Windfarms and Community Benefit
Many windfarm developers wish to ensure that local communities benefit from
the windfarm. Because several developments were in the pipeline for Dumfries and Galloway, the
Council has created a set of guidelines, known as a protocol, to assist the process.
WINDFARMS AND COMMUNITY BENEFIT: GOVERNANCE PROTCOL
About the Protocol
Community Benefit is available to Community Councils at least
part of whose area is within a 15km radius of the windfarm.
The financial formula: Community Benefit to be paid on the
basis of not less than £1 per megawatt/hour of actual output. This can be negotiated upwards. However, the Benefit
will not fall below a figure of £2000 per megawatt of installed capacity. Payments are to be index-linked and reviewed
as appropriate.
60 % of the funds are be used for Community projects and 40% for projects relating to Energy Efficiency.
The 40% for Energy Efficiency is to go towards a region-wide
fund.
Decisions on the spend of the 60% funds are to be made by the Community Councils concerned, subject to compliance
with agreed criteria and developers approval.
Reasons for the Protocol
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To ensure that as many communities as possible benefit from the
windfarm development.
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To create consistency in dealing with developers.
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To encourage windfarm developers to contribute Community Benefit.
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To keep the process separate from the Planning process.
Role of Solway Heritage
Solway Heritage is the approved Third party administrative body
for all the funds (but, in respect of the 40% ring-fenced for energy efficiency and conservation projects, they must ensure
close working with the Energy Agency to ensure maximisation of match funding etc). Solway Heritage is the point of contact
for developers and for Community Councillors to ensure that developers receive co-ordinated project proposals. Solway
Heritage has no decision-making role.
What sort of projects can be funded?
Any project of benefit to the community - but there are a few
areas for which funding cannot be used, eg for political purposes; to replace existing Council provision (but such facilities
could perhaps be enhanced); against the interests of the developer or windfarm landowner; for private benefit (but schemes
which individuals can access such as an education bursary may be acceptable); to promote a particular religion or exclusive
group.
For further information contact George MacQuarrie (Project Manager)
More on windfarms and the Community Benefit Protocol
As a source of renewable energy, windfarms bring many environmental
benefits and Solway Heritage has been involved in the related issue of ‘community benefit’.
Windfarm developers are often prepared to offer funding support
for local projects as part of the development. This is referred to as ‘community benefit’.
To ensure that communities are treated on some sort of equitable
basis and to create a workable system, Dumfries and Galloway Council has developed a community benefit protocol based on Community
Councils. This is entirely separate from the planning process. The need for a protocol is evident when one considers
that a single windfarm development may affect over twenty Community Council areas. Then, individual negotiation by the
developer with each Community Council is rarely practicable and discourages developers from aiming the potential benefit at
the wider audience.
Funding generated in this way will go to two schemes. 60%
will go to communities local to the development (within 15km) and 40% is for renewable energy projects across the region.
The protocol identifies Solway Heritage to administer and support
both schemes. However, there is much preparatory work to do to make the protocol effective and the Company is working
closely with the Council and some key developers on this.
Frequently Asked Questions
Q. Will my community receive Community Benefit from windfarms?
A. All windfarms that are currently in
operation pre-date the Council protocol and will have differing criteria for which communities benefit and specific levels
of benefit, if any. However, the vast majority of windfarms granted planning consent since July 2006 are anticipated
to comply with the Council protocol although non statutory. Accordingly communities within 15 Km of the windfarm boundary
will receive an equal share of 60% of the annual total benefit paid. All other communities will be able to bid for monies
specifically for energy efficiency and renewable energy projects from a region wide central fund formed from 40% of the annual
total benefit from all participating windfarms.
Q How much money can a Community Council expect to receive?
A. The exact level of funding is based
on the size of the windfarm. The protocol sets out a benchmark minimum annual payment of £2,000 per MW (installed capacity)
to be agreed with developers (Community Benefit is not mandatory). 60% of the total is then divided between the communities
within 15Km.
For example a 50 megawatt wind farm with 20 Community Council
areas within 15km would result in an annual total of £100,000. This would then be divided 60/40 with 40 % going to the
centralised fund earmarked for renewable energy projects. The remaining £60,000 is then divided between the 20 communities
giving each community £3,000 per annum.
Q. What can community benefit funds be spent on?
A. The precise terms and conditions may
vary for each wind farm developer but as a general guide a broad range of proposals to improve community life can be funded
by community benefit. These may be capital or revenue schemes or projects and may include the following areas:
The only exceptions are that funds should not be used to benefit
individuals, for political or religious purposes, to replace public sector funding, or to fund projects that are against the
interests of energy conservation, energy efficiency or the wind turbine operator.
See links section for links to websites for ideas, information
on projects done by other communities and case studies.
Generally speaking, the final decision as to whether a proposal
is eligible for funding rests with the wind farm developer.
Proposals should be submitted to Solway Heritage in the form
of Annual Plans or Multi Year Plans (for longer term projects) well in advance of the awarding of funds each year.
Q. Can projects be funded by additional funding sources?
A. Yes, match funding is most certainly
encouraged and Solway Heritage will endeavour to assist Community Councils in securing additional funding.
A very useful local contact will be your local Council of Voluntary
Services either in Annandale & Eskdale, Nithsdale, Stewartry, or Wigtownshire (see links below for contact details).
Assisting the voluntary sector in accessing funds is a key element of their role and, as well as having considerable experience
in making funding applications, all offices have access to the Funderfinder software which matches your community’s
needs with specific funders.
See links section below for websites of major funders.
Q. Can projects be funded over more than one year?
A. Yes, although the time period should
normally not exceed 3 years in the case of revenue projects. In the case of capital projects, funds can be banked for
up to three years to allow capital to accumulate.
Q. If I have an idea for a community project in my area
and would like to explore the possibility of funding it through the Community Benefit from Windfarms scheme who should I contact?
A. Generally speaking you should contact your
local Community Council. In some areas there is no active Community Council and in these cases responsibility for decisions
relating to the windfarm community benefit is usually passed to the village hall committee or a similar established group.
Information and contact details for Community Councils throughout Dumfries and Galloway can be found by clicking here.
LINKS
Ideas and case studies for projects:
Energy Saving Trust - A broad range of energy efficiency and renewable energy project case studies. Specifically the following link refers
to a highly relevant case study of a project to renovate a village hall.
Community Web - Carries details of a range of community projects and funding details.
Funding
Greenspace Scotland’s funding sources web page has details of funds largely connected (but not limited) to environment projects.
Community Webnet - variety of different Scottish Community projects with case studies and additional information on finding match funding.
Very useful list of funding sources.
Rural Community Gateway - information on funding and projects for rural communities and village halls. Look for funding resources.
The Big Lottery Fund covers a wide range funds for community projects under a variety of headings, including arts, sports and general community
funding.
Landfill Communities Fund (Landfill Tax Credit Scheme) – possible source of funding for communities within 10 miles of a landfill site.
Administered through Solway Heritage.
Scottish National Heritage offers grants to carry out projects that match its aims, to conserve and enhance Scotland’s natural heritage.
