Community benefits in Wales

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Community benefits in Wales

  1. 1. Enjoying The BenefitsThe value of onshore wind farm Community Benefit Funds to Wales
  2. 2. Executive summaryRenewable energy is seen by Welsh Government as having an important rolein economic development. However, there are many other benefits theindustry is bringing to local communities up and down Wales which areperhaps not so acknowledged or understood. Many renewable energyoperators participate in the success of local communities both in terms of theirtime and through voluntary contributions to local ‘good causes’ through avariety of different schemes. However, the number and form of such schemeswhich operate in Wales is unknown.Community benefit funds and schemes (hereafter known as CBFs) typicallytake the form of an annual payment by the developer of a sum linked to thecapacity of the wind farm. They are usually intended for use on local projectsof a socially beneficial nature, such as environmental preservation or socialregeneration. Aside from simply making grants available for local use,community benefit funds present an opportunity for local communities to play agreater part in meeting their own needs in a way that delivers long-term andsustainable benefits.In particular, this report explores the local dimensions of CBFs on the onshorewind power sector - however, offshore wind power also provides a high level ofcommunity support, and our recommendations would also apply to offshorewind power projects to a large extent. It aims to demonstrate the responsibleway in which onshore wind farm owners operate, and how the sustainability ofthe energy they produce goes hand-in-hand with the sustainability of thecommunities which they serve.Our research focuses on the local dimensions of wind energy development,and more specifically it seeks to examine the provision of wider communitybenefits which support long-term sustainability at the local, as well as global,scale. The range of potential benefits includes economic dividends throughlocal share ownership, community benefit funds, contributions to the social,economic or environmental infrastructure for the area, or reduced energy billsfor local residents.
  3. 3. Since the first commercial wind farms were commissioned in Wales, the issueof ‘community benefits’ has been treated on an ad hoc basis. There has beenlittle systematic investigation of their number and scope, and of the uses towhich these benefits are put. At the same time there has been rapid evolutionin the scale and form of community benefits provided by wind farmdevelopments. In response, the Welsh Government is seeking to steer andimprove the process of negotiating and delivering community benefits.Many Welsh wind projects are already delivering community benefits which fallwithin the definition of sustainable development, but there are gaps in ourknowledge surrounding their number, scale and scope.As wind farms increase in number and size, CBFs are becoming morecommon. Further research into current funds may therefore be valuable giventhe increasing use of this model. This study only considers currentlyoperational onshore wind farms, and not those that relate to projects which arecurrently in the planning system, have planning approval, or that are currentlybeing constructed.The study found that there are a wide range of CBFs operating in Wales whichcontribute extremely positively to local communities. In particular, the datademonstrates that:• Some four out of every five wind farms operating in Wales already contribute to their local communities in a structured way;• Many different entities benefit from wind farm contributions;• CBFs in Wales are mainly administered through localised trusts (or similar bodies), or community councils;• The most common form of wind farm operator payment is fixed amounts, followed by an amount calculated per megawatt (MW) installed; and• From 55% of respondents across Wales, the amounts paid to CBFs or similar in 2011 totalled £623,853.30.There is a compelling case based on transparency, openness and the ability tolearn from best practice, for a register such as the Scottish Government’sRegister of Community Benefits from Renewables, as administered byCommunity Energy Scotland. As such, we believe the followingrecommendations should be adopted by Welsh Government:
  4. 4. • Welsh Government needs to provide funding to undertake the production of a CBF register for ‘live’ or approved wind farms that is easily and publicly accessible;• In addition, Welsh Government should provide funding to facilitate the production of a CBF register for newly-submitted proposals;• CBFs should ensure that they are suitable for industry and communities, and that they are managed in a ‘smart’ way, and Welsh Government should earmark funding to Community Energy Wales (or a similar body) to support communities in developing the best CBF for their particular needs;• Welsh Government should consider how CBF payments can be most effective over a project lifetime, given the increasing phenomenon of ownership of projects being transferred to vehicles such as hedge funds, private equity funds, etc. It is important to note that detailed information for this study was provided from the bulk of RenewableUK Cymru membership, while those not involved with the organisation at a membership level (particularly financial institutions) were less likely to provide a response.The study also includes a register of wind farm community benefit funds inWales, detailing fund value and administrative arrangements.
  5. 5. Table of ContentsForeword 5Introduction 6Methodology 8Structure of the Report 11Context 12Findings 17Entities employed to administer CBFs 21Contribution methods 25Register of wind farm CBFs in Wales 29Additional comments 33Conclusions and Recommendations 35Appendix 1 39 Report produced by Capital Connections for RenewableUK Cymru
  6. 6. Foreword 2012 has revealed a Wales of three parts; the south, where approval has been granted for one of the UK’s biggest wind farms, and where local companies are lining up to support the development and installation; mid Wales, which is beset by local anxiety about grid and transport, and where local economies stall as jobs, skills and young people leak away from market towns and rural communities; and the north, where offshore wind farms are revitalising ports and coastal communities.This description is a gross oversimplification but it does serve to illustratesome key differences, and also to point out that Wales’ natural resources havepresented a huge opportunity for some of our communities, which is currentlynot being grasped.Community benefits are important, although we should remember that theyare only one of many reasons why environment, economy and society benefitsfrom onshore wind. This report is a key part of the overall jigsaw ofinformation, highlighting the additional financial support given to communitiesin and around many of our wind sites in Wales.The total value paid into Community Benefit Funds (or equivalent) during 2011is conservatively estimated at more than £620,000, a value which is set to riseconsiderably as more wind farms come on-stream, and as the index-linkednature of many of the funds evolves.As an industry, as a civil society, and as a country, we need to examine howwe use these funds, and whether there is more that can be done. We have aonce-in-a-lifetime opportunity to revitalise, to stimulate and to strategicallysupport communities and businesses in parts of Wales which have hithertoproved hard to reach. I hope that this can prove to be another important pointin an ongoing process which delivers greatest benefit to the parts of Waleswhich are in greatest need.Dr David ClubbDirector, RenewableUK Cymru
