Give Scottish communities the power to unlock millions from onshore wind energy, urges think tank

Communities across Scotland could receive around £827m over 5 years from onshore wind energy, if ministers give Scotland’s host communities the right to a share in their local windfarm. That’s according to a leading think tank, CLES – the Centre for Local Economies.

Their research, published today, shows how Scotland’s fast-growing wind sector could become a powerful source of long-term local income, supporting jobs, services and regeneration – but only if communities have a financial stake in the turbines to ensure that more of the money generated is retained in the communities where they are hosted.

Researchers say that this would help to counteract inequalities revealed by their analysis – that excessive profits are currently leaking out of the communities who host onshore wind turbines. They found that over five years:

• Approximately £5.6 bn was made in profits by operators
• Around £729m of which was siphoned off in dividends to owners based in tax havens and private equity companies
• While voluntary community payments by operators to communities over the same period totalled just £147m – with some paying nothing at all
• But if communities had a 20 per cent stake in onshore wind turbines, then they would have received around £827m over the same period (£165m/year).

These findings come as the Scottish Government prepares to expand onshore wind capacity, during which time CLES urge ministers like Stephen Gethins MSP and the UK’s Ed Miliband MP to ensure this expansion serves the energy and financial security of Scottish communities by supporting the growth of community owned windfarms, which put the proceeds of energy bills back into towns and villages across Scotland. Profits from community owned windfarms are already being reinvested to:

• Improve community facilities
• Regenerate town centres
• Create transport initiatives
• Support cafes and hubs that support essential services and employment
• Support disadvantaged groups, youth, culture, climate action, environmental projects, and community events
• And wind income has sustained local jobs, volunteering, education, and wellbeing initiatives, while building financial reserves to support communities into the future

CLES say that a first step towards increasing community ownership should be to require operators to offer communities a minimum shared ownership stake in new developments of 20 per cent. A similar policy already exists internationally, in Denmark.

Case study – Beinn Ghrideag wind farm – a community owned wind farm:

Point and Sandwick Trust (PST) in the Outer Hebridies was established in 2009 to reinvest the profits of Beinn Ghrideag – the UK’s largest community-owned wind farm at 9MW – into local development. It has delivered £9 million to the community over 10 years, the same amount as the UK’s largest private wind farm which is 60 times larger.

The money has been invested in supporting a wide range of projects from hospice care and heritage restoration to environmental initiatives and youth development. Its spending takes a flexible, community-led approach which has ensured that vital services, infrastructure, and opportunities for all ages were maintained and expanded, while also fostering resilience, pride, and sustainability in the local community.

Julian Boys, report author and associate director (economic strategy) at CLES said:

“Communities aren’t passive – they’re the stewards of their place – and they deserve more than compensation – they deserve to own their own assets.

“As Scotland expands its wind capacity, there is a real opportunity to build stronger local economies and reduce inequality. With the right approach, wind power can become a long-term source of income for communities across Scotland.”

Liz Murray, Policy Manager at Community Energy Scotland, a member-led organisation that is the voice of the community energy sector in Scotland, said:

“This research shows clearly the enormous benefit that community ownership of onshore wind farms brings, compared to those owned by private companies.

“When communities own wind turbines, they have complete control over where the income goes and they choose to spend it locally on things like insulating homes, keeping shops and cafes running and providing public transport where there might not otherwise be any.

“We’re calling on the Scottish Government to urgently create the conditions for more community-owned energy, so that the benefits of Scotland’s renewable energy revolution can be shared more fairly.”

ENDS