Move to formalise cut price wind farm tariffs

Local communities willing to host onshore wind developments will be offered cheaper tariffs, under proposals put out by government.

While admitting that the current planning regime for onshore wind is “overly rigid”, the government has set out a series of measures to incentivise communities to welcome onshore wind proposals.

It follows Octopus Energy’s Fan Club initiative which offers cut price electricity bills for customers within post codes that have agreed to host its wind turbines. The company has identified up to 2.3GW of generation by the end of this decade through its Winder platform that matches communities that want to host turbines with grid capacity and data on wind speed and strength.

The government is proposing to add emerging community benefits, like such energy bill discounts, to the range of reward schemes that onshore wind developers currently offer host communities.

A consultation paper, issued on Thursday (11 May) by the Department for Energy Security and Net Zero (DESNZ), proposes to achieve this by updating RenewableUK’s community benefits protocol for onshore wind in England.

Under the protocol, last updated in 2013, onshore wind developers in England commit to provide community benefits of £5,000 per MW of installed capacity, or equivalent in-kind benefits, directly to host communities.

These funds can be used to finance whatever the host community deems appropriate and necessary for their areas, including village halls, recreational facilities or equipment for local schools.

The consultation paper says that the current system, under which developers pay annually into a trust that communities then have to apply to, can be “burdensome and time consuming, causing delays or inactivity”.

Examples of more direct financial contributions that the consultation paper could be offered include issuing vouchers that can be used with the energy supplier, translating community co-ownership shares in wind farms into discounts on bills or tariffs that reduce the cost of electricity for local consumers when the wind is blowing.

The consultation also proposes that best practice principles of engagement, currently published by the government, are embedded into planning guidance.

These moves are being put forward alongside revisions to national planning guidance for onshore wind, which industry critics have criticised on the grounds that they will not make it easier to secure consent for projects.

In the consultation paper, the government acknowledges that its existing planning rules for onshore wind has resulted in an “overly rigid system” that prevents councils from responding to local communities that wish to host such projects.

Consultation on revisions to the National Planning Policy Framework closed on 2 March.

According to figures published by RenewableUK earlier this year, just two turbines were developed last year across the whole of England, which has a tougher onshore wind planning regime than the UK’s other constituent nations.

RenewableUK’s head of onshore wind James Robottom said: “We’re pleased that the government is consulting on the wide range of benefits which onshore wind can offer to local communities in England. We have a long track record of working closely with communities to ensure that they decide what form these benefits will take, depending on the needs and priorities of local people.

“Building strong relationships with local communities as early as possible is the best way to establish successful partnerships which last for decades. Alongside much-needed planning reforms, this consultation provides an opportunity to increase the amount of cheap clean power we can generate for consumers as well as strengthening our nation’s energy security.”

Graham Stuart, minister of state for energy security and net zero said: “Onshore wind is a vital part of our plans to deliver cheaper, cleaner, and more secure homegrown energy.

“It is right that new developments have the support of host communities, and that local people benefit directly from it, such as through either a discount on their energy bills or other significant community benefits.

“Our proposals will ensure developers and local residents can work together more efficiently to maximise community benefits for supportive communities while delivering the clean and secure energy the country needs.”