The UK’s plan for regional energy devolution

Rinnai’s Chris Goggin provides an overview of plans to devolve regional energy decision making to

local authorities. Will the introduction of a decentralised system help move the UK towards net

zero?

A full plan to devolve power to a local level has been published by the UK government. The ‘English

Devolution Whitepaper’ details how the current centralised UK government system can transition

into a more localised form of governance that is sensitive to regional requirements.

Currently, all major decision making relating to regional and local policy is set by centralised

government agencies. Future devolved regional authorities will be more aware of local demands and

will provide relevant solutions designed to interact with the local environment and economy. Town

mayors could become pivotal figures in policy enforcement.

Devolution in the UK is not a new concept. When Margeret Thatcher became Prime Minister in 1979

the then-Conservative government began decentralising local authorities and transferring regional and local decision making to Whitehall.

The English Devolution Whitepaper details the new powers regional authorities will hold regarding

localised energy matters:

• Control of retrofit funding as part of the Integrated Settlements, providing a strengthened

route to local delivery of the Warm Homes Plan.

• Strategic Authorities will have a strategic role in the delivery of the Great British Energy Local

Power Plans, delivering local sustainable energy generation.

• They will also have a role in the wider energy system, delivering our transition to net zero,

become the zoning co-ordinators for local heat networks, and with their plans taken into

account in the National Energy System Operators’ Regional Energy Strategic Plans.

• The Strategic Authorities’ role in leading Local Nature Recovery Strategies will be expanded.

Two UK areas that have been granted evolution are York and North Yorkshire, who have combined

to create the York and North Yorkshire Combined Authority (YNYCA) and have been overlooking

local and regional matters since 2022. The YNYCA is committed to becoming a net zero region by

2034 and carbon negative by 2040.

To achieve this the YNYCA has launched several initiatives. In 2023 a £7 million net zero fund was

made available to carbon-reducing projects across the region. A new £10 million Carbon Negative

Challenge Fund is designed to accelerate the introduction of carbon-reducing technology and

systems, which will run until 2028. Devolution has enabled local funding to be directed towards

localised issues.

Part of this funding focuses on decarbonising commercial buildings with a selection of energies and

technologies, including heat pumps and green hydrogen. This will ensure that localised gas

consumption is reduced while still being able to use current infrastructure.

The issue of energy could present a variety of challenges. UK energy decisions are currently made up

by a national government that views energy distribution along national requirements – not regional.

For example, the rural east of England is made up of vast amounts of flat farmland which has access

to regular sunlight. These conditions mean the area is ideal for solar power generation. Coastal areas

with steep inclines will be better suited towards offshore and onshore wind manufacturing. Yet both

landscapes are currently reliant on natural gas for energy.

In a decentralised approach the region’s requirements will be considered. For example, if a natural

gas-based northwestern UK industrial city gains access to a successful hydrogen economy, hydrogen

could become the easiest way to heat homes and businesses. Although devolution can be regarded

as a more fluid form of governance, potential friction between national net zero goals and local energy demands could become apparent.

What happens if a certain area authority prefers to use cost effective but environmentally harmful

natural gas instead of renewables? What if an economically split region adopts an expensive

decarbonising solution? And what if stringent net zero aims are introduced, forcing government to

make devolved councils adopt strategies that are not consistent with their own?

Devolving local energy affairs to regions is a good idea in theory, but there is a possibility for friction

around national net zero aims, local energy options and, therefore, costs that could arise from a

decentralised energy approach.

National net zero objectives are currently enshrined in law and therefore have to be obeyed – but an

approach centred around regional autonomy cannot comply with previously agreed policy that is

supposed to affect national energy options. The two ideas would appear to be incohesive.

Constituents could potentially demand energies that will have to be delivered even if those sources

of power go against net zero aims. Town mayors and locals alike will hold decision-making power,

and it is highly likely that cost will be the principal concern.

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