A comparative analysis of the costs of onshore wind energy: Is there a case for community-specific policy support?

B-Tier
Journal: Energy Policy
Year: 2017
Volume: 106
Issue: C
Pages: 394-403

Authors (5)

Berka, Anna L. (Massey University) Harnmeijer, Jelte (not in RePEc) Roberts, Deborah (not in RePEc) Phimister, Euan (University of Aberdeen) Msika, Joshua (not in RePEc)

Score contribution per author:

0.402 = (α=2.01 / 5 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

There is growing policy interest in increasing the share of community-owned renewable energy generation. This study explores why and how the costs of community-owned projects differ from commercially-owned projects by examining the case of onshore wind in the UK. Based on cross-sectoral literature on the challenges of community ownership, cost differences are attributed to six facets of an organisation or project: internal processes, internal knowledge and skills, perceived local legitimacy of the project, perceived external legitimacy of the organisation, investor motivation and expectations, and finally, project scale. These facets impact not only development costs but also project development times and the probability that projects pass certain critical stages in the development process. Using survey-based and secondary cost data on community and commercial projects in the UK, a model is developed to show the overall impact of cost, time and risk differences on the value of a hypothetical 500kW onshore wind project. The results show that the main factors accounting for differences are higher pre-planning costs and additional risks born by community projects, and suggest that policy interventions may be required to place community- owned projects on a level playing field with commercial projects.

Technical Details

RePEc Handle
repec:eee:enepol:v:106:y:2017:i:c:p:394-403
Journal Field
Energy
Author Count
5
Added to Database
2026-01-24