Communities hosting wind farms, solar developments and electricity infrastructure must receive a meaningful share of the financial benefits or risk turning against the UK's clean energy transition, MPs have warned.
A new report from Westminster's Energy Security and Net Zero Committee says local ownership of renewable energy projects is being left behind despite the Government's ambition to rapidly expand clean power generation.
The cross-party committee warns that communities across the UK are being asked to accommodate large-scale renewable developments while seeing little direct economic benefit in return.
It says this threatens public support for the Government's Clean Power 2030 mission and could undermine efforts to accelerate the rollout of renewable energy infrastructure.
The report concludes that ministers are unlikely to meet their target of increasing community and local energy generation from 411MW today to 8GW by 2030 unless significant reforms are introduced.
Among its recommendations, the committee is calling for communities to be guaranteed the opportunity to acquire at least a 20% stake in renewable energy projects in their area. It also wants planning rules changed so community ownership and enhanced local benefits become material considerations when renewable developments are assessed.
MPs further recommend prioritising community-owned schemes for grid connections and introducing a new framework that would allow local generators to sell electricity directly to local consumers.
The committee argues that current rules disproportionately disadvantage community energy projects compared with commercial developers, despite the role they could play in boosting public acceptance of the wider energy transition.
Bill Esterson MP, Chair of the Committee, said: “Communities are an important part of the energy transition if the government is going to hit its targets. Across the UK, communities are putting in huge effort and resources to host large-scale renewable projects. But they face a system stacked against them, and too often they don't share the benefits.
“This has real consequences for the UK's clean energy targets and for our economy. Public support for the energy transition and local investment opportunities could be undermined, with the risk of energy bills staying higher than they need to for longer.
“Our report is calling for urgent action through the new Energy Independence Bill. We're asking the government to prioritise community energy projects for grid access, guarantee communities are offered the opportunity of a minimum 20% stake in local renewable energy development and make it easier for community generators to sell their energy locally.”
The report warns that community ownership of energy resources is in danger of being left behind during the transition to net zero and says areas hosting renewable infrastructure should "see profits as well as pylons".