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Just transition
Clean power

Delivering local benefit from offshore renewables: working towards a new model for community benefit and local ownership

Date
December 7, 2022

Table Contents

At a glance

Allocating a proportion of revenues to local communities has been a key feature of renewable developments, particularly onshore wind. This has provided new funds for communities to spend on local social, environmental and economic initiatives, including addressing fuel poverty and supporting green jobs. Decades of experience have shown that communities can benefit from, or in some cases directly own a part of new renewable developments, supporting local areas and a wider just transition.

Offshore industries such as oil and gas have primarily benefitted local communities through job creation and increased income for local businesses. Offshore renewable projects have also offered these benefits, while contributing to the delivery of  a secure energy system that meets our net zero targets.

Through this research we have spoken to 20 different stakeholders from developers to academia, government to communities – and found that there is a broad consensus that communities have a key part to play in the transition to net zero. Thanks to our sponsor Ocean Winds for supporting this piece of work.

It is clear that we need to answer the question of what is both beneficial and feasible when we apply the principle of community benefit and local ownership to offshore renewable projects. These offshore projects are much larger and further from individual communities compared to their onshore wind cousins. This paper explores what might be needed to evolve local benefit approaches for offshore renewables, to maximise the value on offer, develop better support among communities, and support a just transition that benefits people across the UK.

Our research has shown that there is a lot of interest in this topic, but it is complex, and there are lots of different opinions. More clarity on the relative importance of local benefits and the different models by which it can delivered would be beneficial for all involved. It should also be recognised that it is important for renewable developers to focus on what they are good at – developing and delivering projects and mobilising finance - to help the UK achieve net zero, and achieve it affordably and fast.

The objective of this study is to feed into discussions and decisions around local ownership and community benefit funding in the offshore planning and leasing process, to help build clarity as the sector rapidly grows.

Key takeaways

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