Fancy £1,000 a year off your energy bill? Of course you do – but would you put up with a pylon or wind turbine outside your house in return?
That’s the basis of the ‘proximity payment’ offer the Government made in last year’s Autumn statement. The full criteria haven’t yet been thrashed out but the principle is £1,000 off your energy bills each year for 10 years if you live near a new energy transmission route – that’s the big pylons to you and me.
As far as we can tell this only relates to new lines and possibly large wind turbines, but it’s a generous offer and would potentially cover more than 50% of the energy bill of an average house.
And we desperately need new transmission lines to connect homes and businesses to our dispersed off- and on-shore energy generation sites. In the next seven years Britain will need to build four times more grid infrastructure than it has managed in the last 30; our transition to net zero and energy security depends on it. We are more than 10 years behind where we need to be, and new energy generation sites have to wait up to 15 years for a connection to the grid.
Planning for change?
One of the main drags on the roll-out continues to be our planning system. A few local objectors can hold up an application for a national infrastructure project for years. So the Government has announced this new sweetener to encourage support.
The planning system’s Section 106 already requires developers to pay a sum relative to the scale of their project to offset its or to improve neighbourhoods. It can be spent on anything from new pedestrian crossings or playgrounds to improved bus services and community clean ups. But it is spent by the council, not the community.
Many renewable energy projects set up their own funds for the rural towns and villages they impact. Some companies are experimenting with more direct benefits, like money off bills when the blades are turning or the sun is shining, or even community owned renewable energy companies that generate their own infrastructure.
Proximity payments have been made in Ireland for some time now, so the idea of a £1,000 payment follows a long tradition. Pragmatically, they should oil the wheels for large projects but they might not have the impact the Government hopes for. Campaigns to block projects like new pylons are often led by a small number of very committed people, who might even consider such payments a ‘bribe’. Without a change in planning law they will still be able to disrupt planning applications even while others look forward to their payment.
Communities missing out
Many of the communities now being affected by our energy transition have felt powerless in the face of change before. Severn Wye works extensively across Wales where, for centuries, large companies have profited from resources like coal, wood and hydro power without much benefit to local people. This experience runs deep and wind turbines and pylons are often seen as just another big company making money without giving anything back. This creates a passion and devotion to a cause that may well not be overcome by payments in lieu – that’s why you see so many banners opposing wind turbines as you travel through Wales despite the jobs they may provide.
Financial incentives do little to build understanding or a consensus in communities across the UK that we must all do our bit to make the transition to net zero and that, done right, everyone can benefit.
This is a national challenge we must face together. We will have to wait and see if £1,000 proves a good way to share the burden.
