ENERGY
Access to energy is a human right. No one should freeze or bankrupt themselves to keep the lights and radiators on while CEOs pocket millions. Privatisation has failed. After decades of market chaos, price gouging, and corporate bailouts, it’s clear: profit has no place when it comes to the essentials of survival.
Therefore, we would take energy and water companies into public ownership with an end-goal of building community-owned cooperatives of off-grid small-scale systems with assets held in perpetual trusts, with the State retaining ownership of transmission networks and strategic reserves. Any debt currently held by the companies will the liability of the shareholders and/or creditors as they have extracted so much surplus profit via subsidies over the years.
Scrap standing charges. No company should be receiving money from consumers simply for supplying when their is no use.
Until renationalisation is completed, we would switch the energy supply system from marginal cost pricing to a competitive hybrid market model. This would retain the market efficiency offered by MCP while providing low, stable bills for users.
Energy reservation scheme: Suppliers must prioritise the domestic market first up to demand before being allowed to export surpluses.
Nationalise utilities at first then move to community-owned cooperatives of off-grid small-scale systems with assets held in perpetual trusts, with the State retaining ownership of transmission networks and strategic reserves.
Community ownership makes future privatisation difficult and perpetual trusts will legally prevent the sale of assets, ensuring that nobody will ever again be ripped off by greedy fat-cats.
We will nationalise the utility companies by putting them into special administration so assets can be retaken but without the debt which should be left to the shareholders/lenders. The lenders gave loans to companies that used them to pay bonuses rather than investing in productive assets. This was a terrible deal which has resulted in the companies no longer generating income from their assets and now cannot repay the loans. While lenders have the right to be reimbursed by the value of any assets, these are now worth zero, and we doubt they want to be paid back in reservoirs and leaking pipes. The State should not be expected to bail out lenders who fail to ensure their borrowers will use their money responsibly to generate future returns, particularly when lending to companies that are operating a natural monopoly which is a licence to print money. If capitalists want the rewards of capitalism, they must also shoulder the burdens of it as well.
Now that nuclear technology has advanced far beyond the stereotypical image of a nuclear power plant, we are open to investigating building next-generation nuclear reactors (modular, molten salt, and fast reactors) if they can safely provide energy at low cost to consumers. If they are determined to be feasible within those parameters, we would look to initially build them on existing nuclear sites until proof of concept and a provable track record is established and then expand after local consultations.
A pro-local energy production policy encouraging community generation of power:
Any group who applies to erect up to two wind turbines should get automatic planning permission within 3 months of application.
Local communities should be able to buy at the local cost of production.
The National Grid should be required to support these projects so local power can be logged into the system and bought locally. There should be no excessive charges for carrying energy 5-10 miles.
Banks should be required to support these facilities with low-price loans on long-term lending, and made a requirement of their licence to operate.
DETAILS
1. WHOLESALE MARKET: MARGINAL COST PRICING WITH SAFEGUARDS
Keep competitive bidding (merit order) to incentivize cheap renewables.
But add a "soft price cap" (e.g., £200/MWh) to prevent extreme spikes.
Example: EU’s "Revenue Cap" on inframarginal generators (wind & solar) during crises.
Why?
Renewables (near-zero marginal cost) still dominate the merit order.
Prevents gas price volatility from fully passing to consumers.
________________________________________
2. RETAIL MARKET: TWO-PART TARIFF & SOCIAL PRICING
A fixed charge covers grid costs, scaled by income/home size.
A variable charge reflects smoothed wholesale prices, not real-time spikes.
Social tariffs gives discounts for low-income households, funded by progressive levies.
Example:
Texas (ERCOT) + California’s CARE program hybrid.
Why?
Stabilizes bills while keeping efficiency incentives.
Protects vulnerable users without distorting the market.
________________________________________
3. LONG-TERM CONTRACTS & CAPACITY MECHANISMS
Contracts-for-Difference (CfDs) guarantee renewables a fixed price, shielding consumers from volatility.
Strategic reserves: Pay gas plants for backup (not market participation), avoiding price manipulation.
Example:
UK’s CfDs for offshore wind gives locked-in low prices.
Germany’s capacity reserve for emergencies only.
Why?
Ensures reliability without letting fossil fuels dictate prices.
Drives down renewable costs via economies of scale.
________________________________________
4. PERFORMANCE-BASED REGULATION (PBR) FOR UTILITIES
Reward utilities for:
Hitting renewable targets (e.g. 80% clean energy by 2030).
Reducing system costs (e.g. grid flexibility, storage).
Penalize for over-reliance on fossil fuels.
Example:
New York’s REV program where utilities earn bonuses for decarbonisation.
Why?
Aligns utility profits with societal goals (clean, affordable energy).
________________________________________
5. CARBON FEE & DIVIDEND FOR FOSSIL PHASE-OUT
Tax fossil fuel, internalising pollution costs.
Rebate 100% to households, offsetting energy costs for most consumers.
Example:
Canada’s carbon rebate (most families break even or gain).
Benefits:
Makes coal & gas uneconomical vs. renewables.
Politically palatable and protects consumers.
