Auditel Consultant:
Nick Beaumont-Jones

Rule change allows councils to sell renewable power

13 Aug 2010 | Filed under: Efficiency savings, Industry Comment

It had to come eventually. With so much pressure on local authority funding, Councils have been looking at a number of revenue generating schemes to balance their books.

Swindon Borough Council have been working in partnership with a local company to set up and operate a free wi-fi network in the town and now we hear from Utility Week that Councils will be able to sell renewable electricity to the grid from next week following the government’s decision to overturn a law put in place at the time of privatisation.

Currently local authorities can use renewable energy locally and receive feed-in tariffs for projects under 5 megawatts. But they are prevented from selling any excess renewable electricity into the grid (other than that generated from combined heat and power), and also from benefiting from the additional export component of the feed-in tariff.

As of Monday 18th August, that situation will change. As a result, the Department of Energy & Climate Change said local authorities in England and Wales could gain up to £100 million per year in extra revenue.

It will be interesting to see whether the more enterprising local authorities take advantage of this new freedom and whether it will herald more money-making schemes being introduced.