Proposed onshore wind planning reform would see local communities that approve projects receive energy bill discounts

Onshore wind in the UK has been hindered by a lack of local support since planning reforms in 2015. A new system seeks to raise local backing of projects by offering energy bill discounts.

Published

May 24, 2023

Onshore wind reforms in the works after years of faltering progress

Experts say the planning system is a major obstacle to accelerating Britain's move away from fossil fuels and imported energy, and nowhere is the planning problem more pronounced than with onshore wind. “In England, there has been a de facto ban on onshore wind since 2015,” explains James Robottom, head of onshore wind at RenewableUK. The planning policy stipulates that any proposal for one or more wind turbines must meet two criteria: It must be located in an area identified by the local government as suitable for renewable projects, and it must be approved by the local community. While these requirements give communities more control over what is built in their area, they have slowed down the installation of onshore wind farms. Few local authorities in the UK have designated renewable energy development areas, just 11 per cent, according to a study by the University of the West of England. Mr Robottom said: “Any impact has to be fully assessed. That means one person in a local area can object and the whole wind farm goes.”.[i] As a result, the UK has seen a drastic decrease in planning applications for onshore wind farms.

As set out in the UK Energy Security Strategy (2022) and Powering Up Britain (2023), the UK Government has stated that future low-cost net-zero systems will mainly consist of self-generated clean energy such as wind and solar. To achieve this, by 2030 and beyond, there could be a significant increase in locally approved onshore wind power alongside other renewables such as solar and offshore wind.[iii] However, according to the latest BEIS Public Attitudes Tracker, whilst 79% of people support the use of onshore wind energy, the study also shows that this situation changes when asked about onshore wind power in the proximity of the respondent. According to the latest follow-up survey, support for onshore wind falls to 43% when placed in the context of local areas.[iv]

Building support from communities for onshore wind by ensuring community benefit

It is becoming more common for renewable energy projects to incorporate financial packages that make direct or in-kind payments to local communities, known as ‘community benefits’. These packages are separate and complement other direct economic benefits from construction and development, such as employment and related local infrastructure upgrades (such as improved road networks). Community benefit funds can provide access to long-term, reliable, and flexible funding to directly improve the economy and environment of local areas. Funds generated from onshore wind farms can be used in a variety of ways to finance a diversity of local projects and are negotiated directly with local communities. In Carno, Wales, for example, funds from the Tirgwynt wind farm are being used to build new school buildings. At the Kype Muir Wind Farm in Scotland, grants are being used to work with local authorities to boost local employment and skills. By providing benefits to the community, local areas can directly benefit from the hosting infrastructure.[v]

Tirgwynt landowners were instrumental in the development of the onshore wind project and continue to farm the land surrounding the turbines. They co-funded the development of this project and remain actively involved in its operation. Considering broad community involvement and the needs of the local Carno community, Belltown Power (the wind farm operator) agreed to pre-capitalise the Carno Community Benefit Fund, thereby providing funding to a new building for the Carno School, which saved the school from closure.[vi]

The new UK government consultation on brokering relationships between local communities and onshore wind developers sets to assess the value of making more direct financial contributions, for example, in the form of local electricity bill rebates. Examples of this are the issuance of vouchers that can be redeemed at energy supply companies, the conversion of local authority co-ownership in wind farms into discounted electricity tariffs, and innovative pricing schemes for local consumers of electricity from wind farms.[vii]

Whilst this consultation is a new development, its idea has been proven successful. Energy Supplier Octopus offers discounts to customers with wind turbines in their area. When their neighbourhood turbine is operating, customers enrolled in the Octopus programme receive 20% off their electricity bills, and in very windy conditions, they receive a 50% reduction. Ellis, a project engineer, has saved over £200 since January last year thanks to the programme. Ellis claims that the savings have made a significant difference in light of the nation's current cost-of-living problem, fuelled partly by skyrocketing energy expenses. "It's helping the environment, we're also in addition to that saving a bit of money," he says. "It's a no brainer.". Depending on their energy usage, Octopus claims that clients have saved an average of more than £100 annually through the programme, and some have saved as much as £400.[viii]

In Germany, researchers have identified an empirical link between positive attitudes towards wind turbines in their area and the presence of community co-ownership.[ix]

Whilst this proposed scheme focuses on the public sector, private enterprises seeking to capitalise on onsite power generation to reduce carbon emissions and energy bills could well benefit from the lessons learned in the power of engaging local communities and ensuring benefit trickles through in local areas.