www.renewable-uk.com

A Community Commitment The Benefits of Onshore Wind February 2011 RenewableUK is the trade and professional body for the UK wind and marine renewables industries. Formed in 1978, and with 657 corporate members, RenewableUK is the leading renewable trade association in the UK. Wind has been the world’s fastest- growing renewable energy source for the last seven years, and this trend is expected to continue with falling costs of wind energy and the urgent international need to tackle CO2 emissions to prevent climate change.

In 2004, RenewableUK expanded its mission to champion wave and tidal energy and use the association’s experience to guide these technologies along the same path to commercialisation.

Our primary purpose is to promote the use of wind, wave and tidal power in and around the UK. We act as a central point of information for our membership and as a lobbying group to promote wind energy and marine renewables to government, industry, the media and the public. We research and find solutions to current issues and generally act as the forum for the UK wind, wave and tidal industries, and have an annual turnover in excess of one million pounds. 1

Contents

Introduction 2

1 Case Studies: UK Onshore Manufacturing 5 Jones Bros 6 BGB Innovation 7 Mabey Bridge 8 Converteam 9

2 Case Studies: Community Benefits 11 Cefn Croes 12 Burton Wold 13 Vectis 14 15 Earlsburn 16 Harlock Hill and Haverigg II 17 Westmill Wind Farm Co-op

3 Community Benefits Protocol 19 Our Community Commitment 20 2

Introduction

Onshore wind is our cheapest large local benefits – such as new jobs and scale renewable energy source. It is new skills training – can be built already delivering significant amounts into proposals for development. of power to our homes and businesses, and it will make a significant I know that there are already a number contribution to meeting our climate of excellent examples of wind farm change and energy security goals. developers engaging positively with communities and some innovative However, the development of onshore approaches to ensuring that some of the wind has not been without its challenges benefits of developments remain in the and we shouldn’t ignore this. There has local area. It makes sense that as many been a sense in some local communities communities as possible should benefit that wind developments are imposed in a similar way, and should have the best on them. It has also been the case that possible clarity about what to expect communities can see what they will lose from developers. I therefore warmly by having a windfarm in their midst, but welcome the initiative that RenewableUK cannot see what they gain. has taken in bringing forward this Protocol, underpinning the wider work I am clear that there needs to be a new on community engagement being made relationship between wind farms and across the onshore wind sector. the communities which host them. This Government has committed through our localism proposals to giving communities more power to influence the development that takes place around them. We also want to see communities Charles Hendry MP rewarded for hosting renewable energy, which is why we have committed that business rates should be kept locally for renewable energy developments. The Localism Bill also ensures developers and local communities talk to each other much earlier so local needs can be factored in as proposals shape up and 3

The benefits from onshore wind in the first section of this publication, the the United Kingdom are two fold. industry has worked hard to ensure that Firstly, our abundant wind resource in a broader community benefit serves European terms is second to none. those living close to an onshore wind farm. Examples of existing community On an annual basis a in benefit funds are numerous and we have the UK returns on average 50% more showcased some in the second part of than the same wind turbine in this presentation. These funds receive Germany or 40% more than in Spain. a regular payment from the wind farm Yet both of these countries have more throughout its life, and as you will be able installed wind capacity and a larger share to see from the examples, are distributed of final electricity consumption coming by the local community to a series of from wind than the UK. Consequently, worthwhile projects. both countries have more people employed in the wind energy sector, The wind energy industry’s community and have built formidable manufacturing benefit Protocol was inspired by the industries around wind energy. success of community benefit funds thus far. Over the last year RenewableUK, Perhaps this is because until recently the as the UK’s leading renewable energy second benefit of having a healthy wind trade association, has conducted a energy sector was only partly understood. thorough-going consultation amongst However, it is now becoming clear our members on finding a way to that wind not only has the capability to formalise these contributions, and we provide a substantial proportion of our are now delighted to present the results nation’s green electricity, but it could in the third part of this document. be a significant driver of economic and Our members and the Board of employment growth. Our most recent RenewableUK has clearly endorsed this report on employment in the UK’s wind Protocol, showing yet again that as an energy sector has shown that in the last industry we see community involvement three years the number of people in this as the key to further deployment. industry has grown by a spectacular 91%, in line with a doubling of the contribution Clearly, community benefit schemes have of energy from wind to the national grid. so far proven to be hugely successful with local communities, and are now As an industry we have always felt that deemed to be essential by our members. while the carbon reduction benefits from On top of the economic and employment onshore wind farms are national and benefits from onshore wind, as well as even international, feeding, for instance, Government’s proposals to ring-fence into our European Union carbon wind farm business rates and make reduction targets, the local and regional them available directly to local councils, benefits of onshore wind farms need community benefits stand to be an to be more emphatically stated. With important contributor to the future success that in mind we are producing a long- of the UK’s onshore wind sector. We wish ranging study into the economic benefit to thank all our members, stakeholders of onshore wind, and the initial results and Ministers involved in making sure that clearly show that per each installed overall benefits of onshore wind are so megawatt (MW) around £1 million stays clearly understood. in the community at local and regional level during the lifetime of the project.

