Perpetual Energy Feb 2009 Rod Edwards Technical Director Perpetual Energy Ltd and Treasurer, Bro...

Perpetual Energy Feb 2009

Rod Edwards

Technical DirectorPerpetual Energy Ltd

and

Treasurer, Bro Dyfi Community Renewables Ltd


Windfarm DevelopmentWindfarm DevelopmentCommunity Involvement and Community Involvement and

BenefitsBenefits

Community Benefits

Community Participation/ownership

Community Consultation


Community BenefitsCommunity Benefits

WHY ?• Windfarms make little long term

contribution to the local economy

• There may be impacts and disturbance to

the local community – particularly during

construction


Community BenefitsCommunity Benefits

• An annual payment to a local community

body is seen as a way of contributing to

the local economy, and as compensation

for any disruption

• NOT a material consideration in Planning

• Sometimes viewed negatively as “Planning

Gain”

• Local Business Rates (~£2000/MW) cannot

be viewed as a community benefit – but

there is a proposal to change this


• Typically, the operator would make an annual cash contribution (typically around £2000/MW) to the local Parish or Community Council (s)

• These bodies are not always well equipped to manage and disburse large sums of money – “only so many times you can paint the Village Hall”

• In some cases, the benefit had to be used in the main for a specific purpose – e.g education grants, energy efficiency measures

Community BenefitsCommunity BenefitsDevelopment of DeliveryDevelopment of Delivery


• This ad hoc arrangement left developers feeling exposed – benefits were not legitimised in the planning system, yet were expected.

• Industry guidance in 1994 set out best practice for community consultation, but offered no advice on community benefit

• Developers are not equipped to distribute and manage the benefits – this should be left to a local body



• As the volume of developments increased, local and regional bodies (particularly Energy Agencies) saw the need for a coherent approach

• Protocols for community involvement were established – Regen SW and Highland Council good examples

• In some cases Trusts have been established (eg Windfall in mid Wales) to specifically manage windfarm community benefits



• Developers became more innovative in proposing community benefits – funding projects that would facilitate longer term economic activity

• Planning policy (particularly TAN8 in Wales) gave some legitimacy to community benefits



• Establishment/consolidation of local bodies for delivery – particularly in areas of concentrated development

• Developers need to be more proactive in establishing community priorities

• For larger developments, a community liaison officer during development, construction and early operation should be considered

• Community liaison groups should be established

Community BenefitsCommunity BenefitsFuture DirectionsFuture Directions


Community BenefitsCommunity BenefitsFuture DirectionsFuture Directions

• Benefits should also be directed at local economic growth – particularly working through established community regeneration programmes

• Working through local regeneration bodies can help to target economic benefits

• Local Authorities (in general) need to be better informed and more open to discussion of community benefits issues

• Lobby Government to allow business rate revenue to accrue to local authority


Community BenefitsCommunity BenefitsCheap Electricity !!Cheap Electricity !!

• “Cheaper Electricity” is often the most expressed wish of local communities

• Under the present legislation, this is nearly impossible:• Suppliers have to offer same tariff throughout their

operating area• Very difficult to arrange where the owner/operator did

not have a supply licence• Consumers have right to terminate contract at 1

month notice

• Government could consider changing regulations to facilitate this


Need to define “Community”...

Community of Interest

Community of Place

Community Participation and Community Participation and OwnershipOwnership


• Most community projects are a mixture of both – local and distant investors involved

• Very few community led projects..• ... perhaps because they are very difficult to

implement – communities normally suffer from difficulties in:

• Access to expertise

• Access to information

• Access to finance



• FSA rules and Companies Act make raising share capital difficult (and expensive)

• Investment Clubs can provide a way round this

• Finance is not the only contribution – time and services are contributed – strengthening community cohesion

• Established groups will offer advise – but remember they are usually volunteers

• A high level of commitment from a group of individuals is required



• Long term commitment is needed – not just during development.

• Community projects can have as much difficulty over planning as commercial developers.

• ...but despite all this, community operation of wind turbines is rewarding – if not financially !!



• Community ownership of one or more turbines in a larger development is an option

• Developer is not well placed (or is unwilling) to solicit community involvement

• A specialist organisation such as Energy4All will undertake this

• This involves promoting the scheme in the local area (and wider), arranging the share offer and establishing the business model



• The community group usually takes ownership of the turbine after commissioning

• The turbine(s) is owned by the community business, but the windfarm operator will be responsible for O&M, and selling of the output

• Distribution of income is responsibility of the community business

• Business is usually a co-operative, or IPS and some profit may be used for community projects



ConclusionsCommunity led projects can be successful, but more support is needed in access to finance, expertise and knowledge

Community involvement in larger developments is possible, but greater developer participation, and support to facilitating organisations is required



Thank You

Perpetual Energy Feb 2009 Rod Edwards Technical Director Perpetual Energy Ltd and Treasurer, Bro...

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