What the Local Power Plan means for community energy

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13 Feb 2026

More than wires and turbines – what the Local Power Plan means for community energy

The spotlight’s on community energy. Now is the time to build on this momentum.

Article written by anna.cooper

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Last week the government published its much-anticipated Local Power Plan, committing £1 billion of investment into local and community energy – the biggest public investment in the sector in UK history. Having championed locally owned energy projects since the late 90s, we’re really encouraged to see this huge opportunity for community energy to power up at scale.

Here are some of the commitments we’re most pleased to see:

“Bottom-up” approach to the energy transition

Thrive was established 30 years ago to nurture and develop a bottom-up, peopled-powered approach to the energy transition, bringing together individuals, organisations and communities to get new clean energy projects built. So needless to say, we’re really pleased to see the vision of a people-powered energy system outlined in the Local Power Plan. More than just wires and turbines, community energy is power that is owned and controlled by communities themselves, where the benefits stay local. It’s energy by the people, for the people. We know this approach works – projects like the Ambition Community Energy (ACE) wind turbine, which is name-checked in the plan, are evidence of that. The ACE turbine in Bristol which Thrive helped fund is doing more than just deliver megawatts – as proud owners of England’s largest onshore wind turbine, it’s giving local residents in Lawrence Weston an active role in transforming the UK’s energy system, whilst providing a new local revenue stream.

“Now many more communities can benefit just like we have, by owning our own energy producing asset. But this is more than just providing us with our own sustainable income, it also gives us a stake in the energy marking instead of being passive consumers. It gives us pride of our place and helps us to do our bit to improve the climate. It’s a win, win, win. If we can do it, so can other communities.”

Mark Pepper, Development Manager, Ambition Lawrence Weston

Imagine what the impact could be if we could have the equivalent of an ACE turbine in every neighbourhood across the UK? That‘s the government’s ambition by 2030 – let’s hope it delivers.

Support for shared ownership

It’s encouraging to see a commitment to boosting shared ownership – enabling communities to take a stake in clean energy projects in their area. Shared ownership gives communities access to projects that are expertly developed and ready to go, including larger projects with more secure revenue streams. Depending on the size of their stake, communities may have the opportunity to influence how a project operates. Since offering shared ownership in our first ever wind farm in the 90s, we’ve been committed to helping communities take ownership of energy on their doorstep. Now we’ve offering the community a share of every new project we acquire – currently exploring shared ownership opportunities at Dunmow solar farm in Essex which became operational last year and Abergorki wind farm which is being developed in South Wales.

Unlocking funding and capacity through collaboration

Community energy schemes generate 12 times the local economic value of commercial projects, yet currently generate only 0.5% the UK’s electricity. The sector is grappling with a lack of access to flexible funding, and a capacity and skills gap. The Local Power Plan promises to address the capacity gap, through developing new service models with tools and advice for communities to access, plus creating a strong partnership network across local, national and commercial bodies. It also intends to “crowd in” private investment. How this will be achieved is still not fully clear, but it is positive to see the government recognise the importance of a collaborative approach to rolling out community energy projects.

Our joint venture with Better Society Capital, Community Energy Catalyst (CEC), provides a working model of how collaborative finance can help more communities own projects in their area. The initiative provides flexible funding to complement government grants and other sources of finance, plus industry specific skills and expertise. CEC will help support the ambitions of the Local Power Plan by providing the flexible funding community energy groups need to bring projects to fruition.

Now is the time to Up the Energy

The commitments made in the Local Power Plan have the potential to transform the community energy sector. But at the moment, they are still just commitments. What we need to see now is regulatory changes in practice to remove the barriers that are preventing the sector from accelerating at pace. We’re particularly concerned to see more detail on how government intends to support communities in establishing clearer routes to sell locally generated power – as this is crucial for attracting investment from the private sector and ensuring the benefits of local energy are maximised for the host communities.

With the backing of organisations across the UK, including Thrive, Community Energy England are asking government to turn words into action by removing barriers to community energy and strengthening support. Find out more about their Up the Energy campaign here.