10 Aug 2010 12:08:43
Local authorities able to sell renewable power to grid
Local authorities will soon be able to sell any power they generate from renewable sources to the national grid.
Energy and climate change secretary Chris Huhne announced that he has overturned a law which prevented local councils from selling any energy they produce.
The move is intended to increase the number of authorities that choose to generate their own power from renewables, which currently only represents 0.01 percent of the electricity produced in the UK.
From August 18th, local authorities will be able to take advantage of government incentives for microgeneration and green energy production, potentially opening up £100 million of income a year. Currently councils are only able to put any power they generate to local use.
Mr Huhne said: "For too long, Whitehall's dogmatic reliance on 'big' energy has stood in the way of the vast potential role of local authorities in the UK's green energy revolution."
He added that, in addition to proving the commercial viability of such projects and providing income, the move will "secure local acceptance for low carbon energy projects".
The Confederation of British Industry claimed recently that the government must reform and clarify energy and planning policy in the next six months or risk losing out on private investment in the energy infrastructure.