  7. 7. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK CymruIntroductionPURPOSE OF THE REPORT The renewable energy industry in Wales plays a vital role in our economy and potentially our e n e r g y s e c u r i t y. B u t t h i s contribution extends beyond the immediate economic benefits of the business. It often supports a wide range of projects and partnerships to build stronger and more sustainable communities.RenewableUK Cymru set out to discover the extent and nature of wind farmcommunity benefit funds in Wales, upon which further work could potentiallybe undertaken to evaluate how such funds could continue to contribute to localdevelopment, and investigate factors that aid or constrain their meaningfuluse.The overarching objective of the study was to determine the proportion of windfarms in Wales which have community benefit funds, and more specifically:• To discover the extent and nature of wind farm community benefit funds in Wales;• To compile a register of wind farm community benefit funds in Wales, detailing fund value and administrative arrangements; and• To make a series of policy recommendations regarding their operation at a pan-Wales level.The study was confined to CBFs provided by commercial wind farmdevelopers of grid-connected onshore wind farms, operational in June 2012,and administered by communities or third-parties appointed on their behalf. Itoutlines typical annual contributions per megawatt of installed capacity, which 6
  8. 8. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK Cymruenables us to approximate an amount of monetary contributions paid by theindustry to local communities across Wales.The study also allows us to identify the most common type of fund-managingbody, whether they are Community Councils, Community Trusts, CompaniesLimited by Guarantee, third-party, or Local Authority, administration and, inturn, looks at a selection of case studies which have implications for CBFadministration.The final part of this report outlines implications for operators of CBFs andpolicy-makers – in particular, how the industry can include devolvedgovernment policies in the construction and operation of schemes. 7
  9. 9. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK CymruMethodologyIn view of the limited data on wind farm community benefits, it was our aim tocreate a comprehensive register of CBFs in Wales using the followingmethodology. Firstly, initial desk research was carried out to determine whatproportion of wind farms in Wales have CBFs and to compile a register ofthese funds.A list of all onshore operational wind farms in Wales (operational at June 2012)was identified which provided us with the name of the development, number ofturbines, megawatt output, developer and owner: Wind Farm Turbines MW Developer Owner Alltwalis 10 23 Catamount/Force 9 Statkraft BDCR II 1 0.5 Bro Dyfi Community renewables Blaen Bowi 3 3.9 Windjen Power Ltd Windjen Power Ltd Braich Ddu Farm 3 3.9 REG WINDPOWER Bryn Titli 22 9.9 RWE Npower Renewables Beaufort Wind Limited Carno A & B 56 33.6 RWE Npower Renewables Beaufort Wind Limited Carno Extension (Carno 2) 12 15.6 Amegni Amegni Castle Pill Farm - repowering 4 3.2 Infinergy Cefn Croes (inc Devils Bridge) 39 58.5 RDC Falck Renewables Cemmaes 18 15.3 First Windfarm Holdings Ltd First Wind Farm Holdings Dyffryn Brodyn 11 5.5 New World Power RES Ferndale 8 6.4 Infinergy Infinergy Ffynnon Oer 16 32 RWE Npower Renewables RWE Npower Renewables G24I 1 2.3 Ecotricity Ecotricity Hafoty Ucha 1 1 0.6 Tegni Tegni Hafoty Ucha 2 extension 2 1.7 Tegni Tegni Hafoty Ucha 3 extension 1 0.85 Tegni Llandinam P & L 103 30.9 Scottish Power/Eurus Energy ScottishPower/Eurus Energy Llangwyryfon repowering 11 9.35 First Windfarm Holdings Ltd First Wind Farm Holdings Llyn Alaw 34 20.4 RWE Npower Renewables Beaufort Wind Limited Maesgwyn 13 26 Pennant Walters Mawla (Moel Maelogen) 3 3.9 Energiekontor Co WP Mombkg UK branch Moel Maelogen Extension 9 11.7 Ail Wynt Cyf Monier Redland Plant 1 0.5 Infinite Energy Mynydd Clogau 17 14.45 Novera Infinis Mynydd Gorddu 19 10.2 Amgen Beaufort Wind Limited Parc Cynog 5 3.6 Nuon Renewables Nuon Renewables Pendine (Parc Cynog Extension I) 6 4.8 Nuon Renewables Nuon Renewables 8
  10. 10. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK Cymru Rheidol 8 2.4 E.ON UK Renewables Infinis Rhyd-y-Groes 24 7.2 EcoGen, Seawest & Tomen joint venture E.on Renewables Solutia UK Ltd 2 5 Wind Direct Wind Direct Ltd Swansea Docks 1 0.25 EnergyTech Swansea Bay Energy Partnership ltd Taff Ely 20 9 Perma Energy RWE Npower Renewables Tesco Distribution Centre 2 1.6 TNEI Tir Mostyn & Foel Goch 25 21.25 Windjen Power Ltd HG Capital Trysglwyn 14 5.6 RWE Npower Renewables Beaufort Wind Limited Wern Ddu (Craig Lelo) 4 9.2 Tegni Triodos RenewablesContact details were then identified for each of the developers/operators, andthe following basic information was requested:๏ Name of company๏ Name of wind farm(s) operated๏ Post code(s) of wind farm(s) operated๏ MW capacity of wind farm(s) operated๏ Approximate age(s) of wind farm development(s) operated๏ Name and position of respondent❖ Value of community benefit fund (if any)❖ How the fund is administered❖ Rules on use of the fund❖ An open-ended question prompting further comments on either their own CBF arrangements or CBFs in general.The actual questions asked were:• Does your company contribute to a Community Benefit Scheme or Fund? (If the answer was ‘No’, then there were no further questions)• To which entity do you contribute to the Community Benefit Scheme or Fund (i.e. the name of the Scheme or Fund and who administers it)?• What is the governance structure of the Community Benefit Scheme or Fund you contribute to (e.g. a community trust, a co-operative, or a Local Authority-run entity)?• What amount of contribution do you make to a Community Benefit Scheme or Fund (e.g. a payment per MW capacity, or per MW produced, or in another way, for example, ‘in kind’ benefits)? 9
  11. 11. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK Cymru• For what activities are the monies of the Community Benefit Scheme or Fund used (e.g. community projects, sponsoring community events or sports teams, etc)?• Do you have any further comments about your engagement with Community Benefit Schemes or Funds (e.g. do you think they work well, or do you think there are alternative ways that such funding could better be distributed)?The questions themselves were designed to capture quantitative data thatallowed categorical analysis. The open question at the end was included togather richer, qualitative data. Quantitative categorical data was then reportedas percentages for ease of comparison. Qualitative data was subjected to briefcontent analysis categorising the substantive points to allow quantitativepresentation of the data, together with the quotation of representativestatements.ISSUES AND LIMITATIONSWe recognised that the sensitive nature of the data might limit responses,therefore research subjects were contacted in advance and assured that thenature of the data was appreciated and would be treated sensitively andconstructively.The inclusion of case studies afforded greater insights, as did gathering theviews of operators. Issues arising from these case studies and commentscould provide the basis for further investigation in this area.It is hoped this will also contribute to broader thinking about the way in whichCommunity Benefit Funds in Wales might be further developed. 10
  12. 12. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK CymruStructure of the ReportIn the remainder of this report we:• Outline the context for the study;• Present our findings; and• Put forward our conclusions and make some recommendations for the industry and policy-makers. 11
