1.1 This guidance note is intended to accompany the template Memorandum of Understanding (“MoU”) prepared for use by communities and developers, looking to engage in early-stage discussions around community benefit arrangements. It is expected that the MoU would be agreed between the developer and community groups either at the consultation stage before a planning application is submitted or, after the planning application has been submitted and the developer awaits a decision. If the project is consented (ie received planning permission), the developer and community groups would most likely, enter into a more formal community benefit agreement at that time.
1.2 Community benefits are voluntary packages of benefits (often in the form of funds and usually paid annually) that renewable energy businesses provide to communities. They offer an opportunity for a renewable energy business to have a long-term relationship with a community.
1.3 The Scottish Government, in its vision for the future energy system in Scotland, sets the expectation that commercial energy developers should continue to offer meaningful community benefits in line with its Good Practice Principles (Supporting documents – Community benefits from onshore renewable energy developments – gov.scot (www.gov.scot)). These principles recommend that community benefit packages for onshore wind developments should have a value to the equivalent of at least £5,000 per installed megawatt per annum and be index-linked for the operational lifetime of the project. In addition, they also suggest that other onshore technologies should aspire to this level.
1.4 The process of discussing community benefit arrangements through to having a formal, legally binding agreement in place, under which the community will receive community benefit funds can take some time. Ahead of entering into the formal, legally binding agreement, the community and developer may wish to enter into an MoU as a ‘statement of intent’ as regards a future community benefit arrangement.
