Local energy plans must be funded to ensure a just transition

The energy transition risks becoming a postcode lottery unless all councils are supported to deliver a local area energy plan (LAEP).

These blueprints for net zero at a grassroot level are critical to ensuring the right pathway is identified for each area. While 114 local authorities have either completed or are working towards their plan, two thirds have yet to have their say. Many told Utility Week they do not have the resources or access to funding to embark on a LAEP.

The view of Utility Week is that a just transition depends on every area of the country having their say on net zero.

That is why we are launching a campaign calling for government to mandate and fund LAEPs across the country.

According to the Energy Systems Catapult, which was instrumental in developing the LAEP model, the upfront cost of this would be £40 million. Our ‘Make it a LAEP Year’ campaign identifies the clear return on this investment for the taxpayer, from tackling fuel poverty, to creating green jobs and ensuring a smooth rollout of low-carbon technologies.

Over the next few months, we will explore these benefits, gauge the real-world impacts of LAEPs on local authorities’ net zero plans and how utilities can support these ambitions.

We will be asking all the UK’s major utilities to show their support by publicly backing this campaign. We will then be asking each of the major political parties to listen to the evidence put forward and the strength of the backing as we head into the general election.

This campaign builds on work carried out by Utility Week with SSEN and SGN, gauging the net zero blockers at a local level. Our findings can be explored here.

Signing up as one of the first signatories to the campaign, SSEN Distribution managing director Chris Burchell  said: “It’s vital the net zero transition benefits everyone. It needs to be locally-led, with a democratic mandate from communities for what will represent a transformation in the way we use energy and plan infrastructure locally.

“Local Area Energy Plans represent an agreed pathway for local authorities, energy networks and other actors to co-design and co-develop their energy needs across vectors, aligned to a just transition. At SSEN, we’ve been playing our part, enabling our Local Authorities’ efforts through our innovative LENZA tool to link network data with spatial and socio-economic factors. This is helping, for instance, to decide the most efficient siting of local transport hubs and heat zones.

“Progress is being made but the biggest opportunity is to ensure that the local energy transition is planned and delivered in a consistent way.  We believe LAEPs are the foundation on which wider economic and spatial benefits can be secured and deploying a coordinated funding model is essential to this aim.”

Throughout the campaign, Utility Week will work closely with the Energy Systems Catapult to present the case for LAEPs to government.

As well as helping to develop the LAEP model, the Catapult has been working with the Welsh government as an advisor on a project that uses LAEPs across the country as a basis for a National Energy Plan. As part of this, the Welsh government is resourcing the LAEPs.

Energy Systems Catapult’s chief executive Guy Newey said: “The next phase of decarbonisation needs the rapid roll-out of clean energy infrastructure across the country; new heat networks, new network upgrades and new retrofit measures. This will not happen at the pace and scale required without clearly identifying the priorities for different areas and winning the support of local people for new clean energy infrastructure. That is why Local Area Energy Planning is such a crucial building block in getting that infrastructure delivered.

“Over the past few years, Energy Systems Catapult and others have pioneered this approach. We now have more than 100 local authorities with a robust plan – or working towards a plan – identifying priority infrastructure needs and unlocking local investment. We need every community to benefit from the transition, which is why we support Utility Week’s call for the government to endorse energy planning for every area and provide the funding to deliver it.”

UK100, the cross-party network of local leaders committed to ambitious climate action, is another important partner on this campaign.

Its chief executive Christopher Hammond said: “Local Area Energy Plans are one of the key missing pieces of the puzzle when it comes to councils tackling climate change. They provide the blueprint for local leaders to transform their towns and cities in a way that works for their communities, from boosting renewables to future-proofing homes. But right now, while Wales and Scotland race ahead, too many councils in England are left on the starting blocks without the tools or resources to get these vital plans drawn up.

“UK100 wholeheartedly backs Utility Week’s campaign to kickstart the race for every area to develop a Local Area Energy Plan. By supporting councils to create a locally-led, nationally coherent pathway to cheaper, more reliable, home-grown energy, we can accelerate the UK’s journey to net zero while ensuring every community sees the benefits of warmer homes, cheaper energy and thriving local green industries.”

To show your support for the campaign, please email James Wallin.