  13. 13. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK CymruContextThis report is framed against the background of recent major pieces of WelshGovernment legislation (and proposed legislation), and the undertaking of theBanding Review for the Renewables Obligation by the Department of Energyand Climate Change.Launched in March 2012, the Welsh Government’s Low Carbon Transitionprogramme has a general aim of ensuring investment delivers jobs, helpingbusinesses maximise opportunities, and ensuring communities benefit fromenergy developments by making Wales ‘best in class’. “[We will] act to ensurethat communities benefit from renewable energy development and strive to beexemplars,” - Energy Wales: A Low Carbon Transition (March 2012). “Wales,like the rest of the world, is working hard to make the move to moresustainable, low carbon energy. It is vital that we do this in a way that issensitive to the needs of our communities, creates sustainable, local jobs andsupports Wales’ wider economy,” Environment Minister John Griffiths 1.In July 2011 the Welsh Government’s Legislative Programme 2011-16signalled their intention to introduce a Sustainable Development Bill tostrengthen the approach of ‘One Wales: One Planet’ and change thiscommitment to a legal duty. First Minister Carwyn Jones said: “Sustainabilityis...about defining the long term development path for our nation. It meanshealthy, productive people; vibrant, inclusive communities; a diverse andresilient environment and an advanced and innovative economy.”2In addition, the Climate Change Strategy for Wales, introduced in October2010, acknowledged the importance of economic development in tacklingclimate change: “We want to ensure that Wales is in the best possible positionto not only create new jobs and supply chain opportunities, but to take1 http://wales.gov.uk/newsroom/firstminister/2012/120314energyvision/?lang=en2 http://wales.gov.uk/topics/sustainabledevelopment/sdbill/?lang=en 12
  14. 14. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK Cymruadvantage of the potential to export energy, expertise, goods and services toother nations seeking to make the transition to a low carbon economy.”3The end of July 2012 saw the publication of the Banding Review for theRenewables Obligation by DECC 4, which sets the Government’s mainmechanism for supporting large-scale renewables for the period 2013-17. TheRenewables Obligation (RO) is part of the UK Government’s commitment toincreasing the deployment of renewable energy to make the UK more energysecure, help protect consumers from fossil fuel price fluctuations, driveinvestment in new jobs and businesses in the renewable energy sector, aswell as to keep the UK on track to meet its carbon reduction objectives for thecoming decades (the UK has committed to generating 15% of our energy fromrenewable sources by 2020).The RO is currently the main financial mechanism by which the Governmentincentivises the deployment of large-scale renewable electricity generation.Support is granted for 20 years, which balances the need to provide investorswith long-term certainty with the need to keep costs to consumers to aminimum.The level of support for onshore wind for the Banding Review period will bereduced to 0.9 Renewable Obligation Certificates (ROCs), guaranteed untilMarch 2014. However, the Government has undertaken a call for evidence,begun in September 2012 and reporting in early 2013, which will re-assessonshore wind industry costs. If findings of the call for evidence identify asignificant change in generation costs, the Government will initiate animmediate review of onshore wind ROC levels, with any new supportarrangements for onshore wind taking effect from April 2014. As part of the callfor evidence, they will examine how communities can have more of a say over,and receive greater economic benefit from, hosting onshore wind farms.The Banding Review has begun to focus the debate in monetary levels ofcommunity benefit funding. Although the value of payments are certainlysignificant (renewables consultancy Regeneris cite that some developers are3 http://wales.gov.uk/topics/environmentcountryside/climatechange/publications/strategy/?lang=en4 http://www.decc.gov.uk/en/content/cms/news/wms_ro_lm/wms_ro_lm.aspx 13
  15. 15. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK Cymruproposing the equivalent of £5m over the lifetime of a 50MW scheme5), thereremains a general lack of clarity on the purpose and most effective use of thepayments.CBFs are a unique way of developing a range of additional local communitybenefits. The Joseph Rowntree Foundation cites a range of reasons for theirpositive outcomes, including the sharing of benefits of developments with hostcommunities, addressing social justice linking local resources with localeconomies, and securing the support of local communities 6.RenewableUK’s community benefits protocol for England proposes a minimumpayment equivalent of £1,000 per MW of installed capacity, index linked to theRPI (for schemes over 5 MW). Setting this minimum figure was meant to helpensure that smaller developers were not disadvantaged given the pressuresbeing placed on the costs of onshore wind and the risk of further reductions toROCs and FIT levels. However, developers can offer significantly largeramounts than the minimum and in reality the value of benefits over recentyears has increased significantly with £5,000 per MW frequently being offeredon schemes by developers and operators keenly interested in the success oflocal communities, which in many cases is equivalent to around 6-7% of theirdevelopment costs. As a comparison it is worth noting that John Lewis - widelyheld as an exemplar of Community Benefit - contribute approximately 0.25%of their turnover to such schemes 7.Against this background there is potentially a need for more information fordevelopers, and indeed communities, so that they may look at a range of waysin which community benefits can be negotiated, administered and distributed,making all parties better equipped to develop the best possible framework fornew projects across Wales, as well as a realisation by policy-makers, LocalAuthorities, and local communities of the financial constraints whichdevelopers are under given the cost of bringing schemes on-stream.The objective of this report is to improve information on community benefits inWales. Although, as mentioned above, communities are becoming more aware5 http://regeneris.co.uk/latest/blog/entry/money-on-the-wind-the-future-of-wind-farm-community-benefits6 http://www.jrf.org.uk/publications/wind-energy-disadvantaged-communities7 http://www.johnlewispartnership.co.uk/content/dam/cws/pdfs/financials/interim%20reports/john_lewis_partnership_interim_report_2012.pdf 14
  16. 16. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK Cymruof CBFs and their potential impact, there is also an important role for currentdevelopments informing best practice of future ones (including theidentification of local factors which may, for good reason, cause differences inthe operation of different CBFs). This greater openness has, for example,been highlighted as important by the Scottish Government8, leading to theintroduction of a database for payments in Scotland. Of overriding importance,however, is the need for good quality information on the way in whichcommunity benefits are being used and managed and the impacts they areachieving for local communities. Developers, communities and otherstakeholders need to learn from this evidence.It is important to understand the way CBF resources are being used, and toask questions about whether their allocation could be undertaken in a morestrategic way. Even if many of them are responding to very specific and verylocal needs, they still may be better spent in an overall socio-economic contextaccording to the communities which they serve (see the chart on the nextpage) by, for example, using the funding to leverage monies from otherfunding streams (e.g. European Social Fund, Welsh Government, etc). Theremay also be question marks regarding the awareness that some fundsthemselves have of such opportunities, which may potentially provide greaterand more lasting benefits.8 http://www.scotland.gov.uk/Topics/Business-Industry/Energy/Energy-sources/19185/Communities 15
