Switching on to local and community energy: Planning local power
Comment by Tom Elliott, Senior Energy Transition Advisor at Energy Systems Catapult
Great British Energy aims to turn the energy transition into a major economic opportunity for the UK. This is a rallying cry for community energy groups, local authorities and innovators that want to access support for energy projects that create value locally.
Success goes beyond reaching carbon targets. It’s about building modern, resilient energy systems. And it requires new delivery models, collaboration and ways of mobilising investment – opening the door to community benefit and shared ownership.
While project design and implementation can be complex, Energy Systems Catapult has spent the last decade helping local authorities, communities, innovators and industry navigate the process, turning opportunity into reality.
Three initiatives we’ve worked on stand out:
Smart Local Energy Systems (SLES): identified emerging business models and showed how partnerships can be structured to deliver genuine community benefit.
These show how local generation and smarter approaches to matching local demand are already helping places and innovators unlock the economic, social and system benefits at the heart of Great British Energy’s mission.
SLES: Creating Investable, Scalable Local Energy Markets
One of the most powerful opportunities in the energy transition lies at the local level. Smart local energy systems (a way to bring together different energy assets and infrastructure in a local area and make them operate in a smarter way) can reduce bills, create skilled jobs and unlock opportunities for public ownership. Yet many local authorities and community energy innovators face fragmented markets and unclear routes to scale.
Great British Energy’s strategy recognises this challenge and places strong emphasis on ‘GBE Local’, a commitment to empower communities, support local authorities and ensure that the benefits of clean energy flow directly to people and places.
What the Catapult did
Through the Prospering from the Energy Revolution (PfER) programme, the Catapult evaluated 25 pioneering smart local energy systems projects across the UK. From this, we identified five emerging business models that make local energy systems more investable, scalable and replicable:
marketplace models that connect local projects with investors
local energy markets that link local generation with local demand
local flexibility markets that reduce grid constraints
virtual network management approaches that optimise local energy flows
anchor asset models that derisk emerging technologies such as heat networks, electric vehicle (EV) hubs and storage
These models demonstrate how local authorities and communities can take on different roles – convenor, investor and operator – depending on their capacity and ambition. They also show how to structure partnerships that deliver real community benefit and unlock wider social and economic value.
UCEGM: Turning local ambition into delivery
Cities and regions across the UK have ambitious Net Zero plans, but many struggle to turn strategy into delivery. Barriers include limited access to capital, complex procurement processes and uncertainty around commercial viability. Yet the economic opportunity is enormous. Local clean energy projects can create skilled jobs, reduce long-term energy costs and stimulate local supply chains. Increasing revenue certainty through power purchase agreements (PPAs) is also key to unlocking investable business models.
What the Catapult did
The UCEGM programme showed what is possible when local ambition meets whole system expertise. Working with five Greater Manchester local authorities, the Catapult helped deliver a coordinated programme that deployed clean energy across the region, alongside the design and validation of PPA business models.
The results speak for themselves:
10 MW of new renewable generation capacity
8,881 MWh of clean electricity generated annually
15 renewable energy assets delivered across the region
These assets included solar panels, battery storage and EV charging infrastructure, demonstrating the breadth of opportunity available when supported by the right expertise.
UCEGM is a powerful example of how public sector leadership, supported by Catapult expertise, can unlock deployment at pace and scale. It also shows how regional collaboration can accelerate delivery and maximise public benefit, a theme strongly echoed in Great British Energy’s strategy.
To build on this success, Great British Energy could provide capital to replicate UCEGM style programmes across the UK, support local authorities to identify investable sites and business models, and enable blended finance approaches that crowd in private investment. Backing regional delivery bodies to coordinate multi-authority programmes would also help accelerate progress.
Local area energy planning and community energy: A powerful delivery partnership
Local authorities often face fragmented governance, inconsistent data and limited capacity, making it difficult to identify where to target interventions. At the same time, community energy groups have the passion and local legitimacy to deliver projects. But they often lack access to high quality data or clear routes to ownership and action.
Great British Energy’s strategy emphasises local empowerment and public benefit, and the Leicestershire CAN demonstrator shows how Local Area Energy Planning (LAEP) and community energy can work together to deliver exactly that.
What the Catapult did
Leicestershire CAN brought together local government, universities, community partners, energy networks and the Catapult to accelerate Net Zero delivery. The project delivered a full, whole-system LAEP, alongside a Community Energy Pathway developed with Green Fox Community Energy, which built the capacity of local groups and strengthened collaboration across the region.
The link between LAEP and community energy is particularly powerful:
LAEP identified hundreds of thousands of potential projects across heat, power, transport and buildings.
the LAEP Lens visualisation platform democratises access to this data, giving community groups the same visibility as developers and network operators.
the Community Energy Pathway helps groups act on those opportunities, turning insights into real, locally owned projects.
Together, this creates a best practice, replicable model for other regions: LAEP provides the evidence base, and community energy provides the delivery mechanism, ensuring community benefit and empowerment.
Let’s solve it together
Great British Energy’s strategy is a welcome signal of national ambition, but delivery will depend on evidence, capability and practical models that work on the ground.
The Catapult has been supporting the sector to build this foundation.
We’ve shown how to design, finance and deliver clean energy projects that create jobs, reduce bills and strengthen local economies.
If you’re exploring opportunities aligned with Great British Energy’s mission, whether you’re a local authority, community energy innovator or regional body, the Catapult team would be delighted to discuss how we can support you.
Click on the ‘get in touch’ button below to start a conversation and take the next step.
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Find out more about how Energy Systems Catapult can help you and your teams
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Want to know more?
Find out more about how Energy Systems Catapult can help you and your teams