Councils should work with local energy companies - Patrick Harvie

COUNCILS should be involved with locally run public energy companies to help meet renewable energy targets, Green party co-leader Patrick Harvie told MSPs today.

Mr Harvie challenged all of Scotland’s 32 local authorities to get on board after the local elections in May, saying it should be considered “bizarre” if they do not.

Leading a debate on the issue at Holyrood, he said: “Shortly, Scotland is going to be electing councils again for another term in office at local government level.

“By the time the councils we elect in May have completed their term in office, it should be seen as the natural, default situation that every single one of them is working with a local energy company, one model or another, wholly public, a partnership, a co-op, whatever. Different councils will find different solutions appropriate for their areas.

“But it should be bizarre and unthinkable in a few years’ time that local government doesn’t see itself as having a role in public investment. In energy efficiency, yes, but also in renewables. That investment can be paid back if local energy companies also have the power to become electricity retailers in the community.

“I believe there is the opportunity for a transformational vision, not just for meeting our renewable energy targets in Scotland but of local public ownership and community ownership as well.”

Mr Harvie said the Scottish Government is missing a trick, arguing that a share of the wealth from the growing industry must be kept in public hands.

Benefits would include revenue for public services and support for an industry with the potential for common good, he said.

Mr Harvie said the move would combat a growing perception of “private sector profiteering”.

The Scottish Government wants renewable energy sources to meet the existing demand for electricity by 2020.

Other parties are being urged to support the idea of establishing public energy companies at local authority level and for the Government to help in their development.

Energy Minister Fergus Ewing reaffirmed the Scottish Government commitment to climate change targets, agreed by Parliament.

He added: “We want to see Scotland’s communities benefiting as owners, not just recipients of cheques, no matter that that does in itself create great benefit. Once again, we are in agreement there.”

About £25 million is being spent over the next three years to support locally owned renewable projects across the country, he said.

Mr Ewing warned that there are challenges and risks around the suggestion that councils should enter the energy wholesale market.

“This is obviously very, very uncomfortable territory for public sector bodies on fixed budgets which they tell us at present are stretched to the limit,” he said.