How a large developer overcame NIMBY​

To overcome NIMBY, Denmark’s largest energy and distribution company, and a major developer, Andel, recently chose a different approach than what you usually see, boldly confronting the NIMBY challenge head-on through a nationwide campaign that puts real-life ‘rebels’ front and center.

A substantial commitment of €12.06 billion underscores the magnitude of Andel, Denmark’s largest power utility company, as it gears up to expand its renewable energy infrastructure over the next decade. In a Danish context, this financial commitment is significant. However, its true value hinges on the ability to navigate and overcome opposition, ensuring the realization of crucial wind and solar projects vital for greening the energy mix

Born from a merger of two major Danish power suppliers, Andel inherited not only considerable clout but also a pressing need to establish its identity and garner public favor. Yet, standing in its path was the formidable barrier of local resistance. Many of its green projects remained grounded, stymied by communities averse to living in the shadow of wind turbines and solar panels. But amidst this quagmire, Andel saw an opportunity.

“We have limited space in Denmark, so if new wind farms are to be set up, many will become neighbors to them, and that creates dissatisfaction for some. That turned out to be the biggest hurdle for Andel, so it became the starting point for our campaign strategy”​
– Kim Boisen, CEO of Robert/Boisen & Like-minded

Insights drove action​

Before launching its campaign, Andel, in collaboration with Norstat, embarked on a pan-European survey spanning 26 countries and over 26,000 interviews. The goal? To delve into European attitudes towards the green energy transition and unearth truths about local sentiments ripe for strategic exploitation.

The findings were revealing. While 20% of Danes expressed opposition to wind farms near their homes (with a slightly lower 19% for solar parks), a striking 82% maintained a favorable view of wind energy overall. Further digging unveiled that local opponents of wind projects had managed to cancel out 14 out of 17 onshore wind projects in the last two years alone.

This contrast underscored the paradoxical nature of public sentiment—a key insight that would inform Andel’s campaign strategy.

Real stories affected NIMBY​

We’ve all seen commercials that feel staged and lack authenticity. Such approaches seldom resonate deeply enough to incite real change in attitudes and behaviors—an objective Andel was keenly aware of. Thus, the decision was made to adopt a documentary-style approach, featuring genuine NIMBY individuals candidly expressing their concerns about living near wind turbines.

Assessing the aftermath​

As the old saying goes, “money makes the world go round.” Yet, to usher in the green transition, local support, not just money, is paramount in overcoming installation hurdles. So, has Andel’s campaign succeeded in reshaping perceptions? With over a year gone since its launch, now is an opportune moment to reflect on its impact—not only on Andel’s brand awareness, given its relative novelty upon launch, but also on any tangible business ramifications.

“Our Wind Energy Team, the team responsible for finding locations for new wind projects, have gotten significantly more requests than they have ever received”​
– Rikke Harbo Trikker, Head of Communications, Andel

By the numbers, Andel’s strategy of confronting NIMBYism head-on has not only swayed skeptics but has also spurred proactive engagement. Since the campaign’s launch, over 11,000 unique submissions have poured in—an impressive testament to its efficacy.

Notable campaign results

• 24,000 likes, shares & comments
• 11,885 unique locations identified for onshore wind turbine installations
• Earned media value: 3.5m DKK
• 49% campaign awareness among all Danes
• 24% exhibit a more positive attitude towards wind turbines
• 25% have contributed more to the green transition post-campaign
• 146 unique press mentions across TV, radio, print media, and online platforms
  (Source: Markedsføring.dk)

Round 2 – The end of NIMBY?​

But the journey doesn’t end here. In late 2023, Andel launched a second wave, employing creative tactics to further shift public perception. Dubbed the ‘Windy Retreat,’ this initiative invited NIMBYs to experience life near wind turbines firsthand. Over 1,200 Danes applied, with 16 families ultimately selected to spend a week amidst the turbines. For those not chosen, Andel provided a map highlighting rental properties near wind turbines, offering everyone the chance to challenge their assumptions. “Compared to the first campaign, which was about whether there should be space at all, citizen meetings are now being held in the municipalities to discuss where the space should be, says Rikke Harbo Trikke. 

Ahead of this initiative, Andel and Norstat conducted another survey revealing that 93% of Danes living near wind turbines experience minimal disturbances. Armed with this insight, Andel extended an invitation for skeptics to experience the reality for themselves.

