I
believe that the earmarking of a modest sum of money for
feasibility/planning costs for community schemes that are in their
gestation stages, perhaps through the Clear Skies mechanism, could ensure
that several flagship schemes could be organised in the 2 to 6 MW range of
size. Previously Clear Skies has been limited to very small projects, but
there is a strong case that community participation through locally
inspired and locally owned ethical investment projects could have a very
positive effect on the planning environment for wind power in the UK. I
believe it should be possible to administer such a drive effectively, by
defining community schemes as ones where it was aimed that majority of
equity would be owned by a large number of investors who reside in one
particular county. The schemes could be organised by co-operatives limited by guarantee or by other community organisations.
Community
share offers have an advantage under the Renewable Obligation since they
can run on annual contracts from electricity suppliers, thus maximising
returns from ROCs in a way that is usually not
possible for conventional schemes. Conventional schemes have to rely on
long term contracts from electricity suppliers to satisfy bankers. Indeed
the forthcoming NFPA auctions of ROCs and
other elements of renewable generation, will
enhance these market opportunities for community share ownership. Locally
inspired schemes have the potential to be low cost since they do not
involve all of the overheads associated with conventional developers. They
have the possibility of being established on lower wind speed sites
because of the advantages of the way they are geared financially. Such
schemes would clearly represent a valuable addition to renewable energy
capacity.
However,
there exists a large knowledge gap. A small number of activists and
farmers such as Adam Twine in Oxfordshire, know
about these possibilities, but while there is considerable general
interest in the notion of community wind power schemes, knowledge about
how to organise them is poor. Yet community wind power can only build up
its potential if there is knowledge dissemination through real projects. A
key aim of funding commercially sized community wind power projects should
be to develop community knowledge about organising the projects.
Going
on the basis of the existing examples, it may be that grants of the order
of £40,000 per project may be sufficient to bring them through planning
with windspeed monitoring. One million pounds
worth of funding per year could generate 25 projects. If they all came to
fruition, with an average capacity of 4 MW this would represent 100 MW
of capacity per year. This would compare very favourably indeed with the
grant support for Round 1 offshore wind power which, at 10 per cent of
capital costs, has means a ratio of roughly £10 million for every 100MW
of offshore wind power capacity.
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