Decentralised generation could rival big six, says think tank

Cities and local authorities could become rivals to the big six energy companies through decentralised generation, according to the Institute for Public Policy Research (IPPR).

In a report, the think-tank urged city and local authorities to do more in terms of supporting and investing in local generation schemes.

IPPR stated that smaller scale electricity generation is increasingly cost efficient, whilst also creating jobs and boosting the local economy.

The study also stated that cities that push ahead with decentralised generation schemes would “help to ensure that subsidies for low carbon power benefit their communities rather than multi-national companies”.

IPPR also called for cities to work with the Green Investment Bank on “discrete” low carbon infrastructure projects where there is a clear rate of return; and for local authority pension funds to “proactively seek” low carbon investments.

Nick Pearce, IPPR director, said: “Local generation technologies like solar and medium-scale wind are radically transforming how energy systems operate, bringing to an end the dominance of centralised generation and distribution.

“This will create a system which is much more diverse and competitive. Cities should grasp the opportunity this presents to support local job creation and growth and enhance the resilience of local electricity supply.

“This will ensure that more low carbon subsidies directly benefit British communities.”