Contents 1. Executive Summary .................................................................................................. 1 2. Introduction ............................................................................................................. 2 3. Background .............................................................................................................. 3 4. Why Worcestershire? ............................................................................................... 5 5. Policy context .......................................................................................................... 7 6. Supporting the green economy ............................................................................... 10 6.1 Job creation .............................................................................................................. 10 6.2 Expertise in manufacturing and research and development ................................ 11 6.3 Increased energy security and reliability of supply ............................................... 11 6.4 Income for individuals, communities, and councils, not just for 'big business' 12 6.5 Reduced fuel poverty ................................................................................................ 14 6.6 Putting Worcestershire's green economy on the map .......................................... 15 6.7 Increased income for landowners ........................................................................... 16 6.8 Farm diversification/revitalisation of rural economies. ......................................... 17 7 Environmental benefits .......................................................................................... 19 7.1 Reducing carbon emissions ..................................................................................... 19 7.2 Creating new environments ..................................................................................... 20 7.3 Managing existing environments ............................................................................. 20 7.4 Reducing flooding and/or flood risk ........................................................................ 21 7.5 Air quality improvements ......................................................................................... 21 8 Social benefits ........................................................................................................ 22 8.1 Community pride ....................................................................................................... 22 8.2 Expansion of community capacity .......................................................................... 22 8.3 Ground rent and community funding ...................................................................... 22 8.4 Improved viability of community assets (e.g. village halls) .................................. 22 8.5 Educational opportunities ........................................................................................ 23 8.6 Longer-term health and quality of life benefits ...................................................... 23 9 Tackling the barriers ............................................................................................... 24 9.1 Lack of capacity in the local distribution network ................................................. 24 9.2 Lack of evidence ........................................................................................................ 25 9.3 Lack of clear criteria .................................................................................................. 25 9.4 Lack of familiarity with renewables ......................................................................... 26 9.5 Community concerns ................................................................................................ 26 Worcestershire County Council Renewable Energy Research Paper 1. Executive Summary 1.1. Renewable energy of the right scale and in the right location offers multiple benefits to Worcestershire's businesses and communities. It can provide: More jobs Reduced energy bills Sustainable income streams Increased energy security Resilience to uncertain energy prices 1.2. This research paper sets out the valuable contribution that renewable energy can make to Worcestershire's green economy, and explores the social and environmental benefits of increasing provision. It identifies the challenges that can slow the growth of renewables, and explores possible ways of overcoming these whilst ensuring our communities' views are heard. 1.3. Policy and financial support at national and local levels are driving the growth in renewable energy, and this paper recognises the need for strong frameworks to be in place if Worcestershire is to play its part in meeting the global energy challenge. 1.4. Renewable energy is just one component of an energy hierarchy that. If this hierarchy is put into practice, Worcestershire's contribution to climate change can be reduced and our homes and businesses can be better protected from rising energy prices and uncertain security of supply. www.worcestershire.gov.uk/renewables Page 1 Worcestershire County Council Renewable Energy Research Paper 2. Introduction "Businesses generating their own energy can create new revenue streams, reduce exposure to price uncertainty, benefit from government incentives and help ensure long-term revenue structures." 1 2.1. Renewable energy is expected to continue to be "the fastest growing class of energy"2 and could help Worcestershire realise its aspirations to become a leading green economy. From the County Council to individual householders, Worcestershire's renewable energy resources are already helping to drive down bills, increase income, and support local employment. 2.2. Alongside environmental gains, renewables can lead to increased energy security, cost savings, investment opportunities, job creation, and business diversification. 2.3. Worcestershire is dependent on centralised power generation to meet its electricity needs, but as older plant closes down, there is an increasing need for additional supplies. The National Grid3 recognises that "electricity margins are tighter than they have been for a number of years". The need for more energy from more sources is urgent, and an increase in distributed generation must be part of a package of measures to increase our energy security. Appropriate dispersed generation can help to stabilise the balance between supply and demand. 2.4. This research paper identifies the benefits of renewable energy in Worcestershire, as well as some of the potential risks. It provides guidance for all those involved in the planning and delivery of renewable energy at the larger than domestic scale, and may also be of interest to communities and individuals seeking to develop their own projects, respond to the plans of others, or simply find out what renewables development could mean for their local area. It is non-statutory and is not part of any Development Plan. As with other relevant issues, it may be a material consideration in planning decisions, depending on circumstances. 2.5. Renewable energy - as with other types of development - can be controversial; people have legitimate concerns over development scale and detrimental impacts on their environment, health and amenity. But most renewable energy projects have both positive and negative impacts, and this research paper considers how appropriate renewable energy development can be encouraged, whilst recognising that planning decisions must take all relevant issues into account. It provides guidance to inform policy/decision-makers, focused on the planning system. 1 Edie newsroom (22 January 2013) Businesses to profit from growing renewable generation market 2 BP (January 2014) Energy Outlook 2035 3 National Grid (October 2014) Winter Outlook 2014/15 www.worcestershire.gov.uk/renewables Page 2 Worcestershire County Council Renewable Energy Research Paper 3. Background 3.1. Worcestershire generates relatively small amounts of renewable heat and electricity. By relying on fossil fuels from outside the county, the local economy misses out on the jobs and revenues that can come from generating and supplying energy. Conventional large-scale generation and transmission can provide economies of scale, but can be wasteful, and greatest efficiency is often achieved through harnessing local resources for local use. Infrastructure required for both conventional and renewable generation will have impacts on surrounding areas. 3.2. Used wisely, Worcestershire's assets can not only make money for the county, but can also support our thriving environment and communities. With careful planning, we can begin to realise the benefits of local energy, using resources intelligently and saving us money. This means energy generation closer to where it's needed and infrastructure sized, located and designed to match users' needs. 3.3. Some renewables projects are philanthropic or environmentally-driven, but the main objective for most is an attractive financial return. Reduced expenditure on energy, together with the income from energy production, are obvious incentives, but the full range of financial benefits extends to direct, indirect and induced multipliers in the local economy (discussed further in Section 6). Scope 3.4. This research paper considers the impacts of decentralised and 'larger-scale' renewable energy (referring here to any scheme more than merely domestic in nature). Larger-scale projects