The Local Power Plan

Robbie McKinnon, Decarbonisation Manager, Axis CLC, March 2026

The Local Power Plan (LPP) is a UK Government initiative designed to expand community-owned and locally led renewable energy projects.

The programme aims to give communities greater influence over how energy is generated, owned, and used locally, while supporting the UK’s transition to a low-carbon energy system. Delivery will be coordinated through Great British Energy Local, which will provide funding, technical support, and investment structures to accelerate local energy projects.
Strategic Objectives

Strategic Objectives

The Local Power Plan is intended to deliver four core outcomes.

• Community Empowerment
  Giving residents and organisations the opportunity to participate in ownership and decision-making for energy infrastructure.
• Economic Resilience
  Ensuring that profits from local renewable generation remain within communities and can be reinvested in local priorities such as public services, green spaces, or fuel poverty programmes.
• Job Creation
  Supporting employment opportunities in project development, installation, and maintenance of renewable energy systems.
• Energy Security
  Reducing reliance on imported fossil fuels and exposure to global energy price volatility by increasing local generation and storage capacity.

Scale of the Programme

Between 2026 and 2030, the UK Government aims to:

• Support over 1,000 community and local energy projects
• Provide up to £1 billion in public funding
• Ensure all UK communities have access to a pathway to local energy ownership

How the Programme Will Work

The Local Power Plan will support projects through four main mechanisms.

1. Capital Funding
   Grants and loans will be available for project development, construction, and shared ownership of renewable assets through the GBE Capital Toolkit.
2. Technical Support
   Communities will receive guidance through a standardised toolkit (“Community Energy in a Box”) alongside specialist advisory services.
3. Investment Mobilisation
   The programme will help attract private investment by developing commercially viable models such as Smart Local Energy Systems, local flexibility markets, and virtual power purchase agreements.
4. Regulatory Reform
   The Department for Energy Security and Net Zero will work with Ofgem and network operators to simplify grid connections and enable local energy sharing.

What Counts as "Community Energy"?

In UK policy, community energy is defined primarily by ownership and governance, rather than simply geography.

Projects typically involve:
Local participation in decision-making
• Community ownership or equity stakes in energy assets
• Profits or savings reinvested locally
• Democratic governance structures

Community organisations may take forms such as:
Community Benefit Societies
• Co-operative societies
• Community Interest Companies
• Partnerships with local authorities or housing associations

Why the Plan Matters

The Local Power Plan seeks to scale community energy from niche projects to a mainstream component of the UK energy system.

By combining public funding, private investment, and regulatory reform, the government aims to enable thousands of locally led renewable projects that strengthen energy security, support local economies, and accelerate progress toward net zero.