  17. 17. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK Cymru 16
  18. 18. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK CmyruFindingsThe total number of responses to the study was 21 out of a possible 37,representing a 56% response rate. Of those who did not respond, many are atthe smaller end of the scale in terms of contributions to CBFs, although somelarger wind farms are operated or owned by large financial institutions (forexample, hedge funds or private equity funds) which makes information-gathering problematic.It is important to recognise that RenewableUK Cymru is a member-ledorganisation, which builds consensus with stakeholders and raises awarenessamong the general public. As such the organisation has a standing within theindustry which allows far-reaching access to those operating renewablesprojects on a day-to-day basis. Detailed information was provided from thebulk of this membership, while those not involved with RenewableUK at amembership level (i.e. financial institutions) were less likely to provide aresponse. A full list of the details of respondents can be found in Appendix 1.Of the ones which did respond, the following table shows the type ofdevelopment involved and whether it contributes to a CBF: Name of wind Capacity Age of wind Operating CBF farm farm scheme? Alltwalis 23MW 2 years Yes Wern Ddu 9.2MW 2 years Yes Hafoty Ucha 3.15 MW 8 years Yes Vestas 575kW 9 years Yes Nordtank 575kW 4 years Yes Carno II 15.6 MW 3 years Yes Llandinam 30MW 20 years Yes Bryn Titli 9.9MW 18 years Yes Carno 33.6MW 16 years Yes 17
  19. 19. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK Cmyru Ffynnon Oer 33MW 6 years Yes Llyn Alaw 20.4MW 15 years Yes Maesgwyn 26MW 18 months Yes Mynydd Gorddu 10.2MW 14 years Yes Trysglwyn 5.6MW 14 years Yes Taff Ely 9MW 19 years Yes Cefn Croes 58.5 MW 8 years Yes Rhyd-Y-Groes 7.2MW 20 years No Moel Moelogan 11.7MW 4 years Yes Castle Pill 3.2MW 3 years No Ferndale 6.4MW 2 years No Dyffryn Brodyn 5.5MW 18 years NoAs we can see from the above, table, the vast majority of wind farmdevelopments (80%) contribute to a CBF: How many wind farms operate a Community Benefit Fund or Scheme? No Yes 20% 80% 18
  20. 20. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK Cmyru “Our system works quite well as technically it is an ‘ownership’ arrangement with profit sharing rather than a ‘benefits’ payment from a developer. However, we are a voluntary committee and it is difficult to run the business. We believe there should be more ownership than there currently is, and that all developers should establishmechanisms for part local ownership so that communities can become directbeneficiaries and to enhance their experience of having wind farms nearby.We also believe that benefits funds should be targeted by communities at localenergy resilience and low carbon / energy efficiency measures, as well asregeneration activities. Much more work needs doing in building ourawareness for considerable changes to our use of energy and where we get itfrom if we are to take the issue of tackling climate change seriously and act inearnest.”Michael Phillips, Bro Dyfi Community RenewablesCASE STUDY ONELocal Electricity Discount SchemeThe Local Electricity Discount Scheme (LEDS)9 is a new RES initiative which seeks todeliver direct and tangible benefits to people living and working closest to theirproposed wind farms.LEDS will be offered as an additional benefit to RES’ Community Benefit Funds,which at its new sites provide £2,000 per megawatt (MW) annual contributions tolocal communities. It is proposed that total LEDS payments for a site will be £3,000per MW per year. If LEDS costs less than £3,000 per MW per year then the differencewill be added to the Community Benefit Fund, meaning an overall community benefitof £5,000 per MW per year.Under the proposed LEDS initiative those residential, community and businessproperties closest to a proposed RES wind farm will each receive a minimum discountof £100 per year off their electricity bills, which will be paid directly to their electricitysupplier. This minimum figure represents almost a quarter of the average annualelectricity bill in the UK (£453 in 2011 based on the latest figures released by theDepartment of Energy and Climate Change, DECC, 29 March 2012). Paymentswould commence once the wind farm is operational.The precise area, and number of properties, qualifying for a LEDS scheme will varyfrom site to site, taking into consideration factors such as the number and capacity ofwind turbines proposed and housing density around the wind farm.The catchment area for each RES LEDS scheme is calculated by taking a straightline distance - the Set Distance - from each wind turbine (initially set at three9 http://www.thisissouthwales.co.uk/Windfarm-plan-brings-benefits/story-16745570-detail/story.html 19
  21. 21. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK Cmyrukilometres) and identifying all the postcode geographic boundaries (as defined byOrdnance Survey) with properties on or within this Set Distance to form the QualifyingArea. The Set Distance may be increased or decreased to ensure that the propertieswithin the final Qualifying Area will receive a discount of at least £100 per year.LEDS at Bryn LlywelynRES presented its first LEDS scheme at its proposed site in Bryn Llywelyn inCarmarthenshire. This follows initial consultation with the local community around theBryn Llywelyn site which indicated that almost 80 per cent of respondents supportedthe idea of discounted electricity and almost 75 per cent would be interested inparticipating in such a scheme. If LEDS is successful at Bryn Llywelyn it is anticipatedthat it could be launched at other RES wind farms that are in development later in2012.LEDS at Bryn Llywelyn will provide an annual discount to the electricity bills ofproperties close to RES’ proposed wind farm, if it becomes operational. The schemeis open to all residential, commercial and community buildings (including schools,churches and village halls) within the eligible area that have an electricity meter. Anannual discount of £225 will be applied to each property’s electricity bill, paid directlyto their electricity supplier, once the wind farm is operational. In addition, LEDS areoffering a Community Benefit Fund of almost £100,000 per year, which will supportlocal groups and initiatives.RES has written to all qualifying properties directly, offering them the opportunity toregister interest in joining the discount scheme. At Bryn Llywelyn, the discount isavailable to properties within three and a half kilometres of each proposed windturbine. The discount will be available to all properties within the qualifying arearegardless of people’s opinion on the proposed wind farm. However, the discount willonly be implemented if the wind farm is approved and constructed.The annual discount will apply once the wind farm is fully operational, which couldtake between two and four years from planning consent being granted. It will be paidfor the full lifetime of the turbines, or for as long as people live within the qualifyingarea.There are several ways residents register their interest in LEDS at Bryn Llywelyn, andby using the Unique Reference Code in a letter each gets sent, they can eithercontact via mail, telephone, email, or online. The discount is paid per property only,and therefore only one person per property needs to register. 20