Moving beyond the business or economic Maria McCaffery benefit, illustrated in the case studies in Chief Executive, RenewableUK 4 5

CaseSection Studies Break Garrad Hassan??? UK Onshore Manufacturing

UK companies are involved with many aspects of the onshore wind supply chain. The case studies in this section highlight four UK companies involved in the construction and component manufacture of onshore wind farms, supporting existing and creating new jobs.

6

Jones Bros Civil Engineering UK

Jones Bros has bucked the recession with increased turnover from £38m in 2008/2009 to £46m in 2009/10 with 27% of this from renewables.

Jones Bros is a long established civil Jones Bros has gained substantial “We see onshore wind engineering company with over 40 years experience in undertaking balance of experience in heavy plant machinery. plant contacts for numerous onshore developments as The company has grown steadily over wind farms including the Cefn Croes major civil engineering the years and now directly employs over Wind farm which was the largest of projects providing 270 staff and operatives. The company its kind in 2005 and more recently in significant opportunity invests in its workforce and values the September 2010 completed balance of importance of providing opportunities to plant contract for Tullo Wind Farm, near to safeguard, if all employees to develop their job related Aberdeen. not increase, our knowledge and skills. This year, Jones workforce.” Bros has taken on six youngsters under Jones Bros can see the obvious the Foundation Modern Apprenticeship benefit through the generation of scheme through Construction Skills sustainable, green energy. With the right . Reflecting on this investment Government support Ruth Jones notes Ruth Jones says “investment in our work that “now is the time for the indigenous force is a high priority for us as we feel Welsh construction industry to realise it provides us with a highly committed, the significant investment opportunities skilled work force”. that these renewable projects can offer to the local economy”. In doing so they We carry out works all over the UK, from will provide a much needed economic Aberdeen to Plymouth, and having one boost to Wales and would help to secure of the largest heavy plant fleets in the UK the future employment and retain the this enables us to provide cost efficiency services of many local professional and and quality control; and as a result, we highly skilled construction staff and have built up relationships with good operatives. clients some lasting for over 30 years. 7

BGB Innovation

BGB started supplying the wind sector with bespoke slip ring and brush holder assemblies for rotary applications in 1994, and the transformation of the company in recent years has gone hand-in-hand with the development of the burgeoning industry.

Despite the recession in 2009, the manufactures its own tooling, produces “Despite the recession company made a conscious decision its own prototypes and then follows the to invest, swelling the workforce to process through to production.” 100 people and spending over £1m on in 2009, the company Holt adds that whilst the European upgrading buildings and plant. made a conscious market remains a priority, the company also exports to the US, China and India, decision to invest, Although growth has not yet returned to and is in discussions to build a facility in swelling the workforce the 30% mark enjoyed pre-recession, the States by the end of 2011. to 100 people...” David Holt, BGB’s Marketing and IT Director, is convinced the company is “The situation for supply into Europe now in a better position to capitalise on remains positive for many years to a growing wind energy market. come – the industry continues to show signs of development”, says Holt. “The “Our in-depth knowledge and challenge will be transferring our UK experience of the market was experience and knowledge to serve the the foundation of the investment local markets.” decision”, he says. “BGB designs and 8

Mabey Bridge

Just over a year on from the announcement that it was to build a £38m wind turbine tower manufacturing plant, engineering firm Mabey Bridge is poised to open the doors of the new factory near Chepstow.

Alex Smale, UK Director at Mabey Bridge, says Smale. “At full capacity we could “At full capacity we could says the company has finished most of employ upwards of 200 people at the the construction work and has begun tower factory.” employ upwards of 200 installing manufacturing equipment. people at the tower The company is currently in talks factory.” “We are about a month from finishing the with a number of other wind turbine development, which will give us capacity manufacturers and is confident that the to make up to 200 towers, and there’s successful manufacture of the first towers potential for further development on the at the plant will allow it to demonstrate the site to increase capacity further”, he effectiveness of its new facility to other explains. potential clients.

Production work has already begun However, Smale admits that the market at the site and the company will start remains highly competitive, with a number delivering towers in early April as part of of manufacturing plants in northern Europe its framework agreement with wind turbine experiencing overcapacity – a scenario firm REpower. he argues the Government could address by resolving the on-going planning and “We have about 60 people employed at financing challenges faced by many UK the new plant and recruitment is ongoing”, wind farm developers. 9

Converteam

Power conversion technology specialist Converteam is certain where its future lies. “There is no doubt that the wind industry will be at least half of our business in five years time, even with other parts of the business growing”, says John Hill, Renewables Manager at the firm. “It’s a huge opportunity for us.”

