Growing pains - A discussion paper on community benefits and energy infrastructure
Growing pains - A discussion paper on community benefits and energy infrastructure 2.89 MB
Our research revealed that stakeholders involved in community benefits, including industry, government, the charity sector and local groups, are all united in a common goal: to meet Net Zero.
However, although there are many examples of positive community benefits that have brought value to a region, not one stakeholder believed that the current system represents a fair approach for all three groups: national consumers, local consumers, and less advantaged consumers. This presents an opportunity to improve outcomes for all before infrastructure building ramps up to meet the 2030 and 2050 targets.
While community benefits were broadly seen as the ‘right thing to do’ for communities affected, for generation projects the biggest concern is about how they are delivered. The challenge for transmission projects, however, is a more fundamental question of fairness about who pays and who benefits.
Recommendations:
The use of community benefits for transmission infrastructure should be funded through general taxation as this is fairer. We believe placing yet more costs on electricity bills is not justified as it is implausible that community benefits will reduce the likelihood of legal challenges sufficiently, and are therefore unlikely to deliver a net benefit to bill payers.
A blended and flexible approach to the types of community benefits used and how communities are defined will be needed to distribute benefits fairly and equitably. There is unlikely to be a one-size fits all approach that works across all projects, geographies, and communities.
Shared ownership should be explored by generation developers, given its potential for long lasting benefits and ability to engage consumers in net zero. The UK government should also explore the role GB Energy could play in widening the potential scope and participation of these schemes.