Powering up Britain

Christopher Hammond, UK100's chief executive looks at how local authorities can play a key role in cleaning up energy

A future of local clean energy leadership

As we enter 2025, Britain’s energy landscape stands at a crossroads. The government’s ambitious agenda to deliver growth, decarbonise the energy grid, and build 1.5 million new homes presents an unprecedented opportunity. 

The recent Autumn Budget, Devolution White Paper and Great British Energy plans mark welcome shifts in funding approaches, energy policy and recognising the importance of decentralising powers in Britain, particularly around ending the “begging bowl culture” of competitive funding. Yet while progress is being made on energy and devolution, these agendas must be better integrated to unlock their full potential.

The evidence for local leadership is compelling. Local leaders in Town and City halls across the country have influence over more than 80 per cent of the UK’s emissions. 

They are perfectly placed to bolster and leverage a net zero economy that grew by 9 per cent in 2023 and was worth £74 billion - against a backdrop of wider economic stagnation. For every £1 million in value added by net zero businesses, nearly £2 million more was generated through spillover effects. This opportunity is within reach for all regions – but only if we empower local leaders to seize it.

At UK100’s recent Local Leaders: Clean Energy Superpower Summit, which brought together over 100 local government, industry and policy leaders at London’s County Hall, we launched our member-led research report Local Net Zero 2.0 highlighting how local clean energy projects and locally-led approaches to net zero could save £140 billion compared to top-down national schemes.

The summit also showcased some of the pioneering authorities already at the forefront of the clean energy transition, delivering transformative change through innovative partnerships and place-based solutions. From pioneering heat networks in Southampton to community solar schemes in Oxford, local authorities are proving they can deliver clean energy solutions that work for their communities. 

The creation of Great British Energy, and its Local Power Plan, backed with a £8.3 billion investment provides unprecedented opportunities to scale up successful municipal and community energy projects nationally – with the government setting out a clear ambition that communities must feel the benefit of the energy transition.

Building for net zero

The challenge of decarbonising Britain’s buildings remains tough. The UK has some of the oldest and leakiest housing stock in Western Europe, with buildings accounting for around 17 per cent of emissions. But, as with all problems, the first step is usually to stop making the situation worse. The government’s commitment to build 1.5 million new homes presents both an opportunity and a risk - these homes must be built to zero carbon standards to avoid costly retrofitting later.

An ambitious Future Homes Standard has the potential to demonstrate significant progress, particularly if it mandates low-carbon heating, improves fabric efficiency and turns homes into energy producers and storers. Currently, the government is between two options, “option 1” which does all of the above, and “option 2”, which is limited to low carbon heating. The increased cost of the ambitious option is far outstripped by the energy savings homeowners will reap. These future-proof homes will also avoid a retrofit bill of ten of thousands pounds in ten years’ time.

If the government isn’t willing to go all the way, it should allow local authorities to set higher standards. Currently, local authorities that want to future-proof homes in their area still face challenges from restrictive national policy. The 2023 Written Ministerial Statement restricting councils from setting standards beyond building regulations exemplifies this tension between local ambition and national frameworks.

Yet innovative councils are finding ways forward. Bath and North East Somerset have adopted a local planning policy exceeding national standards to ensure new homes are built to net zero standards. Their policy includes ambitious energy consumption targets and requires on-site renewable development across all developments – residential and commercial alike.

Transforming existing stock

Retrofitting existing buildings presents an even greater challenge. By 2050, 29 million homes will need retrofitting, at a cost of up to £35,000 per property. The government’s £3.4 billion Warm Homes Plan shows welcome ambition, but the current process for supporting social housing decarbonisation through competitive funding rounds remains both inefficient and insufficient.

Greater Manchester shows what’s possible with proper planning and scale – they’re targeting 61,000 retrofits annually by 2030. Their comprehensive approach includes a retrofit skills hub, supply chain development, and innovative financing models. Meanwhile, Leeds’ Priority Neighbourhood programme demonstrates the wider benefits of retrofit, with internal temperatures rising from 12 to 18 degrees in treated homes.

