People in Denmark living close to a new wind turbine or solar farm receive a yearly payment. In most cases, the amount corresponds to the value of the output of 6.5 kilowatts from the new renewable generator. I think the UK should consider a similar scheme here, but probably more generous - to increase local support for wind and solar power. We need to rapidly unlock the exploitation of the country’s fabulous coastal (and some inland) wind resources.

Details of the Danish scheme (full text at bottom of page)

· Any household living within 8 times the height of a wind turbine or 200 metres from the nearest solar panel is eligible. The average new onshore turbine (measured to the highest tip) is likely to be around 100 metres, implying a qualifying distance of up to 800 metres.

· Each household is awarded the value of the output of 6.5 kilowatts both for solar and wind.

· The maximum proportion of the output of the wind or solar site that can be paid to local householders is 1.5% of the total. In the event that 6.5 kilowatts multiplied by the number of eligible homes would exceed 1.5%, the value of the payment is cut proportionately so that the total does not go over this limit.

Householders have to apply for the payment.

What would be the implications of this scheme if used in the UK?

· 6.5 kilowatts of wind power is likely to produce about 19 megawatt hours a year on a reasonable site close to a coast. (33% capacity factor assumed). At a value of £60 per megawatt hour, the payment would be about £1,100 per year.

· 6.5 kilowatts of solar power should achieve slightly more than 6 megawatt hours a year on the coasts or in the southern part of England. (11% capacity factor assumed). This would generate a payment of about £375.

Of course, the numbers in March 2023 would be much larger because of the unusually high prices for wholesale electricity. They might be double these levels.

Would the cap of 1.5% of output typically come into play?

· A new onshore turbine installed in 2023 might have an maximum output of 4 megawatts. Therefore the 1.5% maximum would be 60 kilowatts, meaning only 9 households could benefit before the annual payment was scaled back.

· A solar farm typically could have a capacity of 10 megawatts. This would allow 23 households to benefit before proportional cuts were made.

What changes might make this work for the UK?

We know there is broad support for wind and solar, even if it is developed in the immediate proximity. The UK government has just published its latest opinion survey on the topic.[1] This shows that only 12% would be unhappy about a wind farm in their local area and 7% similarly opposed to solar. (However these figures may be slightly inaccurate because some respondents said that a solar or wind farm would be impossible in their area and therefore didn’t say whether they opposed them or not). For comparison, only 4% of people are generally unhappy with solar, wherever it is sited, and 11% oppose wind.

My guess - and of course it is only a guess - is that the payments might need to rise to a maximum of 3% of the revenue of the renewable site and payments be made corresponding to up to 10 kW of capacity. This could extend up to 1km from a turbine and 300 metres from a solar farm.

This would mean that a home in a wind turbine’s area might get £1,700 a year at a ‘normal’ wholesale electricity price of £60. That would be greater than the typical electricity bill. Solar would provide a fee of just under £600.

Perhaps these bonuses would help bring local communities behind new renewables developments. And allow elected politicians to actively support them, rather than almost universally oppose them for fear of the consequences at the next polling date. It might unlock the London’s government’s almost total ban on new English wind.

Most importantly, it would give local people a sense of de facto ownership of the asset. In my experience, nothing promotes wind or solar better than the feeling that every time the sun comes from behind the clouds, or the turbine spins once, a small amount of money has been earned.

[1]https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1140685/BEIS_PAT_Winter_2022_Energy_Infrastructure_and_Energy_Sources.pdf

I am very grateful to my daughter Ursula Brewer, operations manager at solar developer Better Energy in Copenhagen, for informing me about the Danish scheme.