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Benefit Sharing Mechanisms in Renewable Energy Ron van Erck DG ENERGY, European Commission
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
Benefit sharing mechanisms • Community Funds • developer provides funds to community for common projects or lowering local taxes • Local (Co-)Ownership • developer grants or offers shares in the project to local community • Compensation • developer compensates for possible damages • Benefits-in-kind • developer creates improvements to the community
Benefit sharing mechanisms • Local Employment • local employment in development, construction and operation • Energy Price Reduction • community may consume directly from the project at discount or purchase energy at lower prices • Indirect Social Benefits • other benefits to community such as prestige, eco-tourism, knowledge etc.
Membership Fee: €50 Texel Energy Household Discount on Electricity Price Investment Electricity Project Project Project Discount on electricity prices (Texel Energy)
Rättviks Wind Farm % of Electricity Sales Community Funds Municipality Approval Application for financial support Expenditure Concert Renovation Public Facilities Etc… Community Community Funds (O2, Sweden)
Compensation measures (Bouin, France) Fund LPO Annual Study SIIF / Régie d'Electricité de Vendée LPO Fund Wind Farm and Improvements during Construction WindFarm AnnualStudy Burry Electricity Cables Improvements to bird habitat
Conclusion ( Developers ) • 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
Conclusion (Policy Makers) • 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
www.reshare.nu Rebel Group Advisory bv Jan Coen van Elburg email@example.com Renaat Jansen firstname.lastname@example.org Elisabeth Schuurmans email@example.com www.reshare.nu European Commission, DGENERGY Ron.firstname.lastname@example.org