The power of local area energy planning

Local Area Energy Plans (LAEPs) provide the foundation for coordinated action. These data-driven, evidence-based plans define optimal decarbonisation pathways for specific areas. These plans can be integrated into the investment activities and expansion undertaken by energy companies/Distribution Network Operators. Analysis shows they could reduce costs by over two-thirds while almost
doubling bill savings compared to national approaches.

From Greater Manchester to Glasgow, authorities are proving LAEPs’ value in optimising infrastructure investment and maximising community benefits. Cornwall’s innovative approach involves resident panels directly shaping their LAEP, ensuring community voices guide infrastructure decisions. The Welsh Government’s commitment to fund LAEPs for all regions provides a model for the rest of Britain. Yet currently, only one in six councils have developed LAEPs. Without a standardised framework and dedicated funding, we risk missing this transformative opportunity and a vital local foundation for GB Energy’s ambition.

The government’s commitment to regional devolution through the English Devolution Bill presents an opportunity to embed LAEPs in local decision-making. Combined with reforms to planning and the introduction of mandatory housing targets, we have a unique moment to align local energy planning with wider economic and social objectives. The experience of Wales shows how national frameworks can support local delivery while ensuring consistency and quality.

Effective partnerships

Success requires strong partnerships across the public sector. Our recently launched Influencing Strategy Toolkit provides practical guidance for local authorities to work effectively with stakeholders at all levels. The toolkit, developed through our Local Power in Action programme, and built on Calderdale’s award-winning success, helps authorities build the coalitions needed to overcome barriers and accelerate delivery. Public money alone won’t fund the Net Zero transition. It’s why we are working with energy companies like UKPN DSO, Thrive Renewables and Co2Sense to share knowledge and create opportunities for partnership and investment.

Bristol’s City Leap programme shows what’s possible, channelling £500 million of public-private investment into community-backed projects. Meanwhile, Barnsley’s community energy company is cutting bills by 30 per cent while supporting the area’s transition from its mining heritage. These successes demonstrate the power of combining public sector leadership with private investment and community ownership.

The path forward

Looking ahead to 2025, local public sector leaders should check their plans on three areas.

First, develop robust local energy plans that integrate with regional energy strategic plans, spatial planning and economic strategies. This means working closely with Distribution System Operators, who can provide crucial data and technical support, while ensuring plans align with wider public sector estate strategies.

Second, build effective partnerships across sectors. The most successful local energy initiatives combine public sector leadership with private sector investment and community ownership. Great British Energy’s Local Power Plan should provide a framework for this collaboration. But there are also tools like UK100’s Influencing Strategy Toolkit to build powerful coalitions for change. Success requires working effectively across local and national stakeholders, from community groups to government departments.

Finally, focus on skills and supply chain development. PWC estimates we’ll need up to 66,000 new skilled workers annually to deliver retrofit programmes alone. Public sector bodies must work together with education providers and industry to develop training programmes that create good green jobs, but Skills England and the Office for Clean Energy Jobs must work with local authorities to do this.

These priorities must be underpinned by genuine collaboration between local and national government. The trailblazer devolution deals with Greater Manchester and the West Midlands Combined Authorities show how enhanced local powers can accelerate clean energy deployment, but they must become the norm not the exception. Similar approaches could be rolled out across the country, with energy planning and delivery becoming a core component of future devolution agreements.

The future is local

With local government reform moving at pace, mandatory housing targets returning and ambitious clean energy goals set for 2030, the moment for integrated action has arrived. The creation of Great British Energy, planning reforms, and the Clean Energy Mission demonstrate the government’s commitment to transformation. But maximising the impact of these initiatives requires recognising that energy and devolution are two sides of the same coin.

The evidence from UK100’s Local Leaders Summit and our latest research is clear – empowering local leadership delivers better outcomes at lower cost. By bringing together the government’s devolution and clean energy agendas, we can create a more prosperous, sustainable Britain powered by local innovation and ambition – and clean energy!