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 [email protected]
Renaat [email protected]
Elisabeth [email protected]
www.reshare.nu
European Commission, DGENERGY
www.reshare.nu
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