With Community Benefit Mechanisms, Wind Energy Projects Can Power Local Investment

Dec. 11, 2024

A wind turbine illuminated in front of a river across from a city at night

A wind turbine was erected outside Boston in 2008. Photo from Forbes Park, LLC

Written for WINDExchange by Tara McMurtry, National Renewable Energy Laboratory

Did you know that wind energy projects can help fund area residents’ tuition, or that they can help restore a community’s elementary school?

Both are true.

Under a formal agreement with Penobscot County in Maine, Passadumkeag Wind provides tuition payments and other benefits to county residents. In Montana’s Stillwater County, Pattern Energy donated $100,000 to Reed Point Elementary School to help repair and update the building after it was forced to close due to bat and termite infestations.

These are just a few examples of wind energy community benefit mechanisms (CBMs)—initiatives, agreements, or contributions developed by wind energy projects to deliver economic, environmental, or social benefits to nearby communities. Often, they support local priorities, such as workforce development, infrastructure, and community services.

CBMs include community benefit agreements (CBAs), which are legally binding contracts between developers and communities that outline specific commitments to provide economic, environmental, or social benefits to the community.

“CBMs are gaining state and federal support and are increasingly used across the renewable energy sector, especially offshore wind energy,” said Suzanne MacDonald, a National Renewable Energy Laboratory researcher who has supported New England communities exploring offshore wind energy opportunities. “CBMs not only enhance the benefits of renewable projects but also help address any concerns, especially when projects are sited closer to communities.”

To help communities near wind farms learn how they can engage with and benefit from nearby wind energy projects, the U.S. Department of Energy’s WINDExchange initiative has developed two resources: the Wind Energy Community Benefits Database and the Wind Energy Community Benefits Guide.

A Negotiation Power Tool

In negotiations between communities and wind energy project developers, the imbalance of knowledge and resources can cause tension and put communities at a disadvantage. CBMs give communities a tool for clarifying their priorities and communicating them to developers, which can level the playing field and give communities a voice in shaping wind energy projects to serve their needs.

Local decision makers may gather feedback from residents of the community about if or how a CBM should be pursued. This engagement helps identify priorities, assess potential project impacts, and evaluate whether the CBM aligns with the community’s long-term goals for economic, social, and environmental well-being. Communities can also draw on technical assistance for help understanding their options.

“Access to technical expertise can also make a big difference,” added MacDonald. “For example, neutral facilitators can help guide discussions, technical consultants can assess options, and lawyers can ensure that agreements are structured to best serve the community's interests.”

Explore Real-World Examples of Wind Energy Community Benefits

Wind energy community benefits can be structured and delivered through several different means. WINDExchange’s Wind Energy Community Benefits Database provides real-world examples of CBMs, including community benefit funds, donations, formal agreements, and other forms of benefits from land-based and offshore wind energy developments in the United States.

Database users can search by keyword or filter their search by state, infrastructure type (land-based or offshore infrastructure, including ports and cable landings), and the type of benefit mechanism. The database focuses on five of the most common benefit mechanisms, which are:

  • Formal agreements signed by developers, local or Tribal governments, and/or community organizations.

  • Payments, donations, or other financial benefits paid to a local or Tribal government outside the bounds of a formal agreement.

  • Funds established by developers to support different causes or recipients in the community over time, often in the form of grants.

  • Direct contributions to local community organizations, programs, or causes.

  • Nonfinancial benefits.

“The database allows people to explore real examples of wind energy community benefits in depth,” said NREL researcher Matilda Kreider, who led the development of the database. "It shows how different benefit types and structures have been implemented, helping communities and developers find models that align with their values and goals."

To develop the database, the NREL team collected data across more than 1,000 land-based and offshore wind projects. This required the team to comb through old news articles, social media posts, project websites, and other online resources, as well as verifying the data with project owners and local officials.

“Having a large, comprehensive dataset of community benefit information makes it possible to identify trends and set the baseline for what’s been done historically,” said Kreider.

Discover How Wind Energy Projects Can Benefit Your Community

Wind energy CBMs have been used for decades in the United States and abroad, but the approach to establishing them is not standardized. In addition, the topic of community benefits continues to evolve with wind energy’s expansion. WINDExchange’s Wind Energy Community Benefits Guide serves as an introduction to wind energy project CBMs to help decision makers, local stakeholders, and developers understand the different ways communities can benefit from wind energy developments.

The guide draws on insights from case studies and interviews with local leaders, developers, researchers, and other subject matter experts. It explains various forms of community benefits, such as grant funds or direct investment in local infrastructure and programs. It also covers what processes may be used to develop CBMs and offers examples from both land-based and offshore wind projects.

“The community benefits guide aims to help communities and developers orient themselves in the world of wind energy community benefits,” explained Kreider. "Community benefits can be an intimidating topic because people really want to get it right, so we wanted to help empower people to get started.”

Learn More

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