Labour will work with councils to set up publicly-owned power stations in an effort to challenge the Big Six energy suppliers, shadow energy secretary Lisa Nandy has said.
Ms Nandy said there should be nothing to stop every community in the country taking control of its own energy supply as she called for a "clean energy boom" in cities as part of a move to "democratise" the sector.
During his Labour leadership campaign Jeremy Corbyn pledged to challenge the "failing energy cartel" of the Big Six suppliers, potentially nationalising them.
But shadow energy secretary Lisa Nandy told the Labour Party conference in Brighton: "Jeremy and I don't want to nationalise energy. We want to do something far more radical. We want to democratise it."
Under the proposals local communities will be given the opportunity to set up their power plant or take over existing renewable facilities.
Ms Nandy said: "There should be nothing to stop every community in this country owning its own clean energy power station.
"Across the country schools are already taking the initiative and going solar. Generating power and heat for their own use.
"With the right support, community-based energy companies and cooperatives could be a new powerhouse, building us a path to a more secure energy future.
She went on: "Our city and county regions can lead the world. They can point the way towards a safer, brighter, more secure future, to be that light on the hill for all of us who care about the cost of our energy - to our family budgets, our businesses and our environment.
"Let's not wait for this Government because let's face it, we'd be waiting forever. Let's seize the initiative and put power back into our own hands."
In a policy document produced for his leadership bid, Mr Corbyn set out plans for a German-style system of small, local energy producers which increased the choice available for households.
It said a typical household in Germany can choose to buy its energy from over 70 different suppliers, with a national total of around 1,100 firms competing.
Half of German energy suppliers are owned by local authorities, communities and small businesses, with more than 180 German towns and cities taking over their local electricity grids, selling themselves cleaner and cheaper power they increasingly produce for themselves.
During the leadership campaign, Mr Corbyn told Greenpeace: "I would personally wish that the Big Six were under public ownership or public control in some form."
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