  22. 22. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK CymruEntities employed toadminister CBFsCommunity benefit negotiations often result in annual cash payments tocommunities throughout the lifetime of the renewable energy scheme. Thisoffers the community a significant opportunity to plan for and developcommunity initiatives that could have long-term, lasting benefit. It also givesrise, however, to a number of considerations that need to be addressed:• Establishing a vision for the fund and involving the entire community in decision-making: How will all sectors of the community be given the opportunity to decide on the way that community benefit funds are used and managed? Some key elements of the fund’s purpose, organisation and operation need to be acceptable to the community at large and this should be decided by appropriate community consultation.• The choice of a legal entity – i.e. who actually receives the payment? Is it the Community Council, Trust, Forum, company, or a local steering group? Should it be a specific legal entity, set up to accept payment and carry the responsibility that goes along with owning funds, and if so, what type of legal entity should it be ?• Managing community benefit funds – i.e. what happens to the money when it is received? What does this entity do with the money? What are its objectives? Should these objectives be exclusively charitable in nature? What are the tax implications? Can tax be avoided? 21
  23. 23. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK CymruOverall, some 34 separate entities benefit from the contributions of therespondents: Foundations/Trusts/Forums Town/Community Councils Local Community Projects (directly) One-off donations Charities Social Enterprises Private Companies Local Authority 15 10 5 0 EntitiesFrom the diagram above it can be seen that entities such as foundations andtrusts - along with town and community councils - are the preferred vehiclesfor CBFs. The advantage of trusts and foundations is that they can be set upto be community-led organisations, often managed by a board of trustees or asteering group, is open in terms of its administration, and can incorporateobservers from local authorities and wind farm operators. They usually providesome measure of economic, environmental, educational, social or culturalbenefit for people living in the area.There are two main models for a Legal Entity associated with a Town orCommunity Council which are most commonly considered for theadministration of community benefit funds:• A Company incorporated under the Companies Acts with limited liability, where the limitation as to liability is by a Guarantee, and where the Members of the Company each undertake to pay on a specified date, or on the happening of a specified event (usually the winding up of the Company), such an amount up to a fixed sum (usually £1) as may be required to settle any outstanding debts of the Company, such Guarantee Companies being commonly, although not invariably, used for charitable purposes. 22
  24. 24. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK Cymru• A Local Community Trust set up by the local community the purpose of which is to receive, administer, and distribute funds on behalf of the community through trustees appointed by the community.Confusion can sometimes arise as both models are commonly referred to as“trusts”, although only the second model is a trust in the true legal sense.Despite having separate legal status to a Trust, communities adopting theCompany Limited by Guarantee model often name the organisation “[Local]Community Trust” – hence the common confusion.Other notable channels of contribution are to the Bro Dyfi CommunityRenewables scheme (a community energy co-operative registered under theIndustrial and Provident Societies Acts) through a share interest dividend anddonation respectively (by the operator of the BDCR II development);contributions made at the discretion of the operator (as in the case of HafotyUcha); and through a professional grant-making charity (i.e. the Taff Elydevelopment who make contributions via Community Foundation Wales). “Funds shall be applied for the benefit of the residents of the communities. The funds should aim to promote community spirit and bring people together; enhance quality of life and promote people’s well-being; and foster vibrant, sustainable communities. The funds should not be used for political, religious, entertainment or hospitality purposes, or for any purpose adverse to the wind farm operators interests. Weare keen that the funds are used to secure other grants and funds on amatched-funding basis, allowing the community to secure maximum benefitfrom the wind farm contributions.”Monika Paplaczyk, Triodos Renewables (Wern Ddu) LtdCASE STUDY TWOWindfallWindfall (officially called the Mid Wales Community Energy Trust) collects a proportionof the revenue from energy generation in Mid Wales and redistributes it among localcommunities. This money is offered as grants for energy efficiency and renewableenergy projects to communities across Mid Wales. The basic income is supplementedwith income from landfill operators, through the Landfill Communities Fund, tomaximise the financial capacity of the scheme. Windfall is a not-for-profit company setup specifically to fulfil these aims. 23
  25. 25. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK CymruKick-started with money from RWE npower renewables and ENTRUST, Windfallsecured £104,000 for its first projects in 2005. As a result, the communities of Carnoand Trefeglwys enjoy the benefits of renewable energy systems such as wood energyand photovoltaic systems. In addition, educational programmes have been part of thisscheme.Building on this success, Windfall plans to extend its operation to deliver benefits toother communities across Mid Wales. While the Trust recognises the value of localFunds with very broad community benefit criteria, it offers itself to current andpotential energy generators as a vehicle to complement these, by delivering lowcarbon benefits from renewable energy through community action. 24
  26. 26. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK CymruContribution methodsIn all, there were four distinct methods of payment, and some 32 ‘channels’ ofpayments, which were as follows: percentage of profits (1); per MW installed(6); fixed payments (24); and in-kind (1): 0 10 20 30 % of profitsPer MW installed Fixed payments In kindFixed payments are the most common form of contribution, and the amountsquoted were as follows: Wind Farm Base level of payment / Actual level of payment to which entity (2011) Alltwalis £75,000 per annum index £78,600 linked / Alltwalis Wind Farm Community Benefit Trust Fund BDCR II 5-10% of profits / Ecodyfi Undisclosed Bryn Titli £2,500 / Town Council £3,530.38 £2,500 / Community £3,530.38 Council 25
  27. 27. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK Cymru Carno 2 £2,000 per MW installed, £6,000 per annum indexed linked / Carno Community Trust Fund £2,000 per MW installed, £6,000 per annum indexed linked / Llanbrynmair Local Community Trust Fund £2,000 per MW installed, £20,000 per annum indexed linked / Mid Wales Community Energy Fund (Windfall) Carno A & B £12,000 / Carno £18,156.08 Community Council Cefn Croes £1000 per MW, index £72,240 linked / Cefn Croes Community Trust Ffynnon Oer £22,000 / Upper Afan £25,978.84 Forum Hafoty Ucha £1k per MW installed / £4,000 contributions made at the discretion of the owner Llandinam P & L £5,000 / Celtpower ltd £5,000 £20,000 / Llandinam £20,000 Community Trust Llyn Alaw £16,000 / Tref Alaw £23,059.1 Community Council £4,000 / Llannerch y £5,776.98 Medd Community Council £4,000 / Mechell £5,776.98 Community Council £2,000 / Community £2,000 Foundation Wales Maesgwyn £175,000pa / Neath Port £175,000 Talbot County Borough Council 26