________________________________________
RESULTING SYSTEM: BEST OF ALL WORLDS
Low Prices
CfDs + two-part tariffs & social pricing
Stability
Smoothed wholesale pricing & capacity mechanisms
Renewables Incentive
Merit-order markets & PBR & carbon pricing
Equity
Progressive tariffs & carbon dividend
________________________________________
REAL-WORLD SUCCESSES
1. Denmark
Marginal pricing in wholesale market & 90% renewables via CfDs.
District heating co-ops keep prices stable.
2. Texas (ERCOT) & California Hybrid
Competitive renewables (ERCOT’s wind boom) + state-backed storage programs (California).
3. Uruguay
100% renewable electricity via long-term PPAs & strategic reserves.
________________________________________
FINAL MODEL
A hybrid of:
1. Competitive wholesale markets (with price smoothing),
2. Two-part retail tariffs + social pricing,
3. Long-term renewables contracts (CfDs),
4. Performance-based utility regulation, and
5. Carbon pricing with rebates
would deliver affordability, stability, and rapid decarbonisation better than pure markets or pure regulation alone.
COMPETITIVE HYBRID MARKET MODEL FOR ENERGY SUPPLY
LOCAL ENERGY PRODUCTION
1. EXECUTIVE SUMMARY
This policy proposes a decentralized energy system where communities, local authorities, and small businesses generate, own, and benefit from renewable energy. By shifting away from reliance on multinational energy corporations, the UK can cut emissions, reduce energy bills, create local jobs, and strengthen energy security.
2. OBJECTIVES
Democratize energy production to empower communities to own and manage renewable energy projects.
Local communities buy energy at cost price, reducing dependence on volatile global energy markets and cut household bills.
Boost local economies by creating skilled green jobs in installation, maintenance, and energy co-ops.
Accelerate Real-Zero goals by replacing fossil fuels with locally generated wind, solar, and small-scale hydro.
Improve grid resilience & support local projects, reducing strain on the national grid through decentralized microgrids and storage.
________________________________________
3. POLICY MEASURES
A. Community Energy Generation & Ownership
Mandate local authority-led renewable projects:
Require every local council to develop at least one community-owned renewable project (e.g. solar farms, wind turbines, micro-hydro) by 2034.
Provide grants and low-interest loans through a National Community Energy Fund.
Right to Local Energy:
Give communities first refusal on buying or developing local renewable projects before private corporations.
Communities near wind/solar projects can purchase energy at the local cost of production (not market rates).
Energy co-ops & councils can sell directly to residents via local tariffs, bypassing corporate suppliers.
No markups by middlemen – energy sold locally must be at cost + fair maintenance fees.
Expand the Right to Invest (similar to Scotland’s community right-to-buy land).
"Two Turbines, No Delays" Rule:
Any community group, farmer, or small business applying to erect up to two wind turbines (under 15MW total) should automatically get planning permission within 3 months, provided:
Environmental impact assessments show no major harm.
There is no significant objection from immediate neighbours within 500m.
No council vetoes – only national government can block on national security or critical habitat grounds.
Priority Grid Connection:
National Grid must reserve capacity for small-scale wind projects.
Connection delays capped at 6 months (vs. current 5+ years for some).
B. Financial & Regulatory Support
Feed-In Tariffs 2.0:
Restore and expand guaranteed payments for households and businesses selling excess renewable energy back to the grid.
Tax Breaks for Local Energy Co-ops:
Exempt community energy projects from business rates and provide VAT cuts on renewable installations.
Green Municipal Bonds:
Allow local councils to raise funds for energy projects through government-backed bonds/from Local Development Bank.
Licence Requirement for UK Banks:
Any bank operating in the UK must offer 20-year low-interest loans (<2% APR) for community energy projects.
Green lending quotas: At least 5% of total loans must go to renewables by 2035.
Government Loan Guarantees:
Treasury backs 80% of losses on local energy loans to reduce bank risk.
"Green ISA" for Local Energy:
Savers can invest tax-free in community energy bonds.
C. Household & Small Business Support
Free Solar Panel & Insulation Schemes:
Offer fully funded solar panels and heat pumps for low-income households, repaid through energy bill savings similar to Scotland’s Warmer Homes Programme.
Neighbourhood Energy Collectives:
Encourage street-by-street solar/battery microgrids where neighbours share energy and reduce bills collectively.
Business Energy Grants:
Provide SMEs with grants to install rooftop solar, battery storage, and EV charging points.
D. Grid Modernisation & Storage
Local Smart Grids:
Upgrade local grids to handle two-way energy flows, allowing households to sell excess power.
Neighbourhood Battery Storage Hubs:
Install community battery storage to store excess renewable energy and prevent waste.
Peak Demand Reduction Incentives:
Pay households and businesses for reducing energy use during peak times via smart meters.
"No Excessive Distance Charges" Rule:
No extra fees for transporting energy within 10 miles of generation.
OFGEM must cap grid access costs for small producers.
Real-Time Local Energy Trading:
Mandate smart metering to allow peer-to-peer (P2P) energy trading within communities.
