Councils can sell electricity to the grid

If there was a market for hot air then some might think councils would make a lot of money selling it. However, it could be the sale of electricity which will help cash strapped coils fill their coffers.

New legislation to allow local authorities to sell unused electricity back to the national grid is announced by Welsh Assembly Government environment minister, Jane Davidson.

The minister has made an Order with the UK secretary of state for energy and climate change, Chris Huhne.

The legislation will let local authorities in both England and Wales sell electricity produced from a range of renewable sources, including wind, solar and aero thermal, from 18 August. This new legislation effectively changes the local government act.

Said Davidson, "I am pleased to approve this legislation which will help with our transition to a low carbon economy as set out in the Assembly Government's energy strategy, A Low Carbon Revolution.

"Now local communities will begin to see the benefit of renewable energy."

Local authorities will be able to play a full part in the development of renewable heat and electricity, as part of their key role in addressing the challenges of climate change and meeting their commitments to sustainability.

"Allowing councils to sell electricity to the national grid will also encourage the development of local authority sponsored sustainable renewables projects, especially at the community level. This will aid the Assembly Government's green energy and climate change targets," she said.

Under the existing regulatory regime, local authorities are not allowed to sell the electricity generated from, for example, a local authority owned wind farm.