What does maximising net economic impact mean for planning?

On the 2nd April, the Bunloinn Wind Farm was granted consent by Scottish Ministers. This is an Energiekontor UK wind farm proposal with 10 turbines in the Highland Council area. This was not a project that BiGGAR Economics worked on, however it does highlight the NPF4 requirement for “maximising socio-economic impact” means different things to different bodies.

Socio-economic Conditions Set by the Highland Council

The Highland Council raised no objection to Bunloinn Wind Farm, however it did set out two conditions that related to how it considered the socio-economic benefits of the wind farm could be maximised. These conditions were:

• the developer will monitor the level of economic impact supported by the wind farm and if this falls below what was reported in the EIA, the developer should compensate for any shortfall; and
• the developer shall commit to a Community Benefit Fund that shall be administered by The Highland Council.

Scottish Minsters Response

In consenting the wind farm, the Scottish Ministers did not adopt these conditions. The Scottish Minsters stated that "the financial contributions sought under such a scheme and the benefits which it is envisaged it may finance, are not connected to the proposed development".

Getting Clarity on Maximising Socio-economic Benefits

This case highlights the need to know what "maximising net economic impact" looks like. BiGGAR Economics is working with Scottish Renewables to create a socio economic benefit framework to replace what is currently in an EIAR. Scottish Renewables is establishing a Task (and Finish) Group to develop guidance for developers on how socio-economic impacts should be assessed in the planning stages. This will consider:

• is the EIA process really the best place to assess if a development is maximising its net economic impact?; and
• what factors would need to be considered to maximise benefits?.

This will build on our recent work for Moray and Highland councils. BiGGAR Economics was commissioned to investigate the benefits which have arisen during the construction and operation of energy developments in Moray and Highland, and to consider how benefits might be maximised in the future. This study included consultation with industry, public sector and community stakeholders and found that maximising net economic impacts will require:

• the voluntary nature of collaboration between developers and communities;
• leaving scope for innovation and bespoke solutions and opportunities;
• a planned approach is crucial for maximisation;
• the approach should be holistic;
• it should enable rapid deployment and not be a barrier;
• ensure high local supply chain content;
• bespoke local employment and skills training;
• fair contributions for enabling infrastructure;
• fair community benefit packages; and
• continued innovation.

This report will be published by Moray Council soon, and will contribute to its Draft “Maximising Net Economic Impact Supplementary Planning Guidance" that shall also be out for consultation soon.