National Grid must upgrade local infrastructure to handle decentralized power flows.
E. Skills & Job Creation
Local Energy Academies:
Train 10,000 new community energy technicians annually through apprenticeships and the Job Guarantee.
Job Guarantee in Deprived Areas:
Prioritise energy projects in former industrial towns and rural areas to tackle unemployment.
________________________________________
4. FUNDING & IMPLEMENTATION
Initial £5bn per year from:
The Bank of England, directly to local authorities or community bodies.
Reallocated fossil fuel subsidies.
Green bonds and public-private partnerships.
Phased Rollout:
Year 1-3: Pilot schemes in 50 local authorities.
Year 4-6: Nationwide expansion, with all new housing required to include solar and wind.
________________________________________
5. EXPECTED OUTCOMES BY 2040
50% of UK households participating in local energy schemes.
30,000+ community-owned energy projects (up from c. 500 today).
20% reduction in average energy bills for participating households.
500,000 new green jobs in installation, maintenance, and energy co-ops.
10% of UK electricity generated by community energy (up from <1% today).
________________________________________
6. POLITICAL & PUBLIC SUPPORT
Cross-party appeal already exists, with Labour’s "Local Power Plan" and the Green Party’s energy democracy policies aligning with this.
68% of Brits support community-owned renewables (Co-op UK, 2023).
________________________________________
7. LEGAL & ENFORCEMENT MECHANISMS
Amend the Town & Country Planning Act 1990 to remove council veto powers for small wind.
New OFGEM rules to penalise the National Grid for unfair local energy charges.
Banking licence reviews by the FCA – failure to meet green lending quotas should incur fines.
________________________________________
8. WHY IT WORKS
Fixes the UK’s slow planning system which currently blocks 90% of onshore wind.
Ends energy poverty by letting communities buy power at cost.
Forces banks & grid operators to serve the public, not profits.
NATIONAL GRID UPGRADE
1. INFRASTRUCTURE MODERNISATION
Grid reinforcement: Expand and reinforce transmission and distribution networks to handle increased demand, especially with the growth of renewables and electric vehicles (EVs).
High-Voltage Direct Current (HVDC) links: Build more HVDC interconnectors to improve efficiency in long-distance power transmission and integrate offshore wind farms.
Substation upgrades: Modernize aging substations with digital switchgear and smart monitoring systems.
2. SMART GRID IMPLEMENTATION
Advanced Metering Infrastructure (AMI): Roll out smart meters nationwide to enable real-time demand management.
Demand response systems: Implement systems that adjust demand dynamically to balance the grid.
Distributed Energy Resources (DERs): Better integration of rooftop solar, battery storage, and microgrids into the grid.
3. DECARBONISATION & RENEWABLE INTEGRATION
Grid flexibility: Enhance storage solutions (e.g. grid-scale batteries, pumped hydro) to manage intermittent renewable generation.
Offshore wind & interconnection: Expand offshore wind capacity and improving connections to remote generation sites.
Phase out fossil fuels: Reduce reliance on gas-fired peaking plants in favour of low-carbon alternatives.
4. DIGITALISATION & A.I.
Grid monitoring & A.I. predictions: Use IoT sensors and A.I. for predictive maintenance and fault detection.
Blockchain for energy trading: Enable peer-to-peer energy trading via decentralised ledgers.
5. POLICY & REGULATORY CHANGES
OFGEM & government support: Streamline planning permissions for new infrastructure and incentivise private investment.
Carbon pricing & incentives: Strengthen policies to accelerate green energy adoption.
Grid ownership reforms: Potential restructuring to improve coordination between transmission (National Grid) and distribution networks.
6. CYBERSECURITY & RESILIENCE
Protect against cyber threats: Strengthen defences as the grid becomes more digital.
Climate resilience: Harden infrastructure against extreme weather.
7. INVESTMENT & FUNDING
Public & private capital: Significant investment (estimated tens of billions) from government, private sector, and international partners.
Innovation funding: Support R&D in grid technologies (e.g. superconducting cables, hydrogen storage).
8. WORKFORCE & SKILLS
Training programs: Upskill engineers in smart grid tech, cybersecurity, and renewable integration.
Attract talent: Encourage STEM professionals to work in energy infrastructure.
9. PUBLIC ENGAGEMENT
Community involvement: Gain public support for new infrastructure projects (e.g. overhead lines, substations).
Consumer behaviour: Encourage energy efficiency and participation in demand-side response programs.
ESTIMATED COSTS & TIMELINE
Cost: Likely exceeding £100 billion over 10–20 years, but this is no trouble for the UK government as it is our currency issuer. Its constraint is the availability of resources, not money.
Timeline: Full modernisation could take until 2040 to align with net-zero targets.
CHALLENGES
Planning delays (e.g. objections to new pylons).
Supply chain bottlenecks (e.g. transformer shortages).
Balancing affordability for consumers.
SUBSCRIBE
Subscribe to our mailing list to hear about news and policy announcements
MISSION STATEMENT
CONTACT US
Like what you see? Got an idea of your own?
Let us know, we'd love to hear from you!