Open participation offer to local investment while developing the Aeolic project

By project BIOWIND

Published on 04 July 2024

Spain

Cataluña

About this good practice

The Parliament of Catalonia stresses the importance of social dialogue in renewable energy projects, prioritizing proximity to consumption centers and ensuring local citizen participation, as per Directive (EU) 2018/2001.

Catalonia's Law 16/2017 targets 50% renewable electricity by 2030, requiring significant land use and resulting in social and territorial impacts. Decree-Law 24/2021 on the acceleration of the deployment of distributed and participated renewable energies, aims to improve social acceptance, reconcile agricultural activities with energy production, and ensure biodiversity conservation, land use planning, and sustainable rural development.

For wind farms and solar plants over 5 MW on onshore non-urbanizable land, promoters must offer local participation and use over 50% private land. This offer allows local individuals and entities to own or finance at least 20% of the project. Individuals must have been registered locally for at least 2 years, and legal entities must meet specific local presence criteria.

The participation offer must be communicated to municipalities, published in local media, and remain open until 20% participation is reached. Residents and investors in host municipalities and tenants on private land used for projects will benefit economically, enhancing social acceptance.

Resources needed

Political will to implement these measures through the approval of regulations.

Evidence of success

Example: Galatea project(48.94 MW)by Enel Green Power S.p.A.
Investment conditions offer residents of project municipalities a 5.8% IRR, with initial €500,000 reserved. Nearby residents receive 5.3% IRR. Investment ranges €500-25,000 over 10 years, guaranteed by Endesa, S.A. Investment reservation opens March 2023; financing opens Q3 2025.
The project shows success of the G.P. through local economic participation and positive press, awaiting the full impact as the reservation period still open.

Potential for learning or transfer

This good practice has the potential for transferability to European regions because it constitutes a development pathway for Directive (EU) 2018/2001, which aims to increase local citizen participation in renewable energy projects, thereby increasing their social acceptance. The only requirement is the political will to create a specific regulatory framework, as the general framework is established by Directive (EU) 2018/2001.