Community Benefits and Shared Ownership for Low-carbon Infrastructure

Today my Department is publishing a working paper on community benefits and shared ownership of clean energy infrastructure.

Britain is moving at speed to build the clean home-grown energy we need to deliver energy security, lower bills, good jobs and growth, and to protect future generations. Every wind turbine, solar panel and piece of grid infrastructure we construct helps protect families, businesses and the public finances from future fossil fuel shocks.

The Government are clear that communities are providing a vital service to the country when they host this infrastructure in the national interest. That is why our manifesto committed to ensure that communities directly benefit from infrastructure projects they host. The working paper is the first step to exploring how we may bring about these changes.

We are seeking views on the proposed introduction of a mandatory community benefit scheme for low carbon energy infrastructure in Great Britain, which would require developers to contribute a set amount to a community fund. This fund could be spent on local projects, such as school clubs, biodiversity projects, local insulation improvements, community sports and transport, and other initiatives—with the process led by communities, who would work with developers to tailor spending to local priorities.

Community benefits are already delivered on a voluntary basis across Great Britain, including in the solar, offshore and onshore wind industries. However, this is not consistent across sectors or locations, which is why the Government are considering mandating the provision of community benefit funds. This would create a level playing field across all developers and communities, ensuring consistency and fairness in application, while facilitating greater community engagement.

In addition, we are seeking views on how the Government can support the expansion of shared ownership of renewables. This offers communities the opportunity to invest in renewables projects, such as onshore wind or solar farms, and share in any profits. Shared ownership agreements will enable some communities to reinvest profits back into local initiatives, such as fuel poverty support and energy efficiency schemes, while increasing community acceptance of new infrastructure. The Government also recognise the importance of majority-owned community energy projects, and that is why the Great British Energy community fund will provide financial support to community energy groups to help prepare local energy projects this financial year.

The paper seeks evidence to further our understanding of current shared ownership practices in Great Britain and whether a voluntary approach to shared ownership is sufficient.

The working paper will be open for responses for an eight-week period. We look forward to hearing from communities, industry and others as we take the next steps in our mission to make Britain a clean energy superpower.