The company, which has traditionally Converteam components are built “Immediately adjacent to supplied heavy industrial sectors, into both onshore and offshore wind was recently selected by the Energy turbines. The onshore turbines are us in Rugby is the new Technologies Institute as one of two assembled abroad and then imported Warwickshire College firms to design a test rig capable of into the UK making the company part of and Power Academy, hosting 15MW turbine drive trains and is the UK onshore supply chain. with which we have set now eyeing up different parts of the wind energy supply chain. The company employs 350 people up a close relationship in the renewables sector, producing to our mutual benefit. Hill predicts that, with Converteam’s components such as permanent magnet Our market position electrical propulsion and dynamic generators. In a recent statement positioning systems already widely used the company has said: “Immediately is created from a by support boats for the North Sea oil adjacent to us in Rugby is the new century of activity at and gas industry, the company can Warwickshire College and Power the forefront of energy expect similar demand from offshore Academy, with which we have set up a conversion.” wind support vessels. close relationship to our mutual benefit. Our market position is created from Hill reveals that the company is also a century of activity at the forefront developing new drive train technology of energy conversion, but we seek for use in large 7.5MW-plus turbines, continuous improvement through which it hopes to commercialise by innovation, experience based learning 2017. He says the innovative high- and staff development. It is the skill of temperature superconducting system our workforce which makes us more will make power generation more competitive, more resilient to economic efficient whilst halving the size of the shocks, nimbler in a fast-moving sector turbine’s generator. The system would and more likely to attract and hold in turn allow turbine blades to increase customers. Our technical solutions the load on generators, consequently provide for the environmental and social increasing power outputs. needs of the moment. Converteam’s vision includes all the components of a sustainable growth.” 10 11

CaseSection Studies Break Case Studies Community Benefits

Community benefits schemes are a well established and integral part of onshore wind energy developments and representative of the positive relationship between a developer and the local community. The case studies in this section look at a number of communites that have benefited from this relationship. 12

Cefn Croes (, Wales)

Developer: 39 turbines (58.5MW) Commissioned March 2005

During the operating life of the Cefn Awel. Coed-y-Pobl Trust has been very table; re-seeding areas of heather to Croes wind farm, community benefits proactive in making use of the available help stabilise the land and re-establish have been provided in three different grants, and was awarded £3,750 in 2007 the heathland; and the revitalising of two ways: and a further £1,756 in 2008 for its work key species populations in the area: the in improving the community woodland. water vole and the otter. 1. The Cefn Croes Wind Farm Remediation measures in the upstream Community Trust was established in Other grants awarded include, £1,335 area of the site were completed in 2005. November 2005. It is a Charitable Trust to Eglwys Newydd Church in support These included the construction of dams funded by Cambrian Wind Energy (a of an Autumn Community Event; a total (on drains previously created for forestry Falck subsidiary), which contributes of £6,384 to Mynach Primary School purposes) to increase water retention £58,500 (increased annually with for purchasing computers and digital and expand the areas of bog. the RPI) annually into the Trust. The camera equipment, and developing a Trust is managed by a board of five recreation area for school activities; In May 2007 Falck Renewables trustees: four of the trustees represent a total of £10,530 to Ponterwyd commissioned consultants to install the communities of Pontarfynach and CM Chapel for the refurbishment of monitoring equipment (including 12 Blaenrheidol, whilst the fifth trustee the schoolroom and upgrading the piezometers) at the site and complete a represents Cambrian Wind Energy. graveyard; £3,490, Ponterwyd & District monitoring report and review of the mire The trustees consider applications for Art Club for the provision of tutors, restoration works. funding from members of the community training aids and equipment; and and decide how the funds should be £4,500 to Plynlimon Heritage Trust for allocated to those projects. restoration of the water wheel.

Priority is given to projects in 2. Cambrian Wind Energy also provides the Community Council Areas of support to The Red Kite Challenge, Blaenrheidol and Pontarfynach, and which takes place in June every year. then to the wider area of the County of It was first held as a trail race in the Ceredigion. The Trust supports any type hills of Ceredigion, Mid Wales, in mid- of activity that involves local people, summer 2003. The race follows paths through small community organisations, and tracks through forests, across that benefit their community. The moorlands and past lakes, with less activities must provide some measure of than a mile of tarmac surface, and also economic, environmental, educational, across access tracks created by the social or cultural benefit for people wind farm. This is a good example of living in the area. Projects awarded an additional benefit from the wind farm grants in 2010 include, amongst others, development available to the community Ponterwyd and District Art Club, aids enjoyment of the environment. Eglwys Newydd Church Hafod, Ystwyth Community Transport and Ponterwyd 3. Finally, Cambrian Wind Energy Country Fête. contributes £10,000 each year for the restoration of the site’s ecology, Projects receiving grants vary which had been degraded over many significantly, from churches, to years through commercial forestry and schools, play groups, and communal intensive agriculture at the site, prior community areas. For example, in 2007, to the wind farm’s construction. Work Blaenrheidol Community Council was in the area is on-going, with activities awarded £15,000 to purchase new including: re-wetting of the bog habitat equipment for the play area at Maes yr of most of the site by raising the water 13

