DESNZ publishes working paper on community benefits and shared ownership for low carbon energy infrastructure
The Department for Energy Security and Net Zero (DESNZ) has published a working paper, seeking views on the design of a potential mandatory community benefits scheme for low carbon energy infrastructure, alongside options to support shared ownership of renewable generation infrastructure. The paper covers: (1) the scope of the proposed scheme; (2) potential administration and enforcement mechanisms; and (3) strategies to facilitate shared ownership of renewable generation infrastructure, including whether to exercise powers under the Infrastructure Act 2015 (IA 2015) to establish a mandatory approach or to maintain the current voluntary approach. Under the proposals, energy developers would be required to contribute to community benefit funds, ensuring that families, businesses, and local community groups residing near offshore wind, onshore wind, and solar farms benefit directly from these projects. The paper also outlines how communities could own a stake in such infrastructure through shared ownership, with profits being reinvested locally. It further invites feedback on which types of energy infrastructure should be mandated to contribute to such funds. Responses are due by 16 July 2025.