Scottish Government Consults on Community Benefits

GDT recently responded to the Scottish Government’s consultation on updating the good practice principles for community benefits from renewable developments.  

Our fund makes use of the 2019 Scottish Government Good Practice Principles for Community Benefits from Onshore Renewables. The recent consultation incorporates a much wider range of technologies, which is a reflection of the significant proliferation of projects and project types as we move towards the Net Zero targets. 

Our response was prepared with broad community consultation and engagement. We discussed our submission at our AGM and worked with local Community Action Plan Steering Group representatives to develop a response that the CAP SG members could also endorse in their own submission. Our response contained the following key points: 

1. In relation to which technologies should be included within the scope of the principles: Our broad approach to guide this was that if the project owner or developer of a technology is extracting value from a community, they should give something back. In terms of benchmarking payments, more transparency in how benchmark values are calculated would create a better, more informed discussion in relation to this. Regardless of the benchmark level, our view is that indexation of payments is essential. 

2. Community definition in relation to who should receive community benefits is important:  

   1. Communities should be defined based on existing cohesiveness and connections.

   2. A sub-regional approach (like GDT's model) offers balance between strategic ambition and local knowledge.

   3. Fund arrangements should be able to evolve over their 30+ year lifespan, including who benefits 

3. GDT sees value in the Principles placing emphasis on effective engagement:  

   1. Early and meaningful developer dialogue with communities is essential 

   2. Developers need to do better due diligence about communities before engagement 

   3. Communities should be treated as strategic partners, not obstacles or beneficiaries 

   4. Developers should coordinate engagement in areas with multiple developments 

4. GDT sees value in the Principles endorsing and supporting robust governance:  

   1. Based on our experience, we see significant value in the use of standalone legal entities to manage benefits  

   2. Development of robust Community Action Plans with community involvement to create impactful funds that unify communities 

   3. These also help establish clear objectives for short, medium and long-term fund utilisation 

   4. Based on our experience, using third-party administrators provides expertise and assurance, and reduces volunteer burden 

   5. Regular reviews (approximately every 5 years) should be built into all arrangements to allow for flexibility over time 

5. As an organisation managing multiple windfarm payments, we would advocate for standardisation and harmonisation:  

   1. When multiple developments affect an area, Developer approaches should be standardised where possible 

   2. Harmonised monitoring regimes between developers reduces the volunteer burden on fund decision makers 

   3. Harmonised application processes for community groups seeking funds reduces the volunteer burden on groups using the funds 

   4. Standardised base-line community benefit agreements would help community volunteers negotiating and agreeing these 

6. GDT sees value in the Principles ensuring arrangements take a long-term perspective:  

   1. Developers should approach these arrangements as long-term partnerships (30+ years) 

   2. Agreements should allow for flexible spending as community needs evolve over time 

   3. Communities should be able to roll over funds for larger projects 

   4. All payments should be index-linked 

   5. Consideration should be given to ensuring robust operational models (including revenue funding) for capital projects.  

      
      

If you would like to read our full submission please contact info@glenkenstrust.org.uk