Burton Wold (Burton Latimer, Northamptonshire)

Developer: Your Energy 10 turbines (20MW) Commissioned March 2006

Through close consultation with the local community it was agreed that a community benefits scheme to support greater energy efficiency and options for smaller-scale renewable energy projects be developed. A community fund was therefore established to support such projects, as well as supporting education initiatives related to renewables and energy efficiency. The community received a lump sum of £40,000 upon construction of the wind farm, and receives £10,000 every year over the life of the project.

Over the last four years the community fund has enabled: Image courtesy of Kettering Borough Council.

• The installation of solar panels at Health Centre, Burton Latimer now Yeomans Court Sheltered Housing reopened as a full community use scheme in Burton Latimer, providing centre with community meeting zero-carbon hot water to all rooms and facilities. communal areas and an estimated • Installation of a solar PV system at saving of 25% on annual energy a resident’s property in Park Road bills. Burton Latimer. • The installation of sun tubes at St. • Over 400 children from local primary Mary’s School, providing natural schools and over 1,000 people to lighting to enclosed areas and a visit the wind farm to learn about high-efficiency heating and hot how wind energy works. water system for a local Girl Guides’ building. The fund is open to residents and • The installation of energy-efficient community groups to apply for grants heating and improved glazing and interest-free loans to make energy to Burton Latimer Guide Centre, efficiency improvements to their homes replacing old ceiling-mounted or premises, or for the promotion of electric radiant bar heating systems. energy efficiency education. To date, • The purchase of children’s books sixteen local residents are exploring for the local library and funding for opportunities for installing energy a community information point for efficiency measures and renewables residents and visitors to learn about in their homes, with one resident the wind farm and energy efficiency. already benefiting from the successful • The installation of improved installation of a solar PV systems on energy- efficient glazing to the old their property. 14

Vectis Wind Farm (Isle of Wight)

Developer: Infinergy 5 turbines (11.5MW) Planning submission expected Autumn 2011

Wind farm developer Infinergy and Green unit rate, plus an annual £100 renewable electricity supplier Green rebate from LEO for up to 25 years; Energy UK have joined forces and set up LEO, the Local Energy Organisation. Gale – for the wider community This not-for-profit organisation will allow surrounding the wind farm, a 10% households surrounding the proposed discount on Green Energy UK’s Deep wind farm to benefit directly by offering Green unit rate will be provided; and them green electricity at a reduced rate. From Infinergy’s past community Breeze – for all other identified consultation experiences LEO stands households: they can join LEO and out as a solution to the wishes of local receive a one-off benefit on switching to residents who would like to be directly Green Energy UK. involved in the production and revenue of “their” wind farm. In total, Infinergy will voluntarily provide £23,000 per annum every year for 25 The idea is that residents of the local years into LEO and its fund. The fund community can sign up as members of will be distributed in two ways. Firstly, LEO and switch to the “Deep Green” Storm members will each receive their tariff provided by Green Energy UK. By £100 rebate for their electricity bills. doing so, each household is eligible for Secondly a total of £52,500 over the 25 a variety of benefits depending on their year lifetime of the wind farm (plus any proximity to the wind farm. Classified as monies from Storm eligible households “Storm”, “Gale” and “Breeze”, the three who do not become members of LEO) levels of membership are: will be placed in the wider community benefit pot. Local members of the public Storm – eligible to those households will constitute LEO’s board of trustees directly neighbouring the wind farm: and decide how the wider community these residents will be offered a 10% funds are to be distributed. discount on Green Energy UK’s Deep 15

Farr Wind Farm (Near Inverness)

Developer: RWE npower renewables 40 turbines (92MW) Commissioned May 2006

This project enabled a community benefit fund to be set up to assist local community projects in the areas of Strathnairn and Strathdearn. The fund is administered by Strathnairn Community Benefit Fund Ltd and Strathdearn Community Charitable Trust. Both of these bodies were set up by members of the local community, thus ensuring that decisions about how the fund is allocated are made by local representatives for the benefit of their own community.

