Frequently Asked Questions part 4 - Community Benefit

A key aspect of Orkney's Community Wind Farm project is the potential for local communities to receive a direct payment from the development, which they could use to fund projects of their own. The issue of community benefit was raised frequently with the project team at the public engagement events. Here's some of the key questions we were asked and answers to those:

Will there be a community benefit fund?

The Council agreed on the following guiding principles in September this year for community benefit from the project;

• The key purpose of the Orkney Community Wind Farm Project is to generate profit to be used for the benefit of the people of Orkney.

• Community benefit from the project will be delivered via a ‘Community Fund’ with funding distributed in accordance with the principles of Section 69 (e) of the Orkney County Council Act 1974.

• Financing of the project will be structured to achieve a profit which can be used for community benefit as soon as reasonably practicable in the project lifecycle, noting that any wind farm constructed must pay-off its own construction costs and provide a return on capital invested.

• Profit may be retained for the purpose of extending the life of the ‘Community Fund’, such as through developing new projects, or repowering existing projects.

• The Orkney Community Wind Farm Project is for the benefit of the whole community with benefit delivered through the distribution of funds. It will not be possible for private individuals to take a shareholding in any project.

• Communities located closest to projects will be impacted most by developments. It is therefore considered appropriate to provide these communities with a ‘location-specific community benefit payment’.

• In determining the level and geographic extent of any ‘location-specific community benefit payment’, the principles outlined by the Scottish Government in Community benefits from onshore renewable energy developments: Guidance on good practice principles for communities, businesses, local authorities and others will be used. This commits the Council to undertaking community consultation on the geographic extent of ‘location-specific community benefit payments’ as well as on delivery mechanisms for such payments.

• Receipt of a ‘location-specific community benefit payment’ by any area will not impact on the likelihood of an area receiving further community benefits from the ‘Community Wind Farm Fund’.

The exact way in which ‘location-specific community benefit payment’ will be delivered has not been decided and we would like your views on how you think this should be done. We’ll be running a public consultation exercise on this in 2020.

Will this reduce my electricity bill?

The electricity generation and supply industries are heavily regulated and separated resulting in an extremely complex market and unfortunately a direct link between more renewable generation in a certain area and cheaper bills within that area does not exist at present.

What jobs will be created?

It’s estimated that during the construction and development phase the project could support £2.6 million GVA and 39 jobs in Orkney and £10.4 million GVA and 161 jobs in Scotland. During its operation the project have an annual impact of £0.3 million GVA and four jobs in Orkney and £0.5 million GVA and nine jobs in Scotland. In addition, it would contribute to public finances around £0.5 million through the payment of non-domestic rates.