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Community Benefits and Shared Ownership for Low Carbon Energy Infrastructure consultation: a step in the right direction

The UK Government has released its working paper on Community Benefits and Shared Ownership for Low Carbon Energy Infrastructure[1]. Below, Director, Strategic Communications and Net Zero Infrastructure Lead, Emily Bell and Senior Consultant, Economics, Beth Parsons explore the options presented in the consultation, the strengths of the proposed approaches and where further consideration needs to be given.

The proposal seeks to drive forward the Government’s Clean Energy Superpower Mission, critical for economic growth, energy security and reducing electricity bills, whilst bringing local benefits. Closing for comments on 16 July, the consultation seeks insights into the Community Benefit Fund process, and the potential for it to become mandatory, together with how best to facilitate Shared Ownership. Both proposals, if implemented, would require primary legislation so would not come into force until end of 2027 earliest.

The options being considered include a fund contribution based on generating capacity and actual generation output. Community Benefit Funds are currently set up voluntarily by developers, with varying levels of guidance in place in Wales and Scotland. By introducing this legislation, the Government intends that this would:

  • Recognise the vital role of local communities who live closest to the development.
  • Help to increase and widen community acceptability of energy infrastructure by providing tangible local investment and benefit.
  • Support community engagement through the planning process whilst facilitating lasting relationships, developing an understanding of the local context and need to create lasting positive impact.
  • Bring certainty and consistency of process, providing clarity in expectations for developers and communities on the level of support to be provided over a defined period.
  • Create a level playing field, setting out a standardised approach for the calculation of benefits, which is clear and transparent, but the spending of which can be tailored and made bespoke to the local context.

Strengths of the proposals

Having supported a range of clients on developing strategies to bring best benefits to local communities, including Community Benefit Funds and ownership models, and assessment of such approaches, we think the proposals do the following well:

  • Transparency for what good looks like would support clearer communication and set expectations locally on level of contribution.
  • It is encouraging that the consultation is not prescriptive on what this should fund, rather that it should be guided by local insights and understanding of key issues. This means that Community Benefit Funds could be tailored to the local context, in response to identified need at the time of delivery and administered by those who undertake them best.
  • Increasingly, local authorities are asking developers to demonstrate that communities feel as if they are part of the decision making. Community Benefit Funds allow for communities to feel like they are involved in an open and transparent process, helping to shape how this funding is distributed. 
  • A Community Benefit Fund can provide a more level, inclusive playing field to access benefits, with no expectation to contribute to maintenance payments, or raise funding for shares, typical of other partial community ownership models.

Areas for further consideration

While the basis of the proposals are strong, there are some themes that still need to be considered:

  • The working paper sets out that the calculation of benefit is dependent on either the installed generating capacity (£/MW) or actual generation output (£/MWh). Whilst a standardised approach is beneficial in some respects, the level of support provided should also take account of the local context, dependent on geography, or how acute the need is.
  • The Community Benefit Funds should not seek to replicate existing provision by key local stakeholders. Developers should be encouraged to continue to engage and consult with existing social value delivery partners, to maximise impact by providing additional support to address local need.
  • Whether developers will be required to report on the impact that this funding has had, which can often be far reaching, less tangible, and difficult to define in numbers. What does good look like when it comes to monitoring, measuring and reporting?

We look forward to further detail and clarity following the consultation. However, this is welcomed as a positive step forward for the industry, in recognition of the need for communities to continue to benefit as much as possible from the transition towards more sustainable energy generation.

If you'd like support in submitting representations to the consultation or to discuss how we can help you understand the development of your Community Benefit Fund offer, please contact Beth Parsons or Emily Bell.

Find out more about our social value work here and our Net Zero Infrastructure offer here.

5 June 2025

[1] Community benefits and shared ownership for low carbon energy infrastructure