In 2009 the Strathnairn Community Benefit Fund Ltd made 56 grants Image courtesy of RWE Npower Renewables Ltd. totalling £86,070 across a range of different grant types including: Project Case Study: • Venture Grants of up to £250 for with showers, toilets and changing educational or training projects. Strathnairn Community Benefit Fund Ltd areas. In addition, the pitches are now • Further Education and Training has worked hard to maximise the benefit eligible to hold important league finals, Grants of £250 for students leaving to its community. Boleskine Camanachd and other members of the community school and going on to further (Shinty Club), the Mid-Lairgs Football can now enjoy undisturbed use of the education or training. Club and a local soccer club have all hall. • Renewables Grants of up to £1,000 benefited from one of the projects the of the cost of installing small-scale fund has chosen to support – a brand- David Henderson, a member of the Farr renewable technologies. new changing facility that has been Hall Management Committee, said, • Home Heating Grants of up to £250. constructed adjacent to Farr Hall. “We are delighted with the substantial • Donations of £250 for local groups contribution from the Strathnairn or organisations planning events A £70,000 donation from the Strathnairn Community Benefit Fund”. “The finished open to the public. Community Benefit Fund Ltd helped to secure over £110,000 of match changing facilities will greatly benefit everyone using the hall. We have also In 2009 the Strathdearn Charitable funding to make the project possible. been able to invest in an air-source Trust made 13 grants totalling £21,550 Additional funding applications to heat pump system, which is the primary including: Highland 2007, HIE, sportscotland and source of heating and hot water for • £2,328 to pay for design work on the Highland Energy Company were also the facilities greatly reducing our CO2 a proposed Strathdearn Sports all successful. emissions.” Facility, which will benefit from a further donation of at least £40,000 Teams playing on the shinty and football The annual fund started at a base level from the fund in 2010. pitches used to get changed inside the of over £100,000, is index linked in • £700 to provide a Christmas lunch hall, which was unsatisfactory for the line with inflation and will be available for senior citizens in the local area players, the hall management and other throughout the operational life of the (Tomatin WRI). hall users, as it was never designed for this kind of use. The new changing wind farm. In addition a one off lump • £480 to help to cover the costs sum of £1 million was provided on of four young people undertaking facility now allows players of all ages to change in comfort. The new facility completion of construction of the wind a Duke of Edinburgh’s Awards farm. Expedition. comprises separate areas for two teams 16

Earlsburn (Stirling)

Developer: Falck Renewables 15 turbines (37.5MW) Commissioned December 2007

As part of this project, a community FREE set up the Fintry Development prize of a wind-up radio. ownership scheme was established with Trust to manage the revenue received This approach demonstrates a more Fintry Renewable Energy Enterprise from the operation of the turbine with holistic view to a community wind energy (FREE) that allowed the village of the aim of reducing the carbon footprint development, with benefits extending Fintry to explore a different approach of the village as a whole. The Trust beyond simply the financial. The turbine to community benefits. Rather than has received income of approximately is symbolic of the commitment and receiving the “usual” form of community £230,000 from the first three years of the enthusiasm of the local community to benefits in the shape of annual operation of the turbine. changing its energy use. payments, they viewed the nearby Between September 2008 and January development as an opportunity that, with 2009, 58% of surveyed households Community benefit: the right approach, could bring benefits benefited from the free insulation to all members of the community, with measures on offer. Those receiving In addition to the benefits received by the potential to have a wider influence cavity-wall and/or loft insulation will the Fintry community, Falck Renewables on energy-use behaviour and attitudes, save, on average, £600 on their annual also provides £35,000 (increased both within the village and beyond. fuel bills. This represents a total annually with the RPI) each year to increase in annual disposable income the Earlsburn Wind Farm Community The village of Fintry put forward their for the community of £91,352. If energy Benefit Fund. This fund is managed own proposal for ownership of an savings from behavioural changes by the Scottish Community Foundation additional turbine, requesting that are included, the increase in annual and is open to applicants from Denny ownership was not only available disposable income for the community & District, Carron Valley & District and to those that could afford to invest is calculated to be £180,000. This Cambusbarron community council but to all people in the village. The improvement in energy efficiency of areas. The fund provides grants to Fintry proposal was for an additional households significantly reduces the charitable activities that enhance quality ‘community’ turbine at the site (bringing number of households in fuel poverty in of life for local residents, contribute the total to 15) to be uniquely “owned” the Fintry area. to vibrant, healthy, successful and by the village, with the revenue it sustainable communities, generated going into a community Events such as community open days and/or promote community spirit and fund. With Renewable Development at the site and visits by the village encourage community activity. Company’s support, the proposal was primary school are also helping to successful and planning permission encourage this commitment across Examples of projects that have been for an additional turbine was secured. multiple generations. To promote energy funded by the Fund include contributions An innovative financial package was efficiency with the young people in the towards a school “Vegetable Patch created by Falck Renewables, whereby community, the Energy Agency provided Project” and an “Artspace” project which the Fintry community would be able to a lesson on energy for the Primary 7 helps people experiencing or recovering enjoy the full benefits of an income from pupils of Fintry Primary School. A poster from mental health problems. the additional turbine without having to competition produced a logo designed pay for it. by Gemma McDade, who received the 17

