The British government has launched a new initiative that gives local communities the right to participate in new energy developments, for the first time.
Launched on Thursday by the Secretary of State for Energy, Ed Davey, the arrangement will require developers of new renewable energy schemes to offer a stake in the project to local community groups, should they want it.
Developers have agreed to the arrangement on a voluntary basis, but the government has reserved the right to legislate to make it mandatory if there is insufficient uptake under the voluntary scheme.
Community Energy England, a group that was launched in June to represent the sector, has welcomed the announcement and the engagement by progressive developers.
“We are delighted to see major renewable energy companies recognising this as an opportunity,” said CEE chairman Philip Wolfe. “If everyone embraces this new approach, it can bring huge benefits, not just to communities but to the developers as well.”
“Ed Davey’s initiative today will help local enterprises take responsibility for their energy production and usage, and accelerate the roll-out of renewable power stations owned and operated by communities rather than faceless corporate multi-nationals.”
Davey has been vocal in his support of community energy, and the role it will play in the UK’s energy future.
“Community energy is revolutionising renewable energy development in the UK, and shared ownership will offer people the opportunity to buy in to the green energy that their own communities are producing,” he said recently.
Last week, his government endorsed another scheme, in which locals could be offered the chance to buy shares in new wind farms, solar farms and hydro power stations for as little as £5.
And like this week’s newly launched initiative, it also aims to reduce local opposition to renewable energy development – and particularly wind farms.
“At a time when people feel ever more alienated from their traditional energy suppliers”, says CEE’s Wolfe, “local energy is accepted as the way of putting communities back in charge.”
Indeed, despite survey results showing more than 70 per cent of people in the UK like wind farms, this has not necessarily been the reflected in the experiences of developers.
Last week, for example, a proposal for a wind turbine in a Gwynedd village in north-west Wales was refused planning permission by councillors, who said it would be an “alien feature” harming the landscape.
Plans of the installation of a 67 metre tall turbine had divided the community, with supporters claiming it could generate nearly £3 million profit over 20 years for a poor community.
At the other end of the spectrum, there is last month’s news that the ground-breaking Beinn Ghrideag Community Wind Farm, based in the Isle of Lewis, had received £11 million in funding from Santander Corporate & Commercial.
Due for completion in 2015, Beinn Ghrideag is set to be the UK’s largest 100 per cent community-owned wind farm. It was conceived by Point and Sandwick Power in 2005, with the aim of reinvesting 100 per cent of the farm’s profits into a variety of community projects over the next 25 years.
Based on a five-year business plan, Beinn Ghrideag Community Wind Farm will look initially support eight key community projects, including the insulation of 350 homes, the promotion of local crofting skills and renovation of local villages, finding employment for at least 100 young adults and funding for the local Bethesda Hospice.
The project is an important component of the Scottish Government’s community energy strategy, which is targeting 500MW of locally owned renewables by 2020. Grant funding also came from BIG Lottery.
The CEE, meanwhile, has launched a new website to help prospective partners make the most of this latest government endorsed community energy opportunity.
It lists benefits for developers including new sources of funding, increased local support for projects and enhanced prospects for planning consent.
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