More shared ownership in renewables on the horizon for rural communities with new energy plan
Critics of the mass rollout of energy developments often cite large profits going to private investors and multinational companies rather than local communities.
Scotland could see a rise in shared ownership of green energy projects between communities and developers thanks to the government’s new energy plan, community energy bosses have said.
Earlier this week, the UK energy secretary Ed Miliband pledged £1bn to help democratise the energy system, increase the wealth and financial independence of local communities, and potentially cut some local energy bills.
Clean energy campaigners, including Community Energy Scotland, said the plan’s commitments are significantly scaled back from the original commitments within Labour’s manifesto of a total of £1 billion per year of grants and loans. However, they said the commitment of the £1 billion sum over the course of the parliament instead for financial support, advice and expert help still represents “the largest ever public investment in community energy in the UK.”
The funding comes as the country continues to try and reach its targets to largely decarbonise its electricity sector by 2030, which will require a huge scale-up of renewable power, including wind and solar.
Mathew Clayton, chief executive of Thrive Renewables, a UK-based renewable energy investment company, welcomed the new Local Power Plan’s commitment to encourage more shared ownership of energy projects between communities and developers across the UK.
Shared ownership in renewable energy is a model in which local communities are given the chance to own a financial stake in a wind, solar or hydro project alongside a commercial developer, landowner or utility.
According to a recent report by Regen, an independent centre of energy expertise with a mission to accelerate the transition to a zero carbon energy system, shared ownership “should be recognised as a national priority”.
Examples of the model are rare in practice but are already emerging in Scotland, where some communities have taken stakes in projects or used renewable assets as a long-term source of income to fund local initiatives.
Thrive Renewables, which provided funding for Kilbirnie wind farm in North Ayrshire, Scotland’s first 100 per cent community-owned onshore wind turbine to operate commercially, runs multiple projects with shared ownership in the UK.
The company has recently committed to offering the model for Whitelaw Brae – a 57MW wind farm near Moffat - which is currently in construction.
Mr Clayton said as more shared ownership schemes come forward, more confidence will be built across the sector about the practical value of local involvement.
“We’re continuing to work with a number of projects in Scotland to encourage shared ownership,” he said.
“In terms of empowering communities to do something about climate change, you can pinch yourself a little bit that the Local Power Plan now exists and that it has been published.
“It’s hugely encouraging. We have less than 1,000 working days now to deliver the 2030 targets which are to double onshore wind, triple solar and quadruple offshore wind.
“We firmly view with the scale of change we have to deliver with speed.
“That can’t be done to people, people have to be involved in that. Where the Local Power Plan is coming from is the right place, to enable people to feel empowered, to be part of the energy transition rather than having it done to them. I am really encouraged by it.”
Mr Clayton said encouraging shared ownership would also speed up communities holding a stake in renewable energy developments.
Typically, the gestation period between the idea of building a renewable energy project, such as a wind farm, and having one built is five to ten years, industry bosses said.
Shared ownership, however, allows communities to “leap frog” a significant part of this period when invited into a shared ownership scheme with developers already in planning.
Mr Clayton said: “If I was being super optimistic, you could say there should be an element of mandating that projects should include community shared ownership.
“That’s not there in the Local Power Plan. It’s written as a call to action, which is a good start.”
In the plans, the Department for Energy Security and Net Zero (DENZ), said: “Shared ownership is already proving its power and illustrating these benefits.
“Government will develop detailed proposals on how a mandatory shared ownership offer could work and consult on it in 2026.
“We continue to encourage developers to offer shared ownership and community funds as best practice.”
Ministers and clean energy campaigners said they hope the funding will push back against a growing unease in rural areas about the surge in renewable energy developments, including the major upgrade of the UK’s grid infrastructure.
Multiple community council conventions have taken place across Scotland in the last year during which MSPs, residents and campaigners have come together to call on the UK and Scottish Governments to pause all major energy infrastructure applications until a “fairer” national energy strategy is established.
Leaders at the meetings, held in the Highlands, the north east and south Scotland, said they seek a comprehensive, nation-wide, and democratic review of the cumulative, industrial impact of these projects on rural landscapes, local economies, and communities.
Critics of the mass rollout of energy developments often cite industrialisation of the landscape and large profits going to private investors and multinational companies as main concerns.
Targets for new community-owned energy capacity across the UK have not yet been published, however, GB Energy said it planned to release a more detailed breakdown for the funding later this year.
Recent figures compiled by clean energy groups including Community Energy England, Community Energy Wales and Community Energy Scotland shows the community energy sector has grown consistently since 2017. The total installed capacity has grown by 81 per cent, with solar and hydro capacity more than doubling.
The number of people who are members of community energy companies has also almost tripled from 30,000 in 2017 to nearly 85,000 in 2024.
Community Energy Scotland welcomed the Local Power Plan.
The organisation’s chief executive Zoë Holliday said: “For too long, profits of clean energy have flown straight out of communities, while many of the communities in the shadow of the largest renewables projects face the highest energy bills and the highest levels of fuel poverty in the country. Community ownership of energy can reverse this trend and create jobs, community wealth and cohesion.
“Support for community energy is support for sustainable and resilient communities, now and in the future. We look forward to working with Great British Energy, the UK Government and Scottish Government to support the Local Power Plan’s vision for every community to have the opportunity to take forward a local energy project.”
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