Harlock Hill Westmill Wind and Haverigg II Farm Co-op (Cumbria) (Oxfordshire)

Developer: Baywind Energy Co-op Developer: Energy4All Ltd Harlock Hill (5 turbines, 2.5MW) 5 turbines (6.5MW) Commissioned January 1997 Commissioned March 2007

Haverigg II (1 turbine, 600KW) Based on the Baywind model, Westmill Commissioned July 1998 Wind Farm is the first 100% community- owned onshore wind development in the Baywind Energy Co-operative Ltd is South East region. Although a long time the UK’s first community-owned wind in the process, the landowner Adam energy project formed in 1996 and Twine finally gained planning permission to date has enabled 1,300 people to for five 1.3MW machines in July 2005. invest in two projects in Cumbria. With This £8 million, 6.5MW project started a share holding range between £300 construction in autumn 2006 and and £20,000, the stake in the co-op is became operational by March 2007. A within easy reach of almost everyone. public share offer was launched during Through the co-op model each member 2006 successfully raising £4.6 million has one vote regardless of his or her and, supplemented with a loan through shareholding, and profit from the wind the Co-operative Bank, the project came farm operation is paid to all members to fruition. Shares in the wind farm were annually. In total, it has successfully available to anyone with a minimum raised £2 million through its share offers investment of £250 and a maximum of and has made share interest payments £20,000. Westmill Co-op currently has to its 1,300 members averaging 7% 2,300 members and produces enough gross per annum since it launched. green electricity to power around 2,500 homes every year. In addition to providing payments to its investors Baywind also set up the Similarly to Baywind, Westmill set Baywind Energy Conservation Trust to up the Westmill Sustainable Energy ensure the whole community, not just Trust as a charity with initial funding of shareholders, can benefit from hosting £1,000. Each year 0.5% of the income Image courtesy of Westmill Wind Farm Co-op. the Harlock Hill wind farm. Baywind of the Westmill Wind Farm is provided donates 0.5% of annual income to the to the fund with the objective is to trust with the aim of promoting energy encourage and promote the deployment efficiency through advice and education of sustainable energy within the local initiatives, and funding of energy vicinity of the wind farm. Over the last efficient products and grants, such as year it has generated £6,000 and is Pennington School receiving £3,000 this looking for match funding to increase year to help install PV panels to reduce this for wider benefit. its carbon footprint.

Due to increasing demand for community involvement in renewable energy schemes Baywind established Energy4All, a not-for profit organisation, in 2002 to identify and develop further opportunities for co-operative community ownership of renewable technologies. To date it has created six wind farm co-ops. 18 19

Community Benefits Protocol

In direct recognition of local communities’ commitment to accommodating onshore wind farms we, as an industry, are committed to ensuring that a proportion of the benefits delivered by these projects are realised within the communities that live near them. 20

Our Community Commitment

This Protocol has been developed by RenewableUK in consultation with central and local government and wider stakeholders including independent community representatives.

Introduction

Onshore wind farms generate clean, green energy. They deliver real and tangible emissions reductions, “NALC is the national representative body for provide energy security of supply and 9,000 local (parish and town) councils throughout socioeconomic benefits to the local and national economy. These benefits can be England and we firmly believe that for community local to the project, but are more often empowerment and localism to become a tangible enjoyed across a much wider area. reality then the views and opinions of local people Therefore, in direct recognition of must be heard and acted upon accordingly. The local communities’ commitment to accommodating onshore wind farms we, Community Benefits Protocol is a right step in as an industry, are committed to ensuring this direction where it gives a framework for that a proportion of the benefits delivered local planning authorities, local councils and by these projects are realised within the communities that live near them. communities to openly discuss with potential developers the benefits for people of having This Protocol sets out the commitment by RenewableUK’s members to deliver renewable energy sites in their area.” real and tangible benefits to those communities that live near onshore wind farms of 5MW and above (installed John Findlay, Chief Executive of the National Association of Local Councils (NALC) capacity).

