Community Fund
Council-owned wind farms would have the potential to generate significant income every year, helping us tackle the twin challenges of budget reductions and an increasing demand for public services. It’s estimated that the projects could make up to £5.5 million profit per year. As the income would come into the Council who will be the sole owners of the projects, and it’s the Council who provide vital local services, it will benefit everyone in Orkney in some way. That element is referred to as ‘the community fund’.
Location-Specific Community Benefit Fund
Community Benefit Funds are a well-established, integral part of renewable energy developments. They are voluntary arrangements offered by renewable energy developers to communities located near developments.
Following the principles outlined by the Scottish Government in Community benefits from onshore renewable energy developments, the value of the location-specific community benefit scheme is set at £5,000 per megawatt (MW) installed per year which, with a 28.8MW installed capacity, would result in an annual location-specific community benefit fund for each site of £144,000, or £432,000 per year across all three sites.
How could Orkney benefit from a location-specific Community Benefit Fund?
In 2021, the Strategic Projects team held a number of public consultations across Orkney to determine how best to distribute a location-specific community benefit fund from the project. In 2022, Elected Members of Orkney Islands Council approved the recommendation that 100% of the fund should be managed by Community Councils, with 60% to the host community and the remaining 40% split on a per population bases to the other Community Councils with a de minimis of £5,000 applied. If the projects go ahead, this will be reviewed to ensure the financial model is up-to-date and it is still in the best interest of Orkney’s communities.
