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 energy 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 Wind Farm 14 Farr Wind Farm 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 wind turbine in benefit funds are numerous and we have the UK returns on average 50% more showcased some in the second part of electricity 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 Wales. 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.