Debate on community benefits from renewable energy projects

Community benefits packages are financial payments made by developers of energy infrastructure, such as wind farms or electricity lines, made to local communities that will be impacted by the development. They are paid on a voluntary basis in the UK, with guidance provided by devolved administrations.

In England, the previous government consulted on plans to take ownership of and update the Community Benefits Protocol for England, which was developed by the trade body RenewableUK, and covered onshore wind farms. The existing protocol recommended developers should offer packages or in-kind benefits of £5,000 per megawatt of installed capacity, per year, for the operational lifetime of the project. The government also carried out a consultation on community benefits for electricity transmission network infrastructure, which closed in summer 2023. This proposed a voluntary support package, underpinned by government guidance, for electricity network infrastructure projects, including any associated with offshore wind farms.

The Labour government has said, in answer to a Parliamentary question in September 2024 (UIN 2077), that it will shortly publish updated community benefits guidance for onshore wind in England.

In Scotland, the Scottish Government have good practice principles for community benefits from onshore renewable wind developments, which promote similar benefits to England of £5,000 per year for every installed megawatt of generating capacity, index linked to inflation for the lifetime of a project.

Similar voluntary arrangements for onshore wind community benefits are also in place in Wales and Northern Ireland. In addition, the Welsh Government has a policy for all new energy projects to include an element of shared ownership with the community.