Wind farm business scheme will help communities profit

Louise Gray, Environment Correspondent
Last Updated: 3:01pm BST 09/10/2008

Farmers have set up a unique new business scheme in the UK to enable land owners and communities to benefit from wind farms.

At the moment multinational companies develop most wind farms. Communities are offered a share in the development or a "goodwill payment" from the profits.

The new scheme will see local residents benefit for wind turbines
This has led to the accusation that local communities do not get a fair amount of the profit generated.Now farmers are fighting back by asking landowners and communities to invest in a new business, Wingen, that will ensure the local people profit.
The company will be owned by individuals in the rural sector, including many people with potential sites. Therefore when a wind farm is developed they will directly profit rather than just receiving a small share.
It is the first time such a business has ben set up in the UK, although similar schemes are common in Denmark where wind farms are hugely successful and generate almost 20 per cent of the country's electricity.
Electricity generation from wind is already a growing industry because of the rising cost of fossil fuels and generous government subsidies to encourage renewables.

If the scheme is successful it could lead to a surge in the number of on shore wind farms as planning permission will be easier to get when communities are behind the development.
Maitland Mackie, the Scottish farmer behind Wingen, said the company would ensure rural communities profit from the growth in the wind sector.
He said 250 people have expressed interest in the scheme. They would initially be asked to put forward a minimum of £1,000 towards start up and potential sites for development.
He added: "The overriding objective of Wingen is to secure ownership of most of the onshore wind power generation for individuals and communities in the rural sector, so ensuring that the lions share of the financial returns stays there. One key strength of the project is derived from holders of land seconding potential wind sites to Wingen."
Mr Mackie, who set up the successful business Mackie's icecream, said developers are already getting nervous about the prospect of communities taking the inititative.
"If we the rural sector own the company we get the bulk of the returns rather than the litle bit around the edges. That is why I am anxious that landowners do not commit [potential sites] in the meantime until we can see what we can do."
But the British Wind and Energy Association welcomed the competition.
A spokesman said: "As a trade association we welcome opportunities to deploy renewable energy and this business model could prove to be interesting."
But Dr John Constable, research director of the Renewable Energy Foundation, said communities will not necessarily profit.
"People have to realise wind is a very risky businesss," he said. "Big companies can develop a wind farm in low wind areas for PR and take the losses but economics are critical for local people.
"The thing about wind is the economics are very senstive to the availability of resource. People have to realise it is not an easy thing to do and they have to investigate the sites very, very carefully."
The Campaign for Rural England said whoever owns a wind farm must ensure it is sensitive to the environment.
A spokesman said: "CPRE sees a lot of potential benefit in local co-ownership. Regardless of who owns a wind farm, though, it is important that they go in the right place, as they can have impacts on the appearance of the countryside way beyond a particular community.
"Where community schemes happen, we would also want to see farmers reinvest a fair proportion of their profits in other technologies, particularly anaerobic digesters to produce heat or electricity from slurry."