Beyond Watts and Megawatts: Harnessing Socio-Economic Benefits in Renewable Energy Projects

The recent release of the new National Policy Statements for Energy (NPS) marks a significant stride in England's and Wales’s journey towards a sustainable future.[i] An update in the new NPS is the acknowledgment of solar panels as a viable renewable energy source. This recognition reflects the remarkable technological advancements and cost reductions in solar technology, making it an increasingly feasible option for energy generation compared to the 2011 release.

Jeremy Hunt’s recent budget announcement provides additional support for the nation's commitment to achieving net zero emissions, with nuclear energy anticipated to play a substantial role in the UK's energy mix.[ii] To bolster this stance, the government has taken proactive steps, including the acquisition of two nuclear sites from Hitachi - Wylfa in Anglesey and Oldbury-on-Severn in South Gloucestershire - signalling a renewed focus on nuclear provision.

While the environmental benefits of these initiatives are correctly emphasised, socio-economic benefits are often overlooked, yet are vital for gaining community buy in. The key part of socio-economic benefits is designing commitments to ensure they are tailored to the local community. What works in one area may not in another. Researching local policy and data, and actively engaging with local residents, ensures that communities have a voice in determining the local impact of renewable energy schemes. Such commitments include:

·???????? Local employment and the supply chain;

·???????? Education and skills development; and

·???????? Community benefits.

Local employment and the supply chain

Whilst it is not immediately obvious that renewable energy projects support socio-economic benefits due to the relatively small amount of ongoing operational jobs, there are material socio-economic impacts, predominantly through the construction period and through the wider impacts that can be enabled in related sectors. Developers can collaborate with communities to maximise the local impact of these projects, addressing issues such as unemployment and skills shortages.

There has been strong growth in employment in the renewable energy sector with jobs growing four times faster than the overall UK employment market.[iii] With the UK government’s renewed commitment to renewable energy and the goal for the UK to achieve its net zero target, a report has found that 120,000 jobs in the green energy industry need to be filled by 2030 to help develop projects that can cut greenhouse gas emissions to near zero.[iv] This is more than three and a half times current employment in the industry. Local authorities that are encouraging renewable energy developments in an area should look to upskill its residents to ensure that residents can benefit from upcoming opportunities.

Without intervention, local employment opportunities may be limited due to the high-skilled nature of the sector. Therefore, conducting research during the planning stage to assess local skills levels is essential. This analysis provides valuable insight for both the client and the local authority, offering an understanding of the potential workforce available and how many local jobs the project will likely generate.

Supply chain opportunities present another avenue for renewable energy projects to stimulate growth in the local area. By establishing connections with local businesses and suppliers – through mechanisms like “meet the buyer” sessions, maintaining updated supplier lists, and actively supporting local SMEs in procurement processes – renewable energy initiatives can play a crucial role in the expansion of regional economies. These projects often require various goods and services, ranging from construction materials to specialised equipment, which can be sourced locally, thereby stimulating economic activity and bolstering local industries.

Education and skills development

Investing in education and skills development initiatives such as STEM learning and apprenticeships offers a dual benefit. Not only does it create a pipeline of talent to support renewable energy projects, but it also enhances the overall skill level and employability of community members. Vocational training programmes and academic partnerships can provide individuals with the tools they need to succeed in a rapidly evolving industry.

Emphasis should be placed on ensuring that acquired skills from the commitments above are transferable. This ensures that individuals are equipped not only for the current project but also for future opportunities within the renewable energy sector. By leaving a lasting legacy of skills development, projects can continue to benefit the community long after completion.

Community benefits

Community benefits are voluntary packages designed to support and enhance local communities, offering long-term advantages.[v] Currently, these benefits vary depending on the scale and nature of the renewable energy scheme, but they are generally understood to be additional to the economic, social, and environmental benefits of development. The National Infrastructure Commission have emphasised the need to establish a framework that offers a range of potential benefits for communities, while allowing flexibility for communities to prioritise their preferences.[vi]

While awaiting government guidance on this matter, it is crucial for applicants to adhere to best practices. Volterra brings valuable experience in developing community benefit packages and understands what constitutes best practice in this area.

Community benefits are a way to ensure the scheme aligns with local priorities. Therefore, establishing a framework is essential to outline how funds will be allocated and governed. Regardless of the framework, it is imperative to have a thorough understanding of local needs.? Each community has its own challenges and aspirations, requiring a more specialised approach. ?Maintaining flexibility within the framework is crucial to ensure that it evolves with the needs of the community over the length of the project. Moreover, consistent monitoring and management are necessary to ensure the effective use of funds.

As we navigate the complexities of renewable energy planning, it is imperative to recognise that the socio-economic dimensions of these projects can be as crucial as their environmental outcomes. By embracing an approach that prioritises the local community, we can unlock the full potential of renewable energy as a catalyst for positive socio-economic change. Successful renewable energy projects hinge on community support and engagement. By involving local stakeholders in the planning process, developers can build trust, address concerns, and foster a sense of ownership among residents.

If you require socio-economic support, please feel free to contact us:

Phone: 020 4529 1736 Email: [email protected]

[i] Department for Energy Security and Net Zero, 2024. National Policy Statements for energy infrastructure

[ii] Carbon Brief, 2024. UK spring budget 2024: Key climate and energy announcements

[iii] Alex Lawson, 2022. Renewable energy jobs growing four times faster than rest of UK market

[iv] The renewable energy hub, 2023. UK Needs to Create 120,000 new Green Energy jobs to Meet Targets by 2030; ONS, 2023. Experimental estimates of green jobs, UK: 2015 to 2022

[v] Local Energy Scotland, (N/A). Community benefits

[vi] NIC, 2023. Stronger coordination of environment and community benefit needed to get planning timescales back on track