  28. 28. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK Cymru Moel Maelogen Extension £50k per year x 3 years / £50,000 Nant Conwy Rugby Club £50k per year x 2 years / £50,000 Dyffryn Conwy Rural Enterprise £7.5k per year for life £7,500 (indexed) / Bro Garmon Community Council £7.5k per year for life £7,500 (indexed) / Bro Cernyw Community Council Mynydd Gorddu £10,000 / Amgen £14,670.38 Taff Ely £2,500 / Community £2,500 Foundation Wales Trysglwyn £5,000 / Rhosybol £7,035.18 Community Council Wern Ddu (Craig Lelo) £3,333 / Derwen £3,333 Community Council £3,333 £3,333 £3,333 £3,333The total disclosed amounts awarded in 2011 were £623,853.30. “They work well up to a certain limit. Most wind farms are built in rural areas where employment is the problem. We need to attract businesses to rural areas so that we can keep youngsters in the area. If money is given to local people to fit energy saving devices such as heat recovery systems, heat pumps, etc perhaps we could attract a company making such equipment to set up in the area. Throwing large amountsof cash at communities can have an adverse effect and should be avoided atall costs. Also all the money will do is replace funding previously provided bycouncils and Welsh Government which is letting them off the hook, especiallywhen the wind industry does not enjoy much support from them!”Huw Smallwood, Tegni Ltd 27
  29. 29. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK CymruCASE STUDY THREECefn Croes Wind Farm Community Trust FundThe Cefn Croes Wind Farm Community Trust Fund is a Charitable Trust funded byCambrian Wind Energy aimed at small community led organisations. Priority will begiven to projects in the Community Council Areas of Blaenrheidol and Pontarfynachand then to the wider area of the County of Ceredigion. The fund is managed by aboard of five Trustees representing Cambrian Wind Energy and the Communities ofBlaenrheidol and Pontarfynach.The purpose of the Trust is to support any type of activity that involves local people,through small community organisations, that benefits their community. The activitiesmust provide some measure of economic, environmental, educational, social orcultural benefit for people living in the area. Cambrian Wind Energy will pay £58,500plus inflation annually into the Trust Fund while the Cefn Croes wind farm isoperational.In order to apply for funding, projects have to go through an application procedure.The relevant documentation is online, which consists of a full copy of the applicationguidelines 10; a copy of the application form itself 11; and a copy of the fund’s End OfProject report, which is used for evaluation purposes12. There is also a detailedbreakdown of the funds allocated so far in order to see the type of schemessupported13.10 http://ponterwyd.pumlumon.org.uk/assets/File/Cefn_Croes_Application_Guidelines_Jan10.pdf11 http://ponterwyd.pumlumon.org.uk/assets/File/Cefn_croes_Trust_Fund_Application_Jan10.pdf12 http://ponterwyd.pumlumon.org.uk/assets/File/CefnCroesendofproject.pdf13 http://ponterwyd.pumlumon.org.uk/index.php?lang=eng&page=104 28
  30. 30. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK CymruRegister of wind farmCBFs in WalesAs part of the Scottish Government Community and Renewable EnergyScheme (CARES), Community Energy Scotland are administering the ScottishGovernment Register of Community Benefits from Renewables. This is avaluable tool in helping communities through the community benefit process.By demonstrating the range of ways in which community benefits can benegotiated, administered and distributed, the Scottish Government hopes thatcommunities and developers will be well equipped to develop the bestpossible framework for new renewable projects across Scotland.The Register details fund spend, and provides ideas and advice forcommunities seeking to ensure their funds are spent wisely. Anyone canaccess the database 14 and find out what is happening across Scotland, whichencourages the transparency of schemes, and the sharing of ideas andexperiences. Community Energy Scotland will also be using the information tostudy more closely what is happening in the field. The Register is voluntary,and relies on communities and developers sharing their experiences andlessons learnt. Providers of community benefit funds are encouraged to fill inthe relevant form 15.On the following page are screenshots demonstrating the typical level ofinformation which is available.A basic starting-point for such information regarding a register of wind farmcommunity benefit funds in Wales, detailing fund value and administrativearrangements, has been compiled from the respondents of this study.14 http://www.communityenergyscotland.org.uk/register15 http://www.communitybenefitregister.org.uk/form.aspx?formtype=1 29
  31. 31. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK Cymru “Amegni is a local company set up by farmers who have diversified and live in the local community. We own and operate a 15.6 MW wind farm and our long-term goal is to maintain and keep the benefits from the project locally – hence we believe that local ownership like this is a form of community benefit in its own right (but rarely recognised as so!). As a local company we are continually asked to sponsor and contribute to variouscommunity events, projects and help fund organisations which we continuallydo so over and above the formal payments made. 30
  32. 32. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK CymruIt is unfortunate and unreasonable to only target community benefits at windfarms as very few other industries make such contributions to the communitiesthey operate in. As a local company we do however find the local communityvery supportive to the wind farm and our company - this is probably in part tothe fact that we are a local company but more so they get to share the benefitwith us.”Sion Thomas, AmegniCASE STUDY FOURAn example from Offshore Wind: The Rhyl Flats Offshore Wind FarmCommunity Benefit PackageIn association with the Rhyl Flats Offshore Wind Farm, a community fund has beenset up to assist local community projects in wards neighbouring the wind farm. Theannual fund started at a base level of £90,000, it is index linked each year in line withinflation and will be available throughout the operational life of the wind farm.To maximise the benefit for local communities, RWE npower renewables has workedin partnership with the Welsh Government to develop an administration arrangementfor this fund that presents local communities with easier access to wider fundingoptions through one simple application form.Depending on where community groups are based, they could be eligible to accessfunds from both the Rhyl Flats Offshore Wind Farm Community Benefits Package,and the North Wales Coast Regeneration Area (RA) Community Cohesion Fund,funded by the Welsh Government, in some cases using the same application form.Collectively this gives groups access to a combined fund of £1million per annum tosupport both capital and revenue elements of projects. Groups in Rhyl have access toboth the North Hoyle and Rhyl Flats Offshore Wind Farm Community Benefit Fundswhich are administered by the same organisation, Denbighshire Coastal Partnership.• The base level of the annual fund is £90,000 per year throughout the operational life of the wind farm, normally expected to be in the region of 25 years.• The fund is Index linked each year in line with the retail price index.• £75,000 pa is ring-fenced for the following wards in Conwy: Pensarn, Colwyn, Eirias, Gele, Glyn, Kinmel Bay, Llanddulas, Llandrillo yn Rhos, Llysfaen, Mochdre, Pentre Mawr, Rhiw & Towyn.• £15,000 pa is ring-fenced for Rhyl.• The scheme’s fund capital and / or revenue projects are run by charities, community and voluntary groupsAdministration of the Rhyl Flats Offshore Wind Farm Community FundThe Conwy part of the fund is administered alongside the existing North Wales CoastRegeneration Area (RA) Community Cohesion Fund, funded by the WelshGovernment. These arrangements will exist for the life of the Community CohesionFund. Their aim is to agree an appropriate administration structure to take over afterthe end of the RA Community Cohesion Fund for the remaining operational life of thewind farm.The Rhyl part of the fund is administered by the Denbighshire Coastal Partnership –the current administrators of the existing Community Fund in association with NorthHoyle Offshore Wind Farm. Decisions on how the funding is allocated are made by 31
