GETTING TO ZERO
Onward’s proposed Green Energy Covenant is an important contribution to the growing campaign to lift the ban on onshore wind. We need to streamline the planning process and bring down barriers to growth. This report provides a way to build an enduring political consensus to do so.
The Government’s target for a net zero power system by 2035 requires doubling onshore wind, quintupling solar power, and carrying out large grid infrastructure upgrades. Since Putin’s invasion of Ukraine, the move away from fossil fuels has become even more urgent as Ministers seek to increase energy security and reduce the UK’s exposure to volatile gas prices.
But local opposition often stands in the way of development. Campaigns against development can put pressure on councillors and MPs to intervene against projects or push the Government to enact restrictive policy. There has been a de facto ban in place on new onshore wind since 2016 following a campaign by Conservative MPs.
This is despite the fact that renewable energy is popular. Rural voters are in favour of renewable energy even if projects are nearby. 57% would support an onshore wind farm three miles from their home, and just 17% oppose it. But many people would prefer developments to take place elsewhere.
To convert passive support for renewables into active backing, so that it counteracts the small minorities that often dominate debates on local development, tangible benefits must be delivered to communities. In fact, our polling found that community benefits are necessary for support to outweigh opposition to local renewable energy projects.
Although the UK and Scottish governments provide some guidance, there is currently a patchwork of community benefits programmes across the UK that have been established voluntarily by developers and communities. This approach will not be sufficient to deliver the scale of infrastructure required to enhance energy security, reduce energy prices, and reach the UK’s net zero targets.
The Government should overturn the ban on onshore wind, mandate community benefits for all renewable energy projects and grid infrastructure, and introduce a new “Green Energy Covenant” to provide support and guidance to communities.
The Government should establish a new “Green Energy Covenant” to ensure nationally beneficial developments are tied directly to local investment, and give power to communities to decide what community benefits are invested in.
The Green Energy Covenant is based on three principles:
To establish this Green Energy Covenant, the Government should take three steps.
Onshore renewables payment rates
2.1 The Government should set the default rate at £2 per megawatt hour.
2.2 The payments should be annual and based on the average load factor of the technology to ensure revenue predictability and stability.
Transmission infrastructure payment rates
2.3 The Government should set the default rate for overhead power lines at £74,000 per mile – £165,000 per mile, depending on size.
2.4 The Government should set the default rate for underground power lines at 3% of the capital cost for underground lines.
2.5 The Government should set the default rate for substations at £46,000 – £103,000 per asset, depending on size.
Engagement guidance
2.6 Developers should engage with communities within three miles of the asset.
2.7 Developers should convene local boards of elected representatives and community leaders to decide how to invest the community benefits package.
2.8 The Government should introduce flexibility into the planning system to allow communities to influence route designs.
2.9 The local board would establish a ‘community action plan’ to set out how the money is to be invested, which can deviate from the default package if the local board decides.
The Government should establish a new “Green Energy Covenant” to ensure nationally beneficial developments are tied directly to local investment, and give power to communities to decide what community benefits are invested in.
The Green Energy Covenant is based on three principles:
To establish this Green Energy Covenant, the Government should take three steps.
Onshore renewables payment rates
2.1 The Government should set the default rate at £2 per megawatt hour.
2.2 The payments should be annual and based on the average load factor of the technology to ensure revenue predictability and stability.
Transmission infrastructure payment rates
2.3 The Government should set the default rate for overhead power lines at £74,000 per mile – £165,000 per mile, depending on size.
2.4 The Government should set the default rate for underground power lines at 3% of the capital cost for underground lines.
2.5 The Government should set the default rate for substations at £46,000 – £103,000 per asset, depending on size.
Engagement guidance
2.6 Developers should engage with communities within three miles of the asset.
2.7 Developers should convene local boards of elected representatives and community leaders to decide how to invest the community benefits package.
2.8 The Government should introduce flexibility into the planning system to allow communities to influence route designs.
2.9 The local board would establish a ‘community action plan’ to set out how the money is to be invested, which can deviate from the default package if the local board decides.
This report is produced as part of our Getting to Zero research programme.
Established a year before COP26, Onward’s Getting to Zero programme is dedicated to developing practical and politically possible ways for the UK to meet its net zero ambitions and lead the world in decarbonisation.
Your contribution will help fund cutting edge research to make the country a better place.
