The recent Scottish Government Chief Planner's letter clarifies that community benefits remain a voluntary arrangement that sits outside consenting systems for on-shore renewables.

Background

For many years there has been a practice for on-shore wind developments to contribute the equivalent of £5,000 per installed MW per year to a community benefits package.

That is promoted by the Scottish Government in their guidance, which also acknowledges:

"The provision of community benefits (including flexible packages of benefits) is not a material consideration, and has no bearing in the planning process."

Court decisions have also indicated that community benefit packages are not a relevant planning consideration in consenting decisions.

NPF4 policy 11

NPF4 policy 11 c) states that renewable energy developments will only be supported where they maximise net economic impact, including local and community socio-economic benefits.

That created some uncertainty about the planning status of community benefit packages.

Highland Council Social Value Charter

Policy 11 c) was referred to by The Highland Council in June 2024, when it decided to adopt the Social Value Charter for Renewables Investment.

A key plank of the Charter is payment of an additional £7,500 per MW to a strategic fund "to support and enable economic development, increase prosperity and achieve equity for communities across Scotland".

An analysis by Biggar Economics indicates that the Charter could reduce the number of new onshore wind projects by 80%.

Chief Planner letter

The Chief Planner's letter dated 20 September 2024 states:

"We recognise that there is some ongoing debate about the application of Policy 11(c) and on the role of community benefits alongside policy considerations on maximising economic impact. The Scottish Government is clear that community benefits are a well-established and integral part of onshore renewable energy developments in Scotland, supported by the Scottish Government’s Good Practice Principles. We are, however, clear that these are voluntary arrangements that sit independent of our planning and consenting systems, and NPF4 policy 11(c) does not alter this." 

Section 36 decisions

This confirmation from the Chief Planner is consistent with the approach which has been taken by the Scottish Ministers in section 36 decisions.

For example, in the Bunloinn decision, the Ministers rejected the proposal by The Highland Council for imposition of two conditions seeking to guarantee economic/ financial benefits.

Implications

The Chief Planner's letter is welcome clarification that community benefit packages are still not a planning consideration when granting planning permission/ section 36 consent, despite NPF4 policy 11(c).

For projects which are below the 50MW threshold for section 36 applications, the concern for developers is whether community benefit issues might still result in a refusal of planning permission, and the need for an appeal.

Contributor

Neil Collar

Partner