  33. 33. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK Cymruthe Rhyl Community Partnership, a fully constituted group made up of localvolunteers, representing the town council, voluntary sector, local business community,residents associations and police. 32
  34. 34. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK CymruAdditional commentsAdditional comments collected during the study are as follows: “We currently deliver over £1.4 million per annum of community benefit across our UK portfolio of construction and operational Projects. Our community benefit is administered by a variety of trusts, community interest companies, social regeneration enterprises and local authorities. Our best practice model from our community benefit portfolio is where communities have created an area-specific community interest company and directly administer the funds themselves. This has led tosubstantial regeneration projects being conceived and achieved for the good of theRegion and not just specific communities. Developer input at the beginning andregular engagement is essential to ensure the funding criteria are in accordance withboth parties’ requirements.A third party body to provide secretariat and assistance with general administrationand reporting is also essential to ensure not only that criteria are being adhered to,but also to assist with the realisation of larger projects that may be available viamatch funding the Community Benefit with other applicable funding streams, etc.An empowered group of communities surrounding onshore wind sites in receipt ofCommunity Benefit may require an initial one or two year period to address the‘normal’ community concerns e.g. village hall maintenance etc, but our experiencehas shown that given proper support the same communities will, in a very short time,begin to conceive and implement strategic economic and environmental Projects fortheir wider area.”Daniel Ferrier, Celtpower Ltd (Scottish Power Renewables & Eurus Energy) “Aspects of our community benefit funds which work well: To date relatively modest levels of funding which can make a really significant positive impact on the immediate local area; Engagement of local representatives in decision making – empowering local people have more control over their own destiny; Funding arrangements are bespoke tailored to individual communities; Innovative partnership with Welsh Government – wind farmcommunity funding administered alongside WG regeneration area funding, 2 funds –1 simple application form, funds can match each other, wind farm funding can fundrevenue projects excluded from WG funding.Alternative options for the future:We are constantly striving to improve our delivery of community benefits and as suchare already engaging in many of these initiatives;Considering structures we have used in other areas of the UK more recently;Increased and earlier consultation with local communities and key stakeholders; 33
  35. 35. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK CymruCareful consideration of public perception of new delivery mechanisms / focuses;New approach more aligned to the increased levels of funding available;Focus on securing match funding;Consideration of benefits for wider regional areas;Closer alignment with local, regional and national strategy;Increased focus on economic development including jobs and skills;Possible collaboration amongst developers;This is still local communities’ biggest opportunity to influence wind energydevelopments – care not to exclude them from this process;Remember that small local grants can still make a big difference and whereappropriate should be considered as part of an overall package;Better industry collaboration in demonstrating the benefits already delivered by windenergy.”Katy Woodington, RWE npower renewables 34
  36. 36. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK CymruConclusions andRecommendationsRenewable energy projects are already bringing a range of communitybenefits in addition to generating clean and sustainable energy. These includeincreased job opportunities and improvements to the built and naturalenvironment. In addition, there are a wide range of Community Benefit Fundsoperating in Wales which contribute extremely positively to local communitiesacross the country. Established local funds should be seen as a way of saying‘thank you’ to the communities which host wind farms and other renewableenergy schemes.We can conclude from the data we have gathered that:• Approximately four out of every five wind farms operating in Wales contribute to their local communities in a structured way;• Many different entities benefit from wind farm contributions (a total of 34 were identified through 20 responses);• CBFs in Wales are mainly administered through localised trusts (or similar bodies), or Community Councils;• The most common form of wind farm operator payment is through fixed amounts, followed by a calculated per MW installed; and• Total disclosed amounts awarded to CBFs or similar in 2011 were £623,853.30.In light of current political agendas, the time may have arrived where onshorewind farm developers might want to ensure that specific benefits from theirprogrammes are delivered to communities in a more high-profile andtransparent way, in order to more effectively demonstrate the positiveoutcomes which they produce. 35
  37. 37. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK CymruThe document ‘Delivering community benefits from wind energy development:A Toolkit’ 16 outlines a number of different factors which should be taken intoaccount when designing a community benefit scheme:• Why should community benefits be considered?• What are the costs, risks and rewards of wind energy and how do community benefits fit into this picture?• What is the relationship between community benefits and the planning process?• What are the different ways community benefits can be offered?• Who should benefit and how should this be controlled and managed?• What agreements can and should be put in place to secure these benefits?The advice stresses the importance of concentrating on the benefits which willbe delivered ‘in the round’. It may be advantageous for operators involved withCBFs to revisit the strategic direction of their schemes in order to ensure theyare aligned with wider prevailing economic policy. For example, the LEDScase study outlined previously (Case Study One; page 19) would potentiallyappeal to residents in the area of its operation, but may not necessarily appealto Welsh Government policy with regards to promoting energy efficiency. If,however, the scheme had been developed in conjunction with, for example,the Welsh Government, then it could have been coupled with the Arbedscheme17 to coordinate investment into the energy performance of Welshhomes.CBFs should ensure that they are suitable for industry and communities, andthat they are managed in a ‘smart’ way. One such way is to explore thepossibility of ‘leveraging in’ funding from different streams (e.g. ESF, WelshGovernment, JobCentre Plus). The Rhyl Flats Offshore Wind Farm CommunityBenefit Package (Case Study Four; page 31), for example, incorporates aCommunity Cohesion Fund, funded by the Welsh Government, and in somecases through the same application form. Collectively this gives communitygroups access to a combined fund of £1 million per annum to support bothcapital and revenue elements of projects, thereby maximising spend enabling16 http://www.cse.org.uk/downloads/file/Delivering%20community%20benefits%20from%20wind%20energy%20-%20a%20tookit.pdf17 http://wales.gov.uk/topics/environmentcountryside/energy/efficiency/arbed/?lang=en 36