“When we add this opportunity to the mix and say, okay, we’re now giving you the opportunity to try it out yourselves, then I also think that you lose the right to shout loudly if you don’t take up the offer.” ​
– Rikke Harbo Trikker, Head of Communications, Andel

From NIMBY to PIMBY​

Even though the latest results have not been disclosed by Andel yet, judging by the current numbers and change in public sentiment over such a short period, I think it is safe to say that Andel’s approach to overcoming the NIMBY challenge as a large power producer and developer is noteworthy to say the least. While Andel’s approach may not be universally applicable, its commitment to open dialogue and engagement should serve as inspiration for everyone. As nations worldwide strive for cleaner energy futures, Andel’s journey from NIMBY to PIMPY underscores the transformative power of communication and empathy in overcoming local opposition.

La entrada Overcoming NIMBY se publicó primero en We turn good projects into great deals - Green Dealflow.

Denmark’s strategic agreement

In a transformative move, Denmark has unveiled a strategic agreement to reshape its onshore renewable energy landscape and boost annual kilowatt hours from 12 to 50 billion by 2030. The agreement aims to facilitate the establishment of expansive onshore energy parks by offering a roadmap for smoother processes and faster permitting for greenfield developers. In addition, the agreement unveiled 32 pre-screened areas earmarked as potential energy parks. From a developer’s perspective, the positive aspect is the effort to simplify and expedite permitting procedures, coupled with initiatives to garner local community support for new projects. However, the flip side is that developers will bear the responsibility for making the latter initiatives a reality through increased contributions to the local “Grøn Pulje” (Green fund).

Balancing community support and developer contributions

The agreement addresses the common challenge faced by developers worldwide: Community relations and support for renewable projects. Recognizing the impact of these projects on local communities is crucial for gaining wider acceptance and support. Consequently, the new agreement guarantees a 50% increase in compensation, known as the ‘VE-bonus’ (Renewable Energy Bonus), for residents near solar and wind farms, bringing the annual compensation up from 9,000 DKK.

“It should be a winning case to have an energy park. Solar panels and wind turbines fill the landscape, and they should be erected in harmony with the surroundings. And we pave the way for green power centers that can create local development and growth. This should happen simultaneously with neighbors and local communities benefiting more from the gains of renewable energy.”​
– Minister of Climate, Energy and Utilities, Lars Aagaard

In addition to compensating affected residents, the agreement promises a 150% increase in contributions to the ‘Grøn Pulje,’ a fund administered by local municipalities and funded by developers paying a fixed rate per installed MW (125,000 DKK per installed MW in 2023). This will still be a one-off payment that developers pay upon connection to the grid. The new agreement will require developers to contribute an additional 2.5 billion DKK (totaling 4.5 billion DKK by 2030). This funding will support increased resident compensation (1.2 billion DKK) and municipality projects aimed at enhancing local community well-being through initiatives like forestry projects, city parks, and nature walks (3.3 billion DKK).

Blueprint for success?​

Denmark’s commitment to quadrupling onshore energy production is a beacon of hope, particularly for the revival of onshore wind, which has nearly ground to a halt. In 2023, only 14 onshore wind turbines with a total capacity of 53 MW are expected to be installed, a stark contrast to the 53 turbines installed in 2020. The story differs for solar photovoltaic capacity, with 3,372 MW of grid-connected capacity installed by June’s end (up from 1,366 MW in 2022).

While the new agreement’s outline appears promising and has been received well, its success greatly hinges on whether developers will seize the opportunity, considering the promise of faster and easier permitting will bring increased financial contributions.

The question remains: Is this a viable blueprint for success? Only time will tell.

You can also read:
How a Danish IPP and developer overcame NIMBY by going on the offense.

Facts about the agreements​

• Quadrupling renewable energy on land will contribute up to 1,3% of Denmark’s area compared to 0,5% today.
• Area protection for energy parks eases – taking into account nature and culture etc. – to bring more areas into play for energy parks.
• Favorable conditions are given for the placement of PtX plants and companies such as manufacturing companies in connection with facilities in the energy parks, where special considerations speak for this placement.
• Designation of areas for larger energy parks based on ongoing application rounds and dialogue with municipalities and the possibility of faster and easier establishment by full or partial stake takeover of planning and authority processing
• Grøn Pulje increases by 150% for the benefit of local communities
• VE-bonus for neighbors increase by 50% – up to 5000 DKK extra per year in neighbor bonus
• One entry to the authority processing in the nature and environment area
  
  To read the new agreement in full, please visit the Ministry of Climate, Energy and Utilities

La entrada The “Not-In-My-Backyard” Challenge se publicó primero en We turn good projects into great deals - Green Dealflow.