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Ahead of the 2024 General Election, Labour published a policy paper outlining promises to “make Britain a clean energy superpower” by 2030, backed by £1 billion of annual funding for tens of thousands of local and community energy projects across the UK.
It pledged: “GB Energy will make available up to £600 million in funding for local authorities and up to £400m low-interest loans each year for communities.”
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Further, under the heading “local power plan”, the document promised funding for “more than 1000 local power projects” in Scotland, Wales, and eight out of nine English regions. Northern Ireland and the ninth English region were both promised “hundreds of local power projects”.
A conservative estimate, then, was that Labour would fund some 10,000 projects across the UK. Elsewhere, the white paper went further, saying a Labour government would fund “up to 20,000 [local] renewable power projects” which would be “essential for delivering cheaper, cleaner power by 2030”.
However, in the UK Government’s finalised Local Power Plan, this has been cut back by around 95%.
GB Energy chief executive Dan McGrail wrote: “Our ambition must reach every part of the UK. That is why we have set the bold target of supporting more than 1000 local and community projects in the first phase of our strategic plan to 2030.”
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The funding had also been cut back from the pledged £1bn per year to “up to £1bn throughout the rest of the Spending Review period” – which is until 2030 for capital investment.
Another cut has been the volume of energy pledged. In the post-election GB Energy founding statement, Energy Secretary Ed Miliband said the Labour Government would “develop up to 8GW [gigawatts] of cheaper, cleaner power” through backing local renewable projects.
The 8GW figure – which the Energy Saving Trust has estimated would be enough to supply more than four million homes – also appeared in the pre-election white paper.
However, the figure has been quietly dropped, and there is no mention of a new target for GW capacity in the finalised Local Power Plan at all.
Aberdeen Central MSP Kevin Stewart, in whose constituency GB Energy is headquartered, called the climbdown “yet another broken promise from Labour”.
“Whether it’s GB Energy, Grangemouth, Mossmorran or the disastrous Energy Profits Levy, Labour are not delivering on their pledges and decimating Scotland’s energy sector on the way,” he said. “It’s only with the full powers of independence that we can create an energy policy that suits Scotland’s needs.”
Patrick Harvie, the Scottish Green MSP and net zero spokesperson, said the promise of £1bn per year now appeared to be “just a cynical attempt to mislead voters” ahead of the General Election.
“For years in opposition, the Labour Party criticised Tory governments for the damage caused by austerity and cuts. Yet Labour in power put a higher priority on supporting the private sector to build new nuclear than on supporting community-owned energy,” he went on.
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“We know that community energy projects will lower household energy bills and create local green jobs, providing a clear path away from fossil fuels and on to renewables. But they need serious, reliable investment, not watered-down pledges.
“Both governments should be doing far more to support community and public ownership of energy.
“The UK Labour Government must honour the promise it made to voters and provide the scale of funding that was originally promised. The Scottish Government also has power at its disposal to support community ownership, and all parties should make bold commitments in the election this May.”
A Department for Energy Security and Net Zero spokesperson said: “The Local Power Plan is the biggest public investment in community energy in British history.
“By giving people the chance to take control of their energy, this government is making a fundamental choice to transfer wealth and power back to our communities.”