@article{c68fd41f70284695b19b0173c8756e31,
title = "Value for money: Local authority action on clean energy for net zero",
abstract = "Local authorities are well placed to realise co-benefits of integrated local energy systems; however, in the UK they have no statutory energy mandate. Planning and developing clean energy are discretionary, and persistent budget reductions, combined with the lack of strategic direction from the UK government for more localised energy provision, limit local capacity, expertise and resources. Nevertheless, some local authorities have led energy initiatives but have been unable to stimulate investment at the pace and scale required to align with net zero greenhouse gas targets. Using evidence from such initiatives, this paper discusses the institutional changes needed to enable local authorities to act. It examines existing climate and local energy plans, and their integral socio-economic value. Using this evidence, investment opportunities from locally led net zero programmes are identified. EU technical assistance funds provided a particularly successful route to local energy developments: based on value of investment secured against initial funding, it is estimated that GBP 1 million technical assistance funding to every local authority would lead to GBP 15 billion investment in local energy. Other potential funding innovations are assessed and the paper concludes with recommendations for policy and resource measures needed to convert local ambition into clean energy and energy saving investment at scale.",
keywords = "social value, local authority, integrated local energy systems, net zero energy, innovative governance",
author = "Katherine Sugar and Janette Webb",
note = "Funding Information: resources (Figure 5). In addition, the Hubs are being tested as a coordinating body for the In addition, the Hubs are being tested as a coordinating body for the English Energy English Energy Efficiency Green Homes Grant: Local Authority Delivery (GHG-LAD) Efficiency Green Homes Grant: Local Authority Delivery (GHG-LAD) scheme, funded by scheme, funded by UK Government [50,51]. UK Government [50,51]. Funding Information: Stimulus funding for place-based local energy systems has the potential to result in bilising Local Energy Investment {\textquoteleft}MLEI{\textquoteright}. These European funding schemes, established virtuous investment cycles, combining improved local technical capacity with health and in 2009 and 2011, respectively, provided {\textquoteleft}technical assistance{\textquoteright} grants to employ staff to economic benefits and carbon savings. Investment transcends multiple governance scales develop investment pipelines over 3–4 years. Local authority recipients had to leverage and actors, such as unitary, metropolitan, county, districts and boroughs and combined investment into energy initiatives in accordance with an agreed target. At the time of data authorities across the UK and can help realise the social value of place-specific investment analysis, the larger of the two schemes, {\textquoteleft}ELENA{\textquoteright}, led by the European Investment Bank, hadof loc103al enerprogrammesgy system. to date across Europe, of which 37 are completed and 66 ongoing. Local level investment in energy systems has been enabled by regional funding from two European Union programmes: European Local Energy Assistance {\textquoteleft}ELENA{\textquoteright} and Mobilising Local Energy Investment {\textquoteleft}MLEI{\textquoteright}. These European funding schemes, established in 2009 and 2011, respectively, provided {\textquoteleft}technical assistance{\textquoteright} grants to employ staff to develop investment pipelines over 3–4 years. Local authority recipients had to leverage investment into energy initiatives in accordance with an agreed target. At the time of data analysis, the larger of the two schemes, {\textquoteleft}ELENA{\textquoteright}, led by the European Investment Bank, had 103 programmes to date across Europe, of which 37 are completed and 66 ongoing. For the 85 programmes with available data, EUR 150 million invested in tgarragnettsfolredsu tsotatihnea bilneveensetmrgeynwt iotfhEthUeRr e5q.u6irbeimllieonntifnotroevloewrycEaUrbRo1n garnadntefunenrdgiyngetfoficrieesnuclyt ipnrEojUecRts2 [046in] v(pes. t5m). eInnt t.aTnhdeemta,r g28e tphraosjehctoswaecrvoesrsb Eeuernofpaerferxocmee tdheed M: eLvEeIr pyrEoUgrRam1mELeE hNavAe fluendd tiontghlee dintvoeEstUmRen3t7oinf EinUvRes 6tm15emnti.llTiohnis idne lmocoanl setnraetregsyt.he significant impact of technical assistIann cethfeu nUdsKf ocrounnteloxctk, integchlonciaclalyl laesdsicslteaannceenefurgnydiinnvgeswtmasenetsf.fective in leveraging invesTthmeepnrto ignrtaom lomcaels eanlseorghyavsyesbteemnesf.i tFsraofmterEtLhEeNirAfo grmraanltes nadlodnaet,eE. UFoRr 2e3x ammilpliloen, a icnr oasisd Etou rfoupneda plmeoopsltet,wskoi-ltlhsi radnsdo efxbpeenretfiiscei adreielisvreerteadin aepdparotexcihmnaitceallyaEssUisRta8n5c9e mdeillilvioenry inunUitKalfotewr tchaeribroEnL EinNvAestgmraenntteantdleodc,aalcsccraulien.gTahtisleiasstbEenUeRfi7tt8in0gm ailplipornoixnimadadteiltyio1n8a0l ilnovceasltmauetnhtosr[i4ti6e]s. and Uadsidnigtiothneale xpaumbplilce osefcEtoLrE NorAgafuninsdaitniogn,sa.n Tinhjee cEtiLoEnNoAf f ufnudnidn gsetot UthKe lmocoaslta aumthboirtiitoieuss leverage target for sustainable energy with the requirement for every EUR 1 grant funding Energies 2022, 15, x FOR PEER REVIEW 9 of 18 leverage factor, an illustrative figure of GBP 1 million in technical assistance funding to ELENA funding led to EUR 37 in investment. This demonstrates the significant impact of technical assistance funds for unlocking locally led clean energy investments. The programmes also have benefits after their formal end date. For example, across Europe almost two-thirds of beneficiaries retained a technical assistance delivery unit after their ELENA grant ended, accruing at least EUR 780 million in additional investments [46]. Using the example of ELENA funding, an injection of funding to UK local authorities would result in major progress in net zero plans and investment: using a 1:37 investment Figure 3. Scaling up local energy through investing in technical capacity within local authorities. The lFeivgeurrae g3e. Sfacacltionrg, uapn liollcuasl ternaetirvgey ftihgruoureg ho finGveBsPti n1g mini ltleiochnn iinca tl eccahpnacicitayl wasitshisinta lnoccea lfauuntdhoinrigti etso. every local authority would represent over GBP 15 billion in local energy investment deliver(Fiactugal deureed3livereinvestment). d investmratioent ratio of theof the local ELENAlocal ELEprogrammesNA programmes (1:37) (1:37) AdaptedAdapted from: from: [46] in [43[46] in [43] ] (p. 13). Publisher Copyright: {\textcopyright} 2022 by the authors. Licensee MDPI, Basel, Switzerland.",
year = "2022",
month = jun,
day = "15",
doi = "10.3390/en15124359",
language = "English",
volume = "15",
journal = "Energies",
issn = "1996-1073",
publisher = "Multidisciplinary Digital Publishing Institute (MDPI)",
number = "12",
}