Working with local communities to deliver meaningful benefits from wind farm projects around the UK

1. Working with local communities to deliver meaningful benefits from wind farm projects around the UK Katy Woodington RWE npower renewables

2. Community benefits at npower renewables • In the UK community benefit packages are offered at all onshore and offshore wind farm sites operated by RWE npower renewables and some hydro sites • There are a number of existing models, which have been negotiated locally to meet the specific needs of the local area • The composition of each package varies subject to the size and type of project and also depends on the size, type and geographical make up of local communities

3. Why do we offer community benefits • Because developing, building and operating a wind farm or hydro plant is a long-term commitment to an area • Because it allows the local community to share in the benefits of generating renewable energy • Because it helps us to develop a positive relationship with the local community • Because it helps to fulfil our corporate social responsibility commitment • Because it is expected by the communities within which we work and by national and local government • Because of limited opportunities for other types of local benefit compared to other European countries

4. North Hoyle Offshore Wind Farm

5. Community Fund Structure • An annual fund of £60,000 is index linked each year in line with inflation, and will be available throughout the operational life of the North Hoyle Wind Farm • Two local Community Partnerships administer the funding for the benefit of the Prestatyn and Rhyl areas. Decisions about allocating the fund are made by representatives of the local community for the local community • In 2008 the total fund was worth £68,642 • In 2008, the fund provided financial support to 40 local groups and organisations working in the local community

6. Setting the level of community benefits • Community Benefits packages are funded from a wind farm’s profits • There are many factors affecting the likely profitability of a wind farm, which in turn affect the level of community benefit we are able to offer : – - Site location issues such as average wind speed, ground conditions and grid connection options/costs - Development, construction and operation issues such as Public Inquiry costs, equipment procurement costs, interest rates - Income related issues such as price of electricity, wind turbine performance and reliability, and actual wind resource

7. Defining the geographical area of benefit • We consider the proximity of communities to the development • We consider the level of disruption likely to be felt by construction activity and traffic • We consider the visual impact of the development • We consider how the area is used for work and recreation by the wider community • We consider the size of the local population

8. Bears Down Wind Farm Community Fund Science teacher, Luke Martin, at Poltair School said “The Green Team enables our students to actually put their ideas to the test on ways to reduce the school’s Carbon Footprint and make our school more sustainable, the students are doing a brilliant job and have already introduced a number of projects that are making a real difference”.

9. Carno Wind Farm Community Fund Elizabeth Jones, Chairperson of Carno First Responders, said: “The grant from the Carno Wind Farm Community Fund has been invaluable in helping us purchase the equipment we need to carry out our work, it will be with us whenever needed and could help us to save lives in our community.”

10. Farr Wind Farm community fund David Henderson, a member of the Farr Hall Management Committee, said: “We are delighted with the substantial contribution from the Strathnain Community Benefit Fund, not only has it helped to make the project possible but it has also enabled us to make sure it is a sustainable development.”

11. Community benefits and the planning system • Community benefit packages are additional voluntary benefits • The offer of a community benefit package is not a material consideration of any planning decision • There is a strict principle in the UK planning system that a decision about a particular planning proposal should be based on planning issues only • In delivering community benefits packages npower renewables works to best practice guidelines • We always maintain clear separation from the planning process • Where money or measures are offered to mitigate for impacts of a development these would be secured separately through a section 106 agreement

12. Working with Community Foundations • Historically RWE npower renewables have worked directly with parish and community councils • Community Foundations – independent third party option for administering a fund, with specialist grant-making skills • Appropriate structure to receive funding – registered with the Charity Commission • Carry out all administrative tasks including advertising the availability of a fund, sending out application forms, tabling applications, monitoring awards and reporting to npower renewables • Convene a Grants Panel of local representatives to make decisions of allocation of funding for their community • Able to signpost applicants to additional funding opportunities • Clear, fair and transparent process

13. Our biggest challenges • Balancing the expectations of the local community with wind farm finances • Identifying the needs of the local community • Working with a wide variety of local stakeholders • Helping communities get best value from their community benefit package • Fulfilling the requirements of national and local policy • Retaining flexibility to support innovative ideas which will make a real long term sustainable difference to the local community

14. Contact • Katy Woodington • 01492 660811 • Katy.woodington@rwe.com