In the Sector Deal developers have committed to engage with local communities about onshore wind projects at the earliest opportunity possible. This may be through letters/emails, or through reaching out to local community groups (such as community councils, village halls, sports clubs, faith groups, etc).
Developers who have signed up to the Onshore Wind Sector Deal have made the following commitments:
- To meet or exceed the Scottish Government’s Good Practice Principles for Community Benefits from Onshore Renewable Energy Developments and the Good Practice Principles for Shared Ownership from Onshore Renewable Energy Developments. These principles promote a package of community benefits of the value equivalent to £5,000 per installed megawatt per year, index linked for the operational lifetime of the project, whilst also recognising the need for flexibility in the packages offered to communities. For example, if the installed capacity of wind farm was 75 MWs (15 – 25 modern turbines) and the project developer offers the community a community benefit package of £5,000 per megawatt per year, this would provide a community benefits package equivalent to £375,000 per year. This amount will increase with the inflation measure cited within the community benefit agreement.
- Greater transparency in how the funds are spent, with community benefit package and shared ownership details updated annually on the Scottish Government’s register of community benefits and shared ownership.
- Offering a shared ownership opportunity, where a community organisation can invest in the projects to own part of the project, or a share in the revenue.
- Engaging with communities at the earliest possible opportunity to agree a community package (which could include community benefits and a shared ownership offer) that meets or exceeds the Scottish Government’s Good Practice Principles (see above).
- Providing an in-principle community benefit agreement prior to the developer’s decision to progress the project, described as the Financial Investment Decision (FID).
- Maintaining any community benefit agreement or shared ownership agreements or offer as a condition of sale, if the developer sells or transfers the project to another company. In the case of a project sale, it’s important for community benefit recipients and developers to understand the agreements¹ between them so it can be transferred to the new owner.
- Working with communities to support more ambitious and strategic projects. Projects that contribute to a just transition to net zero are likely to be priorities where they match the needs of communities.
- Look for opportunities to take a co-ordinated approach to community benefit funds, for example where there are overlaps in the area of benefit from multiple projects in one area, as this can increase impact and reduce the administrative burden on local people.
- Working with key stakeholder organisations during pre-planning application to highlight community shared ownership opportunities. Ensuring that community organisations have sufficient time to explore these opportunities, which are more complex and are additional to any local community benefits.
Local Energy Scotland will maintain the register of community benefits and shared ownership, along with a community benefit toolkit. Advice and funding is available to help explore shared ownership opportunities.
¹ Agreements include legal agreements like memorandum of understandings, heads of terms, community benefit agreements, shared ownership offer and also agreements of intent, for example commitments made in planning submissions or offered and minuted at community meetings.