Renewable energy technologies and community benefits

Community benefits are additional benefits offered by renewable energy developers to support communities. Examples include community benefit funds and in-kind benefits provided by developers such as investment in local infrastructure improvements or funding for education programmes. Community benefits currently operate on a voluntary basis in Scotland.

The Scottish Government has published Good Practice Principles for onshore and offshore energy in Scotland, which are currently under review. Within the context of that overarching review, the primary aims of this research were: 

• To help identify any necessary adjustments to Scotland’s current voluntary community benefits approach for onshore and offshore to better support communities and industry as part of a just transition.
• To understand how different renewable energy technologies affect the provision of community benefits. 
• To understand how mandating community benefits could work in practice for onshore renewable energy technologies.

The research incorporated an evidence review, qualitative interviews and the design and testing of a socio-economic analysis framework.

Findings

• No obvious adjustments need to be made to Scotland’s current community benefit approach.
• Financial aspects of a renewable energy project (costs, revenue and financial viability) are key factors impacting community benefit levels. Projects with higher amounts of revenue, and more robust and predictable financial returns are better positioned to offer significant community benefits.
• It is easier to offer community benefits for projects involving more established technologies like onshore wind, compared to newer technologies like hydrogen.
• The literature reviewed did not allow for a satisfactory comparative analysis of the in-practice impacts of mandatory versus voluntary approaches.
• Further development and more complete data is required to make a functional framework that could inform policy decisions on the appropriate levels of community benefit for different renewable energy technologies.

For further information, please read the report.

If you require the report in an alternative format, such as a Word document, please contact info@climatexchange.org.uk or 0131 651 4783.