Councils hope to sell electricity to the National Grid

Aug 16 2010 by Adrian Pearson, The Journal

COUNCIL leaders in the North East are hoping to plug funding gaps in their coffers by selling electricity to the National Grid.

At least three authorities in the region have teamed up with the National Renewable Energy Centre in Blyth, Northumberland, to see how they can generate their own energy after the Government announced it would overturn a 34-year ban on councils supplying electricity.

Gateshead Council is one of many to have held discussions with Narec, with provisional proposals including a plan to put solar panels on council housing stock.

Council officers say it is “crucial” they are given the go-ahead to sell electricity if they are to meet carbon reduction commitments and use cash to offset costs.

At Northumberland a feasibility study is being carried out by council officers as they too look to turn leisure centres, council offices, schools and housing stock into mini-power stations.

Anywhere up to £1,000 a year can be generated from just one home, meaning across the region the switchover could bring in a multi-million pound windfall. Steven Caseley, Narec’s director of distributed energy, said councils from across the UK were contacting them for help.

He added: “There is a big push now to find out exactly what this means.

“What we do know is that at a time when there is less money available councils have the chance to actually generate some money to pay for the things that they have to do anyway, such as insulating homes, to comply with green energy laws.

“There is a real chance here for councils to show their entrepreneurial spirit.