Community Benefit from Commercial Renewable Energy Development
‘Community benefit’ typically refers to a gesture made by a commercial developer to a nearby community in relation to the installation of a large-scale renewable project, usually wind.
At present, most arrangements are in the form of a single or annual cash payment which may or may not be paid directly to the community concerned. Benefits can, however, be provided through any suitable mechanism, for example through the creation of jobs and training possibilities, energy efficiency measures and fuel poverty alleviation. There are a number of pathways available for community benefits, and the lack of national legal standardisation means there is room for creative and innovative use of benefits.
Relevant Readings:
Many local authorities provide a set of guidelines or policies on community benefit payments, and any such documents are often available on your council's website.
Community Energy Scotland's Vision
Community Energy Scotland believes that the widespread drive to generate renewable energy should be matched with a drive to transform the way energy is used and that this should start in communities close to energy developments. Using creative approaches and strong engagement between developers and communities to address mutual priorities, there is scope to enhance communities and the public perception of energy developments.
We would hope that communities will work with developers to create a benefit plan which is suited to the community’s geographical area, needs, desires and long-term sustainability goals. We believe these benefits should have a strong focus on energy and the environment for example, addressing fuel poverty, renewable transport, energy costs and heating, but priorities should be determined by the community. Communities should be encouraged and supported to forge a relationship with the developer as soon as possible, and early discussions about community benefits are recommended. Dealing with community benefits may be a daunting challenge, but it is also an exciting one.
What are typical issues?
No community or development is the same but common issues are emerging. These include: a lack of confidence in the community to engage with a developer; dominance by vocal anti-development campaigners; a lack of clear information on a development; lack of engagement by developers; lack of clarity on what payments or other benefits may be available; how far the benefits should be distributed and who should distribute them.
What can Community Energy Scotland do to help?
Community Energy Scotland supports the development of communities through their own renewable energy developments and is able to advise communities on the nature and likely requirements of commercial developers. We aim to equip communities with the skills and confidence to engage effectively and secure the most appropriate benefits for their community. As a charity that supports communities to develop renewable energy, we do not offer support to groups opposing developments.
We hope to set up links between communities to allow exchange of knowledge and experience. If your community has been approached by a developer, or you think you may be able to approach a developer to ask about benefits, you may benefit from speaking to another community in a similar situation.
Community Energy Scotland aims to complement the guidelines from local authorities, and can help communities in dealing with developers. Just as each renewable energy site is different, so each community benefit fund will vary accordingly. It is therefore difficult for local authorities, developers or Scottish Government to produce one set of rules which can apply to all funds.
Community Energy Scotland therefore aims to provide a service tailored to each community’s needs. We provide a question and answer service, and will make all past queries available on this webpage, to help future communities. Please contact us if you feel you would benefit from guidance or support in community benefit negotiations.
Members can also benefit from our Knowledge Exchange Package.
