Energy Saving Trust Presses UK Government to Back £3.3 Billion Local Power Plan Investment

The London-based Energy Saving Trust, an organisation dedicated to promoting energy efficiency, conservation, and sustainable energy use, is urging the UK government to channel the £3.3 billion, or approximately $ 4.4 billion, pledged for the Local Power Plan into scaling up community energy.

In a new paper titled "Scaling up community power: Maximising the impact of the Local Power Plan," the trust outlines six key outcomes that it says are essential for meeting the government’s ambitious goal of achieving 8 gigawatts of local and community-owned energy capacity.

Drawing on its own programme experience and insights from the Centre for Sustainable Energy, Regen, and Community Energy Pathways, the trust sets out how to ensure community energy delivers maximum social, environmental, and economic benefits nationwide.

Its first recommendation is to establish a dedicated community energy support service for every community in England. This service would provide practical guidance to simplify project development, drawing on lessons from Scotland and Wales, where similar approaches have proven effective. It would also focus on building capacity and helping new community energy groups become more professional in their operations.

A second priority is strong financial backing. The trust calls for the full £3.3 billion of Local Power Plan funding to be retained as set out in the Green Prosperity Plan. Grants, low-interest loans, and expert advice, it says, would help communities become investment-ready and deliver successful projects.

Another important element is awareness. Research shows that only 26 per cent of adults in Great Britain are familiar with community energy. The trust recommends launching a nationwide campaign to promote its benefits, such as shared ownership models that allow people to take an active role in the energy transition.

The paper also calls on the government to weave community energy into its broader climate strategy, ensuring that initiatives like the Warm Homes Plan recognise its value. This includes supporting home retrofits and other local improvements.

Ultimately, the trust seeks a policy environment that fosters an enabling environment, removing existing regulatory barriers. It suggests introducing a targeted revenue certainty mechanism to support viable business models and prioritising community energy projects in the grid connection queue.

Stew Horne, the trust’s group head of sector intelligence and external affairs, welcomed the government’s acknowledgement of community energy within its Clean Power target. He said confirming the £3.3 billion investment should be the first step in making the plan a reality. According to Horne, it is a rare opportunity for communities to directly benefit from the shift to net zero while strengthening the UK’s energy resilience.