Strengthening Local Energy Initiatives: What We Heard from Councils Across the UK

Local energy projects are essential to creating a low-carbon, sustainable future, but they don’t come without challenges. From securing funding to navigating complex policy landscapes, local authorities are tackling tough barriers every day.

That’s why CO2Sense partnered with UK100 to launch a survey for council officers and elected members working in the energy and climate space. We set out to understand what’s working on the ground, where things tend to stall and what’s needed to accelerate local energy delivery. The responses reflect themes we’re already hearing across the sector and will help shape future tools, training and policy support to help councils lead the green energy transition.

Who Took Part

The survey was open from 31st January to 7th May 2025 and gathered insights from a cross-section of councils across England and Wales, including unitaries, districts, combined authorities, and London boroughs.

Local Energy Is a Clear Priority, But Long-Term Support Is Missing

Most councils shared that they have a dedicated officer or team focused on energy, reflecting a strong commitment to local delivery. The key drivers behind their work include reducing emissions, meeting net zero targets and improving the efficiency of council operations.

Many of these councils are already procuring 100% renewable energy and are actively progressing Local Area Energy Plans (LAEPs), whether already in place, in development, or under consideration.

Despite this momentum, dedicated funding remains a significant gap. Councils are still heavily reliant on short-term grants and government schemes, creating uncertainty and limiting the impact of long-term climate planning.

Community Energy: Strong Ambition, Limited Capacity

Councils expressed that community energy is an area of high interest but resources are holding them back. Only a handful currently have dedicated programmes in place, with others either in early development or actively exploring how to get started.

The most common barrier was resourcing, particularly staff time and funding. This reflects what we regularly hear from officers trying to scale up activity in this space.

Policy Awareness Is Growing, but Clarity Is Missing

We asked councils about their familiarity with upcoming national energy strategies, including GB Energy’s Local Power Plan and Regional Energy Strategic Plans (RESPs).

Most councils were aware of these developments, but very few fully understood their objectives or what role they’re expected to play. Only a few councils reported being very familiar with the purpose and scope of GB Energy’s plan.

This indicates a need for better communication and clearer policy direction to ensure local authorities are equipped to contribute effectively.

Financing The Future

Councils are eager to explore private and blended finance models, but face major barriers around capacity, risk and expertise. Many lack staff, struggle to build business cases and are unsure how to structure deals or engage investors.

To move forward, councils say they need:

  • Long-term, stable community energy funding.

  • Clear national policy to support local generation and local sale of electricity.

  • Reform to unlock grid constraints.

  • Dedicated guidance on procurement, legal structures and financial modelling.

  • Clarity on how private/blended finance fits in.

  • Planning incentives and local tariffs.

  • Greater staff and infrastructure resources.

Turning Insight Into Action

This survey confirms what many in the sector already know: local authorities are committed to driving the energy transition, but they need the right support to turn ambition into delivery.

What’s clear is that councils need more than short-term fixes. They’re calling for long-term, dedicated funding for local and community energy projects, clearer national policy and guidance, as well as practical tools to help them implement plans on the ground. Strengthening internal capacity through training, peer learning and accessible finance models is also vital to scaling local energy efforts.

CO2Sense and UK100 are using these insights to shape the next phase of support including building the tools, training and partnerships that councils need to accelerate progress and lead the way in local energy transformation.

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