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Socio-Economic and Tourism Impact Assessment: North Kyle Energy Project

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Socio-Economic and Tourism Impact Assessment: North Kyle Energy Project North Kyle Energy Project Other Application Documents Socio-Economic and Tourism Impact Assessment September 2019 Socio-Economic and Tourism Impact Assessment: North Kyle Energy Project A report to North Kyle Wind Farm Ltd 24th September 2019 Contents 1. Executive Summary 1 2. Introduction 3 3. Socio-Economic Context 6 4. Socio-Economic Assessment 19 5. Wider Socio-Economic Effects 28 6. Tourism Context 35 7. Evidence on the Effect of Wind Farms on Tourism 42 8. Tourism Significance Assessment 45 Socio-Economic and Tourism Impact Assessment: North Kyle Energy Project 1. Executive Summary The proposed North Kyle Energy Project (proposed development) consists of 54 turbines with a combined capacity of approximately 226.8MW1 and is located approximately 6 km to the west of New Cumnock. The economy of the immediately surrounding area was formerly based on coal mining and textile manufacturing, which have since declined in importance. Partly as a result of declining employment opportunities, the area has a relatively old population, high unemployment and relatively high levels of deprivation. The economic impact of the proposed development has been assessed based on an analysis of the local economy and the experience of what has happened at other onshore wind farms, including case studies of other onshore wind developments in Scotland. The result of the economic analysis suggests that during the development and construction phase the proposed development is expected to contribute up to: • £18.7 million Gross Value Added (GVA) and 279 job years in East Ayrshire; and • £85.2 million GVA and 1,308 job years in Scotland. Development and construction impact of £18.7 million GVA and 279 job years in East Ayrshire During each year the operation and maintenance of the proposed development could contribute up to: • £1.9 million GVA and 26 jobs in East Ayrshire; and • £3.0 million GVA and 43 jobs in Scotland. Annual operational impact of £1.9 million GVA and 26 jobs in East Ayrshire A variety of measures were identified that could maximise the economic impacts associated with the proposed development. These include: early identification of potential suppliers using meet-the-supplier events and partnerships with East Ayrshire Council and Ayrshire Chamber of Commerce, giving requirements in plenty of time so that local suppliers are able to upskill; developing partnerships with local --------------- 1 For the purpose of this application, it is assumed that the 54 turbines will each have a capacity of 4.2 MW giving a total installed capacity of 226.8 MW. It is possible that turbines with a different capacity, giving a different total installed capacity, could be used if they are available at the time at which the wind farm is constructed Socio-Economic and Tourism Impact Assessment: North Kyle Energy Project 1 education providers, which may include Ayrshire College, to deliver industry training; and undertaking a post-construction audit of local content. MW-related boost funding at financial close of £7.56 million2, as well as Community Benefit funding of £28.35 million over 25 years Wider benefits associated with the proposed development include: • boost funding of a MW-related £7.56 million available from financial close (i.e. during the construction period), which exceeds best practice guidance; • community benefit fund of £1.134 million, indexed annually, for 25 years following commissioning of the proposed development, which can be used to support local projects and community initiatives; • a shared ownership opportunity; and • non-domestic rates estimated at £2.7 million per year, giving £68.2 million over the lifetime of the development supporting the delivery of local public services. Based on community action plans and the proposed North Kyle Forest Masterplan, potential uses for the community benefit funding were identified including developing assets for the tourism economy, such as accommodation and bike trails. Further uses could be to improve the appearance of local towns, for example by demolishing derelict buildings, and supporting measures to address fuel poverty. It is anticipated that a proportion of the boost funding be utilised to fund existing and proposed initiatives in the area, such as the North Kyle Forest Masterplan, and the Coalfield Communities Landscape Partnership. A review of the economic impact literature to date has found that there is limited evidence to suggest that there is a link between the development of wind farms and tourism. An analysis of visitor attractions, recreational routes and visitor accommodation suggests that there would likely be a largely negligible effect on the relatively small