Benefit Sharing Mechanisms in Renewable Energy

Benefit Sharing Mechanisms in Renewable Energy

Ron van Erck

DG ENERGY, European Commission

3 motivations for resistance

Case studies + analyses

23 examples of application of mechanisms in RES projects

Analyses of what mechanisms are effective to mitigate which resistance

Available on: www.reshare.nu

1. Community Funds developer provides funds to community for common

projects or lowering local taxes

2. Local (Co-)Ownership developer grants or offers shares in the project to

local community

3. Compensation developer compensates for possible damages

4. Benefits-in-kind developer creates improvements to the community

Benefit sharing mechanisms

5. Local Employment local employment in development, construction and

operation

6. Energy Price Reduction community may consume directly from the project

at discount or purchase energy at lower prices

7. Indirect Social Benefits other benefits to community such as prestige, eco-

tourism, knowledge etc.

Benefit sharing mechanisms

Discount on electricity prices

(Texel Energy)

Texel Energy Household

ProjectProject

Project

Membership Fee: €50

Discount on Electricity Price

ElectricityInvestment

Rättviks Wind Farm

Municipality Community Funds

Concert Renovation Public Facilities

Etc…Community

% of Electricity Sales

Application for financial support

Approval

Expenditure

Community Funds (O2, Sweden)

SIIF / Régie d'Electricité de Vendée

Burry Electricity

Cables

Improvements to bird habitat

Wind Farm

LPO

Annual Study

Fund Wind Farm and Improvements during Construction

Fund LPO Annual Study

Compensation measures (Bouin, France)

Focus on local needs

Look for match between BSM, project background and company skills

Communicate extensively and clearly, from an early stage

Financial BSM (co-ownership) can serve as financing inflow

Be careful with individualcompensation

Consistent message regarding the legitimacy of RES projects

An attractive financial climate for local participation mechanisms and direct use of RES energy

Limit administrative burden for common ownership structures

Priority grid connection

Rebel Group Advisory bv

Jan Coen van Elburgjancoen.vanelburg@rebelgroup.com

Renaat Jansenrenaat.jansen@rebelgroup.com

Elisabeth Schuurmanselisabeth.schuurmans@rebelgroup.com

www.reshare.nu

European Commission, DGENERGY

Ron.van-erck@ec.europa.eu

www.reshare.nu