Community benefits and shared ownership for low carbon energy infrastructure - A Consultation - Also Discussed by Highland Council Today

29th May 2025

Lord Hunt of Kings Heath, Minister of State (Minister for Energy, Security and Net Zero) made a statement on 21 May 2025.

My hon. Friend the Minister for Energy Security and Net Zero (Michael Shanks MP) made the following Statement today:

Today my department is publishing a working paper on community benefits and shared ownership of clean energy infrastructure.

Britain is moving at speed to build the clean homegrown energy we need to deliver energy security, lower bills, good jobs, growth and protect future generations. Every wind turbine, solar panel and piece of grid infrastructure we construct helps protect families, businesses and the public finances from future fossil fuel shocks.

The government is clear that communities are providing a vital service to the country when they host this infrastructure in the national interest. That is why our manifesto committed to ensure that communities directly benefit from infrastructure projects they host. The working paper is the first step to exploring how we may bring about these changes.

We are seeking views on the proposed introduction of a mandatory community benefit scheme for low carbon energy infrastructure in Great Britain, which would require developers to contribute a set amount to a community fund. This fund could be spent on local projects, such as school clubs, biodiversity projects, local insulation improvements, community sports and transport, and other initiatives - with the process led by communities, who would work with developers to tailor spending to local priorities.

Community benefits are already delivered on a voluntary basis across Great Britain, including in the solar, offshore and onshore wind industries. However, this is not consistent across sectors or locations, which is why the government is considering mandating the provision of community benefit funds. This would create a level playing field across all developers and communities - ensuring consistency and fairness in application, while facilitating greater community engagement.

In addition, we are seeking views on how the government can support the expansion of shared ownership of renewables. This offers communities the opportunity to invest in renewables projects, such as onshore wind or solar farms, and share in any profits. Shared ownership agreements will enable some communities to reinvest profits back into local initiatives, such as fuel poverty support and energy efficiency schemes, whilst increasing community acceptance of new infrastructure. The Government also recognises the importance of majority owned community energy projects, and that is why the GBE community fund will provide financial support to community energy groups to help prepare local energy projects this financial year.

The paper seeks evidence to further our understanding of current shared ownership practices in Great Britain and whether a voluntary approach to shared ownership is sufficient.

The working paper will be open for responses for an eight-week period. We look forward to hearing from communities, industry and others as we take the next steps in our mission to make Britain a clean energy superpower.

The Consultation

Part 1 of this working paper seeks views on the potential introduction of a mandatory community benefits scheme for low carbon energy infrastructure, including on the scope of such a scheme, and how a scheme should be administered and enforced.

Part 2 seeks views on how best to facilitate shared ownership of renewable energy generation infrastructure, including on whether a mandatory approach should be taken and consequently whether relevant powers in the Infrastructure Act 2015 should be exercised.

Audiences
We encourage responses from all stakeholders with an interest in the policy area. In particular, this working paper may be of interest to:

Energy infrastructure developers and investors
Wider energy industry and trade bodies
Community organisations
Environmental groups
Local authorities
Territorial extent
This policy will apply to Great Britain only (England, Scotland and Wales) but we encourage responses from any organisation or individual with experience or views on the matter.

How to respond
Respond online at: energygovuk.citizenspace.com/energy-infrastructure-planning/community-benefits-shared-ownership-en-infrastruct

or

Email: energy.infrastructure.benefits@energysecurity.gov.uk

or

Write to:

Community Benefits
Energy Infrastructure Planning Reform
Department for Energy Security and Net Zero
55 Whitehall
London
SW1A 2HP

When responding, please state whether you are responding as an individual or representing the views of an organisation.

Your response will be most useful if it is framed in direct response to the questions posed, though further comments and evidence are also welcome.

Read the full consultation HERE

Note
This was discussed on 29th May 2025 at a meeting of the Economy and Infrastructure committee of Highland Council.
See the paper entitled Highland Social Value Charter Update
at https://www.highland.gov.uk/download/meetings/id/85064/item_15_highland_social_value_charter_update

Watch and listen to the debate at item 15 HERE