local tourism economy. --------------- 2 The boost funding amount would depend on final installed MW capacity of the Site, calculated at a rate of £33,333 per installed MW. For 226.8MW of installed capacity this would be £7.56 million. Socio-Economic and Tourism Impact Assessment: North Kyle Energy Project 2 2. Introduction This report sets out the findings of a socio-economic and tourism assessment of the proposed North Kyle Energy Project, undertaken by BiGGAR Economics. This assessment has been undertaken on behalf of North Kyle Wind Farm Ltd (the Applicant) on the basis of a 54 turbine wind farm, each turbine with an indicative capacity of 4.2MW, which indicates a total generating capacity of 226.8MW. It should be noted that the actual generation capacity (in MW) of the proposed development would be dependent on the turbine ultimately selected in a procurement process. This assessment has been prepared for submission as part of the s36 application for consent for the proposed development. This assessment does not form part of the EIAR, rather it provides information on the broad socio-economic and tourism effects anticipated to be associated with the construction and operation of the proposed development. 2.1 Approach 2.1.1 Socio-Economics The approach that has been used to undertake this assessment is similar to the approach that has been taken in several other socio-economic and tourism assessments of onshore wind developments. Before assessing potential socio-economic effects arising from construction or development, it is first necessary to place the proposed development in the context of the local economy. Therefore, a profile of the local and regional economy has been created using available statistics, as well as considering the aspirations of the local community based on available strategies. The economic impact of construction and operation was then assessed, using a methodology that has been developed by BiGGAR Economics specifically to estimate the economic effects of wind farm developments, which is now considered industry best practice. This is based on research undertaken by BiGGAR Economics on behalf of RenewableUK in 2012, that was subsequently updated in 2015, which was based on case studies of the local, regional and national economic effects of wind farms developed in the UK. The wider socio-economic effects of the proposed development were also considered, including the community benefit fund, the boost funding, a proposed shared ownership scheme and the contribution to non-domestic rates. The potential contribution to the community would be aligned to the aspirations of the community. Socio-Economic and Tourism Impact Assessment: North Kyle Energy Project 3 2.1.2 Tourism An overview of the tourism and recreation assets was also undertaken, which considered the importance of the tourism sector to the local economy and how individual assets contribute to attracting visitors to the area. Tourism attractions, accommodation and paths within the vicinity of the proposed development were identified. After reviewing the literature on the relationship between wind farms and tourism, the potential effect of the proposed development on these assets was then assessed. 2.1.3 Consultations As part of the consultation exercise undertaken to inform the Environmental Impact Assessment, the following consultation responses in relation to socio-economics and tourism were received (Table 2.1). Table 2.1 – Consultation Responses Organisation Response Addressed East Ayrshire Advises that potential positive and Socio-economic Council negative socio-economic impacts during effects are construction, operation and considered in decommissioning should be taken Section 4. account of. Asks that voluntary community benefits Wider socio- should not be included, although economic effects, proposals for shared ownership should including the North be. Kyle Forest Advises that potential positive and Masterplan, are negative impacts on the proposed North considered in Kyle Forest Masterplan and Coalfield Section 5. Communities Landscape Partnership should be considered. Strategies for long term public access to Effects on core core paths and rights of way should be paths and rights of considered. way are considered in Section 8.3. South Ayrshire Consideration to be given to Waterside The industrial rail Council and the industrial rail heritage centre it heritage is hosts as a tourism asset. discussed in Section 8.3. New Cumnock Asks that, given potentially significant Wider socio- Community funding from other wind farm economic effects, Council developments, the Applicant should including the North demonstrate where and on what projects Kyle Forest Socio-Economic and Tourism Impact Assessment: North Kyle Energy Project 4 the proposed community benefit would Masterplan, are be spent on. considered in The potential effect
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