The government has announced proposals to provide funding to coastal communities that host clean energy infrastructure, as part of its ‘Plan for Change’ initiative.
Under the proposals, energy developers would be required to contribute to community benefit funds which would support local services and infrastructure, such as transport improvements, education and training programmes, and community facilities. The payments are intended to reflect the role that rural and coastal communities will play in supporting the UK’s clean energy transition.
Energy Secretary Ed Miliband said: ‘If you live near an offshore wind or solar farm, your local community should benefit from supporting this nationally critical mission.
‘The Prime Minister’s mission to become a clean energy superpower is creating good well-paid jobs in these areas, building the infrastructure we need to get energy bills down for working people.
‘Our Plan for Change will revitalise Britain’s coastal and rural communities creating community wealth, better facilities and energy security for the country.’
The size of the contributions to local areas will vary depending on the size of the projects. Smaller developments could contribute tens of thousands of pounds annually and larger projects potentially contributing millions. Local communities would be given a say in how the funds are used.
The plan also explores options for shared ownership of renewable energy projects, allowing communities to hold a financial stake in infrastructure and reinvest any returns locally.
These proposals build on earlier measures outlined in the Planning and Infrastructure Bill, which include electricity bill discounts of up to £2,500 over 10 years for households located within 500m of new or upgraded electricity transmission infrastructure.
The government is seeking views on which types of energy infrastructure should be included under the new community benefit framework. This could cover a range of technologies, including renewable and low-carbon electricity generation, as well as energy storage.
Community benefit schemes are already common practice in several European countries, including Ireland, Germany, France, Italy, and Spain. The UK’s proposed approach aims to formalise such contributions and ensure that the economic and social benefits of clean energy infrastructure are shared with the communities that host them.
James Robottom, Head of Policy at RenewableUK, said: ‘Renewable energy developers have a long history of providing a wide range of benefits for local communities, such as community benefit funds which support local initiatives, electricity discounts, employment initiatives and environmental projects.
‘We welcome the government’s consultation and will engage with it to ensure that the benefits received by local communities hosting energy infrastructure are proportionate and continue to meet their needs. Renewable energy developers are good neighbours and remain committed to providing benefits at an appropriate level to enable local communities to thrive all over the country.’
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