From National Policy to Local Action: Understanding the Local Power Plan in MK

The UK Government’s new Local Power Plan could mark a significant shift in how communities generate, own and benefit from clean energy. With investment planned for community energy across the UK, Milton Keynes has a major opportunity to build on its existing experience and ensure that more of the benefits of the energy transition, from lower bills to local investment, stay within the MK community.
Great British Energy (GBE) Local Power Plan

Feature image: Community energy investment to build wealth and power. Source: Great British Energy

The recent announcement that the UK Government will invest up to £1 billion in community energy marks a turning point for how energy is generated, owned and paid for across the country.

For Milton Keynes, it creates a real opportunity to keep energy benefits local rather than watching profits flow out to large utilities.

This funding sits within the government’s new Local Power Plan, overseen by Great British Energy. The plan is designed to help communities own clean energy projects such as solar, wind and heat networks, while also supporting local energy advice and bill reduction. For Milton Keynes Community Energy, this is not abstract policy. It directly aligns with what we already do and what we are ready to scale.

What is the Local Power Plan

The Local Power Plan aims to support over 1,000 community and local energy projects across the UK. It will provide grants for early feasibility work, loans for construction and opportunities for communities and councils to take shared ownership in larger schemes. The government’s intention is explicit: democratise the energy system, build local wealth and improve public confidence in the transition to net zero.

Community energy has already proven its value. Since 2017, installed capacity across the UK sector has grown by 81 percent, and membership has nearly tripled to around 85,000 people. The new funding is intended to accelerate that progress and remove long standing barriers around finance, grid access and skills.

Who we are and why credibility matters

Milton Keynes Community Energy is a not for profit, community benefit society. We develop and operate renewable energy projects that are owned for the benefit of local people. Our approach is simple. Generate clean power locally, use the income responsibly and reinvest surplus profits into programmes that support residents.

That reinvestment already includes Home Energy MK, which helps households reduce energy bills through practical advice, workshops and support with energy efficiency.

Community energy is not just about generation. It is about tackling fuel poverty, improving resilience and keeping value circulating locally.

Community energy keeps value local. Projects owned by communities reinvest surplus income into local priorities such as energy advice, schools, transport and warm homes rather than paying dividends to distant shareholders.

Why this matters for households

While community energy cannot control global gas prices, it can soften their impact. Locally generated electricity can be sold directly to public buildings, schools and businesses. Surplus income can fund energy saving advice and retrofit support. Over time, this reduces demand and exposure to volatile markets.

As Ed Miliband noted in a recent announcement, community owned energy can also help cut local energy bills by producing cheaper power close to where it is used and by giving communities a stake in the system rather than leaving them as passive bill payers.

“Community energy is about more than clean power. It is about trust, fairness and keeping the benefits of the energy transition rooted in the places where people live. The Local Power Plan gives communities like Milton Keynes the tools to achieve more, faster.”

What happens next in Milton Keynes

More detail on funding routes will be published later this year. In the meantime, Milton Keynes Community Energy is working with local partners to identify projects that can deliver early impact, from solar on public buildings to expanded home energy support.

For residents, the message is clear. This £1bn commitment turns community energy from a niche idea into a national priority. Milton Keynes has the experience, the partnerships and the public appetite to lead.

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