carbon-neutral, Johnston observed.

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