Cities could help boost UK's green infrastructure

Local authorities and cities could play a pivotal role in transitioning the UK over to low-carbon energy alternatives. A new report from the think tank IPPR suggests that councils and cities could help provide alternatives to the Big Six energy firms, helping make the UK greener and cleaner, while also providing a more affordable and competitive energy system.

The report, entitled 'City energy: a new powerhouse for Britain', calls on cities across the UK to increase their activity in the energy market and drive renewable technologies. It reveals that the biggest utilities in Europe are currently under a lot of pressure as the energy system is changing. Both their market value and balance sheets are being affected by the continued emphasis on green energy.

According to the think tank, a number of groups, including parliamentary factions, are questioning plans for the UK's long-term investment in energy solutions. It states that local authorities and cities could aid local clean generation by increasing investment. 

The IPPR suggests that small-scale power projects are becoming more and more cost effective, while also providing economic benefits for local areas, more jobs and growth opportunities for smaller energy firms.

The report argues that cities that take steps to support and invest in energy projects could help to ensure low carbon power subsidies are awarded to schemes and companies that benefit the local area, rather than large companies. Not only will this provide cheaper energy options, it will also help ensure continued public support of green energy subsidies.

In its report, the IPPR outlines three possible courses of action for cities that could help boost low-carbon energy.

The first recommendation is to create a collective agency to issue local authority bonds. Local councils' pension funds should also be altered to account for social, environmental and corporate governance factors, while also looking for green investments.

The third course of action it recommended was for cities to work alongside the Green Investment Bank on green infrastructure projects that provide a good level of investment. 

Nick Pearce, IPPR director, said: “Local generation technologies like solar and medium-scale wind are radically transforming how energy systems operate, bringing to an end the dominance of centralised generation and distribution. This will create a system which is much more diverse and competitive. 

"Cities should grasp the opportunity this presents to support local job creation and growth and enhance the resilience of local electricity supply. This will ensure that more low carbon subsidies directly benefit British communities.”