FEATURE SPONSOR
LEGAL EAGLES COMMUNITY BENEFITS WHO BENEFITS?
In recent years there has been much discussion about the validity and need to make community benefit payments to offset the perceived harm caused to communities from wind farm developments. Scottish Renewables has estimated that, in Scotland alone, around £5,000,000 is paid annually through locally agreed community benefit payments.
infrastructure levies, and as such should not be a material consideration to the decision maker when determining either a planning application or a section 36 application.
However would wind farm developers benefit if they were assessed in the same way as planning gain? There may be a feeling within the industry that, that would lead to more reasonable, fair and transparent payments. But if they were a material consideration, would that unreasonably sway a decision maker to turn a blind eye to any harm caused by the development in order to secure improved community facilities? Perhaps they already do sway decision makers, rightly or wrongly, and that could import a risk to the consenting process and increase the risk of legal challenge.
COMMUNITY BENEFITS
Community benefits are promoted as a positive thing but are they? Rather, do they upset the balance in the planning system? Do they cut across the well-established tests in the Electricity Act 1989? Community benefit payments are voluntary payments, not currently subject to the same tests as planning gain contributions or community
SCOTTISH PLANNING POLICY The recently published draft Scottish Planning Policy expressly refers to community benefits for renewable energy developments and the feedback as part of the consultation has been mixed as to whether that is appropriate. Many respondents are concerned about a ‘financial inducement’ being a material consideration, perhaps because of the reputation risk which could arise and, linked to that, the public’s perception.
IMPROVING PERCEPTION
It is not unusual for a community benefits to be seen as a bribe or inducement; a way to buy consent. They may also be seen as encouraging development, not necessarily
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in the best place, but in the place most easily bought off or influenced by the benefit to be paid. They may also fracture a local community torn against a wind farm development; locals may feel that they are losing out on a community benefit on offer if others in the community object to it.
SO HOW BEST TO MAKE SURE THAT ANY COMMUNITY BENEFIT IS PROPORTIONATE AND IMPORTANTLY DOES BENEFIT THE COMMUNITY? Engagement with the community either through the local authority or a community council is essential to find out what the community would benefit from. In some cases, improved accesses or job opportunities may be welcomed whereas in others the creation of or contribution to a community facility may be more useful. Or should the community get the opportunity to buy into the wind farm development and share in the profits; thus benefiting at the same time and the developer. By tailoring the benefits, it is more likely to be perceived in the right way by both the community and decision maker alike.
CONCLUSION
Clearly one size does not fit all – however with some thought and engagement, community benefits should benefit all.
Trudi Craggs Partner
Dundas & Wilson
DIVERSIFICATION
The North East supply chain is also diversifying to meet the challenges of delivering a more balanced energy mix. Our lawyers have worked closely with Able UK on the development of a strategic 820 hectare site on the Humber comprising Marine Energy Logistics and Business Parks to service the renewable energy sector.
PERSONAL EXPERIENCE
James Bryce, a member of the energy team at two international law firms over the last ten years, includes fund-raising for oil and gas exploration companies, advising on the development and sale of two onshore wind farms with over 160MW of generating capacity, as well as structuring a number of solar joint ventures.
INVESTMENT AND BENEFITS The scale of investment that is necessary in order to cater for the needs of an expanding energy sector is enormous, with up to £100 billion needed to ensure that off-shore wind generation realises its potential in the UK and over £3 billion needed to finance planned carbon capture and storage projects in the North East.
This has the ability to create widespread social and economic benefits for the north East as the sector reaches its full potential.
James Bryce Square One Law
www.windenergynetwork.co.uk
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