This Protocol applies only to projects in England submitted to planning on where an operator may provide for a Most developers already provide a or after three months from the date of community facility or local environmental range of community benefits that help publication of this Protocol. improvements; facilitation of profit- to bridge the gap between a project’s sharing or a proportion of ownership by wider contributions and the delivery Communities in England can benefit in a a community of a project; or any other of benefits at the local level. To date variety of different ways when onshore schemes or approaches identified and these have been an optional contribution wind farms are developed in their areas. agreed between an operator and the by a developer and a reflection of Benefits can include local contracting local community. the positive relationship between the and associated employment benefits, developer and the community during and/or, for example, skills training, This Protocol fully recognises that the lifetime of the project. As such, opportunities for educational visits communities come in all shapes and community benefits have become a and raising the awareness of climate sizes, and contends that therefore so well-established and integral part of change. This Protocol refers specifically should community benefit schemes. onshore wind farms in England, and to what are more commonly known This Protocol does not provide a RenewableUK can provide numerous as “traditional” community benefits, prescriptive list of delivery models or an examples of existing good practice. This i.e. those benefits that are focused exhaustive description of community Protocol signifies an important step in directly upon, and are clearly tangible development schemes, but rather formalising this process and establishes to, the local community living near a a fully flexible framework by which the RenewableUK Community Benefits wind farm. They may include, but are communities can be more closely Certificate to ensure a more transparent not in any way limited to, a community engaged with, and have a greater say in, and consistent approach to the value fund, which receives either a lump sum the opportunities available to them. delivered by onshore wind farms. or regular payments; benefits in kind, 21

This Protocol sets out the criteria with inconsistent, approach to the provision which all participating RenewableUK of community benefit schemes. This members agree to comply. Although Protocol presents a significant step not a legally binding contract, non- forward by bringing together the greatest compliance would lead to the public strengths of existing best practice into revocation, where appropriate, of the a formalised and coherent approach, Community Benefits Certificate. It which will enable communities to sets out a minimum value of benefit to understand more easily the potential be provided, the means by which the benefits of having onshore wind farms community(ies) with an interest in the built in their areas, how community wind farm is/are identified and the period benefit schemes will be established, and of provision of community benefits. In how and when the community benefits doing so, it establishes a formalised, will be provided. clear and transparent framework within which project applicants, Local Planning The industry fully appreciates that Authorities (LPAs) and communities can communities come in all different openly discuss the potential benefits shapes and sizes, and believes that, from having wind farms developed in correspondingly, so should community their areas. benefit schemes. Therefore, in order to develop a formalised process whilst maintaining full flexibility in the type of benefits and the mechanism for

Scope their delivery, this Protocol presents a number of criteria within which the RenewableUK members commit to applicant, through engagement with all early and open dialogue with local stakeholders, can tailor a community communities around proposed wind farm benefit scheme most appropriately to projects, so that local residents and the a community’s particular needs and wider community are informed regarding aspirations; a community benefit the development of the proposals and scheme may include financial have an opportunity to comment on, and payments and /or benefits in kind and participate in, their development. profit sharing or community ownership. The industry recognises that the development of a successful community benefit scheme is achieved through clear and open dialogue between the project applicant and the community. This approach enables the development of a fair, reasonable and meaningful level of benefit, sensitive to both the needs of the local community and the commercial realities of the project. This approach has been developed and applied over a number of years, resulting in the establishment of a flexible, yet 22

Protocol criteria

The following criteria present the • The applicant commits to framework for a formalised yet flexible undertaking early and transparent approach, providing certainty to community consultation in line with, “As the membership communities that live near onshore wind as a minimum, the relevant LPA’s body for the UK-wide farms. These criteria have been agreed or Major Infrastructure Planning by all participating onshore RenewableUK Unit’s requirements for community network of community members and apply to all projects of 5MW consultation (as appropriate). foundations, and above in England. • Payments and/or benefits in kind Community Foundation under a community benefit scheme • A community benefit scheme will will commence not later than twelve Network’s (CFN) vision receive support equivalent to a months from the date of completion is to see members minimum value of at least £1,000 per of commissioning of the wind farm megawatt1 of installed capacity per (unless otherwise agreed by the in aggregate and annum and will be index-linked with applicant to be paid earlier) and individually providing the RPI for the lifetime of the project. shall be provided on or before each • The community(ies) with an interest anniversary date of the first payment a unique channel for in the wind farm will be identified (or equivalent). donors of all kinds through a process of engagement • Payments and/or benefits in kind involving the applicant, the LPA and shall be provided for the duration to engage with their relevant stakeholders as defined of the commercial operation of the communities and each in any Statement of Community wind farm. Annual payments may Involvement, Statement of be wholly or partially aggregated other on a lasting Community Consultation, or similar over the permitted operational life, basis. CFN shares requirement submitted by the as agreed through consultation with project applicant. the applicant and the community. the vision of the community benefits protocol as an enabler for local voluntary and community groups to benefit from any funds that flow as a result of the implementation of a framework for key stakeholders in local communities to debate the issues of renewable energy.”

