Councils to sell renewable energy direct to national grid

Councils will be able to sell renewable energy directly to the national grid under government reforms announced today.

Local authorities are being encouraged to use their land and buildings to host projects that generate clean wind, solar and water power.

Energy Secretary Chris Huhne said lifting a ban on councils in England and Wales selling to the grid from next week would allow them to raise up to £100 million a year in income.

At present only 0.01% of electricity in England is generated by local authority-owned renewables, compared to around 1% in Germany.

Mr Huhne, who will visit clean energy projects run by Woking Council today, said: "For too long, Whitehall's dogmatic reliance on 'big' energy has stood in the way of the vast potential role of local authorities in the UK's green energy revolution.

"Forward thinking local authorities such as Woking in Surrey have been quietly getting on with it, but against the odds, their efforts frustrated by the law.

"I've taken the early step of overturning the ban on local authorities selling renewable electricity to the grid.

"I've today 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."

The Institution of Civil Engineers welcomed the move.

Director-general Tom Foulkes said: "Lifting this ban will help drive forward essential renewable energy projects in the UK, giving local authorities an incentive to invest in local projects.

"While a focus on large-scale energy projects is essential, smaller community projects also have an important role to play in the UK's future energy mix."