  38. 38. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK Cymrubigger projects and scalability. There is a role for Welsh Government inoffering advice to CBFs in the most effective way their funding can be used,perhaps through a vehicle such as Community Energy Wales or Mid WalesCommunity Energy Fund (Windfall).There is also a need to ensure that CBFs are attuned to economic imperativesas well as continuing the local social benefits which they clearly bring. CBFscould be used for more strategic regional economic development objectives:for example, voluntary arrangements could support regional economicdevelopment, job creation, and skills enhancement. One suggestion would bethe creation of a 25-year Strategic Search Area (SSA) investment fund foreach SSA, which would have a strategic regional governance model looking atregionally important economic issues and garnering input from organisationssuch as the Regional Economic Fora. Such vehicles could be set up as trustfunds with developers being invited to pay a share of their CBF into it whichcould then leverage matched funding (e.g. European funds), or governmenttop-ups. These SSA funds would ensure a focus on regional economicdevelopment issues, and not just local issues in often relatively sparsely-populated communities.The Welsh Government should help developers and communities choose theright CBF vehicle for their particular circumstances and to make the mosteffective use of the monies to be allocated, possibly through the introduction of‘CBF Advisors’ to enable their link to potential funding which oftenaccompanies government initiatives.Welsh Government should also fund an official public-facing registry (similar tothe Scottish model) which would encourage the sharing of best practice, ideasand experiences. They should fund a further registry which would list windfarm applications that have been approved but not yet constructed, and thetype of CBF arrangements that were being put in place or proposed. Thiswould enable local and regional groups to put forward their own proposals towork with the CBF going forward.Vehicles used to deliver CBFs should ensure transparency of their operations.For example, as best practice the trust or Community Council involved shouldestablish a public-facing website showing the raison d’etre of the scheme,listing how money has been allocated, and on what basis, as well as contactdetails. In addition, a reasonable level of monies from the CBF should be set 37
  39. 39. The value of onshore wind farm Community Benefit Funds to Wales | RenewableUK Cymruaside to ensure that the CBF is promoted at a local level and that localcommunities are made aware of its operations. Both of theserecommendations are in the best interests of the industry so that good worksare not just done but also seen to be done.The debate regarding a community benefits protocol in England has specifieda £1,000 minimum payment per year per megawatt of installed wind powerduring the lifetime of the wind farm. In Wales, the above recommendationsshould make this debate largely irrelevant. Our vision should be for well-thought-out and well-run schemes with clear objectives, that draw in variouspartners to leverage maximum funding, and that are transparent andaccessible to communities and stakeholders. This should be the way forwardfor the industry, working closely alongside communities at a micro level, andwith Welsh Government at a macro level.One should not underestimate the value of CBFs themselves, or the windfarms which they represent. Some 8,600 jobs were provided by the onshorewind industry in 2011, with £548 million added to the UK economy, accordingto a joint study published by RenewableUK and the Department for Energyand Climate Change 18. It found that the real value that wind provides (close to£700,000 for every MW installed in the UK) is over £100,000 within the LocalAuthority area. CBFs are a vital component in showing local communities notjust the environmental benefits of renewable energy but also local economicbenefit. The focus must be on how these communities can extract maximumbenefit and, in particular, the vital part that CBFs play in this dynamic.18 http://www.decc.gov.uk/assets/decc/11/meeting-energy-demand/wind/5585-economic-benefits-onshore-wind-full-pn.pdf 38
  40. 40. Appendix 1 39
  41. 41. Name of company: Triodos Renewbales (Wern Ddu) LtdName of the windfarm operated: Wern Ddu wind farmMW capacity of windfarm operated: 9.2MWApproximate age of windfarm 2 yearsdevelopment operated:Name and position of respondent: Monika Paplaczyk, Investment ManagerName of company: Tegni LtdName of the windfarm operated: Hafoty Ucha (Ll21 0RL)MW capacity of windfarm operated: 3.15 MWApproximate age of windfarm 8 yearsdevelopment operated:Name and position of respondent: Huw Smallwood (Owner)Name of company: Bro Dyfi Community RenewablesName of the windfarms operated: Vestas & Nordtank (SY20 8AX)MW capacity of windfarms operated: 575kWApproximate age of windfarm 9 years and 4 years respectivelydevelopments operated:Name and position of respondent: Michael Phillips, management committeeName of company: AmegniName of the windfarm operated: Carno II (SY17 5JS)MW capacity of windfarm operated: 15.6 MWApproximate age of windfarm 3 yearsdevelopment operated:Name and position of respondent: Sion Thomas – Owner / Operator 40
  42. 42. Name of company: Celtpower Ltd (Scottish Power Renewables & Eurus Energy)Name of the windfarm operated: Llandinam (National Grid Ref SO 028836)MW capacity of windfarm operated: 30MWApproximate age of windfarm 20 yearsdevelopment operated:Name and position of respondent: Daniel Ferrier – Assistant Project ManagerName of company: RWE npower renewablesName of the windfarms operated: Bryn Titli; Carno; Ffynnon Oer; Llyn Alaw; Mynydd Gorddu; Trysglwyn; Taff ElyMW capacity of windfarm operated: 9.9MW; 33.6MW; 33MW; 20.4MW; 10.2MW; 5.6MW; 9MWApproximate age of windfarm 18 years; 16 years; 6 years; 15development operated: years; 14 years; 14 years; 19 yearsName and position of respondent: Katy Woodington, Senior Community Investment OfficerName of company: EC&R (joint venture between EC&R and Eurus Energy)Name of the windfarm operated: Rhyd-Y-GroesMW capacity of windfarm operated: 7.2MWApproximate age of windfarm 20 yearsdevelopment operated:Name and position of respondent: Jonn Barnes, Senior Originator 41
  43. 43. Name of company: Moelogan 2 CccName of the windfarm operated: Moel Moelogan (LL28 5UN)MW capacity of windfarm operated: 11.7MWApproximate age of windfarm 4 yearsdevelopment operated:Name and position of respondent: Geraint Davies, Owner/operatorName of company: Cambrian Wind Energy LimitedName of the windfarm operated: Cefn Croes Windfarm (SY23 3LE)MW capacity of windfarm operated: 58.5 MWApproximate age of windfarm 8 yearsdevelopment operated:Name and position of respondent: Roger Jones, Asset ManagerName of company: InfinergyName of the windfarm operated: Castle Pill wind farm (SA73) + Ferndale wind farm (CF43)MW capacity of windfarm operated: Castle Pill (3.2MW) + Ferndale (6.4MW)Approximate age of windfarm Castle Pill (3 years) + Ferndale (2development operated: years)Name and position of respondent: Lorraine Dallmeier, Project DirectorName of company: RESName of the windfarm operated: Dyffryn Brodyn (SA34 0JE)MW capacity of windfarm operated: 5.5MWApproximate age of windfarm 18 yearsdevelopment operated:Name and position of respondent: Samantha Mayes, Community Relations Co-ordinator 42
  44. 44. Name of company: Pennant Walters Maesgwyn LtdName of the windfarm operated: Maesgwyn (SA10)MW capacity of windfarm operated: 26MWApproximate age of windfarm 18 monthsdevelopment operated:Name and position of respondent: Dale Hart, DirectorName of company: StatkraftName of the windfarm operated: Alltwalis (SA32 7ED)MW capacity of windfarm operated: 23MWApproximate age of windfarm 2-and-a-half yearsdevelopment operated:Name and position of respondent: Rob Fellows (Community Relations Adviser) 43

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