Stephen Hammersley, Chief Executive of the Community Foundation Network

1. An applicant may also express the value of support in megawatt hours equivalent. 23

Auditing

Statement of Community Benefit Project commissioning

At the time of submission of a planning The operator shall, within six months of The Audit Forms from each operator will application, or in advance if desired, its occurrence, notify RenewableUK in be submitted to RenewableUK and used the applicant will sign and submit to writing of the first export of electricity by RenewableUK to document the level the Local Authority a “Statement of from the project (“commencement of of community benefit provided by the Community Benefit” setting out their operation”). Payments and/or benefits operator and to ensure their compliance commitment to provide benefits in in kind provided under a community with this Protocol. accordance with the criteria identified benefit scheme will commence not above, should the application be later than twelve months from the date Audit Body consented. This will ensure an open of completion of commissioning of the and transparent understanding of the wind farm and will be provided on or In order to ensure the wind farm operator minimum level of benefits that will before each anniversary date of the first provides community benefits in line accompany the project. The overall level payment (or equivalent). The operator with this Protocol, an “Audit Body” of of benefit shall be no less than that set shall then submit annually an Audit Form a majority of RenewableUK members out in this Protocol. to RenewableUK for each year of the and third-party representatives will operation of the wind farm. The “Audit be established. The Audit Body will Registration and Audit Forms Form” will detail the level of benefits be independently chaired and will be provided to date and also the proposed established by means of a lottery system Project Consent level of future benefits. The Audit Form for both members and third-party be submitted within one month of representatives. Each elected Audit In order to maintain clear evidence the anniversary of commencement of Body will operate for a period of two of the applicant’s commitment to operation. years. providing community benefits in line with this Protocol the applicant will, RenewableUK members commit to The Audit Body will convene once each within six months of receipt of planning providing payments and/or benefits in year to review a random, representative permission, complete and submit a kind for the duration of the commercial sample of all Audit Forms submitted “Registration Form” to RenewableUK. operation of the wind farm. This to RenewableUK during the previous This will identify the proposed future Protocol provides the flexibility for cases calendar year and assess whether or community benefit to be provided to where it has been agreed, for example, not the Audit Forms received are in the communities accommodating the for a community to receive a lump sum accordance with this Protocol. wind farm upon commercial operation payment up front. In this case the wind of the project. This Registration farm operator may aggregate annual Form will be used by RenewableUK payments, wholly or partially, into one to record and verify an applicant’s or more lump sum payments. These continued commitment to engaging payments would be calculated based on with local communities and to providing the permitted operational life of the wind community benefits in line with the farm. criteria identified above2.

In the event that a project is subsequently not taken forward into construction, a community benefit will not be provided by the applicant.

2. It is recognised by RenewableUK that through the planning application process for a wind farm there can be changes in scope and / or other conditions which influence the economics of a project. Therefore, upon receipt of planning consent a developer may revise their community benefit commitment. Based on the principle of fairness this would change upwards or downwards in line with the changes in a project’s scope and / or other conditions. The revised benefit shall not be less than that as agreed by this Protocol, i.e. equivalent to a minimum value of £1,000 per megawatt. 24

Regulation

Certification Conditions

RenewableUK has established the This Protocol applies to all participating “As the country’s “Community Benefits Certificate”. The onshore wind farms of 5MW and above leading network of Certificate will be awarded at both a installed capacity in England submitted project and operator level. All qualifying into planning on or after three months development trusts, wind farms adhering to this Protocol and from the date of publication of this settlements, social providing timely submission of Audit Protocol. This Protocol does not apply Forms will be publicly recognised by the retrospectively to projects submitted action centres and award of the RenewableUK Community into planning prior to this date. This community enterprise Benefits Certificate, and receive Protocol does not apply to wind commendation in an annual report on farms of less than 5MW although the practitioners, community benefits to be published operators of these projects will be able Locality welcomes each year by RenewableUK. to submit Audit Forms for their projects and by doing so will receive special the Community An operator will be eligible for the commendation in the annual report on Commitment protocol Operator Certificate provided that all community benefits. of their qualifying wind farms have also developed by received the Project Level Certificate. Review RenewableUK. Local

Non-compliance This Protocol, including the minimum communities need to value of community benefit to be have a stake in onshore Any operator who fails to submit an provided in connection with each wind developments Audit Form within the timeframe as qualifying wind farm, will be kept under identified above or to provide community regular review to ensure that it reflects and we hope this will benefits in line with the criteria identified best practice and market conditions. It be a model that others in this Protocol will be requested by will be reviewed at least once per year RenewableUK to remedy the omission(s) and revised at least once every five will take up in the within a three month period and provide years. future. Locality will be evidence to this effect. Failure to remedy their action within this three there to help wherever month period, or to provide just reason, we can.” will result in the revocation of both the Project and Operator Certificates. An operator will have the right to appeal to Steve Wyler, Chief Executive the RenewableUK Board, who will be Designate of Locality obliged to determine and communicate their decision within three months. The decision of the RenewableUK Board of Directors will be final.

RenewableUK Greencoat House, Francis Street London SW1P 1DH, United Kingdom

Tel: +44 (0)20 7901 3000 Fax: +44 (0)20 7901 3001

Web: www.renewable-uk.com Email: [email protected]