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Benefit Sharing Mechanisms in Renewable Energy

Benefit Sharing Mechanisms in Renewable Energy. Ron van Erck DG ENERGY, European Commission. 3 motivations for resistance. Case studies + analyses. 23 examples of application of mechanisms in RES projects Analyses of what mechanisms are effective to mitigate which resistance

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Benefit Sharing Mechanisms in Renewable Energy

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  1. Benefit Sharing Mechanisms in Renewable Energy Ron van Erck DG ENERGY, European Commission

  2. 3 motivations for resistance

  3. Case studies + analyses • 23 examples of application of mechanisms in RES projects • Analyses of what mechanisms are effective to mitigate which resistance • Available on: www.reshare.nu

  4. Benefit sharing mechanisms • Community Funds • developer provides funds to community for common projects or lowering local taxes • Local (Co-)Ownership • developer grants or offers shares in the project to local community • Compensation • developer compensates for possible damages • Benefits-in-kind • developer creates improvements to the community

  5. Benefit sharing mechanisms • Local Employment • local employment in development, construction and operation • Energy Price Reduction • community may consume directly from the project at discount or purchase energy at lower prices • Indirect Social Benefits • other benefits to community such as prestige, eco-tourism, knowledge etc.

  6. Membership Fee: €50 Texel Energy Household Discount on Electricity Price Investment Electricity Project Project Project Discount on electricity prices (Texel Energy)

  7. Rättviks Wind Farm % of Electricity Sales Community Funds Municipality Approval Application for financial support Expenditure Concert Renovation Public Facilities Etc… Community Community Funds (O2, Sweden)

  8. Compensation measures (Bouin, France) Fund LPO Annual Study SIIF / Régie d'Electricité de Vendée LPO Fund Wind Farm and Improvements during Construction WindFarm AnnualStudy Burry Electricity Cables Improvements to bird habitat

  9. Conclusion ( Developers ) • Focus on local needs • Look for match between BSM, project background and company skills • Communicate extensively and clearly, from an early stage • Financial BSM (co-ownership) can serve as financing inflow • Be careful with individualcompensation

  10. Conclusion (Policy Makers) • Consistent message regarding the legitimacy of RES projects • An attractive financial climate for local participation mechanisms and direct use of RES energy • Limit administrative burden for common ownership structures • Priority grid connection

  11. www.reshare.nu Rebel Group Advisory bv Jan Coen van Elburg jancoen.vanelburg@rebelgroup.com Renaat Jansen renaat.jansen@rebelgroup.com Elisabeth Schuurmans elisabeth.schuurmans@rebelgroup.com www.reshare.nu European Commission, DGENERGY Ron.van-erck@ec.europa.eu

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