WIND farms could bring a boost of nearly £900 million to communities in the South of Scotland over the next few decades, with the potential to help “tackle major societal challenges”, according to a new report.
The area currently has just over a fifth of the country’s existing onshore wind capacity – but this could more than double by 2030, according to the study published by South of Scotland Enterprise (SOSE).
As long as future developments keep to “established standards of good practice” in providing community benefit funds, it could be expected to generate around £12m per year for locals by 2033, rising to nearly £70m per year by 2058.
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However the report said this opportunity “cannot be taken for granted” and important questions would have to be answered to ensure communities gained the maximum benefit.
It concluded: “Over a 35 year period, this could amount to nearly £900m - nearly 30 times more than has been received up to 2023.
“This is a huge opportunity for the South of Scotland with the potential to drive local regeneration and help tackle major societal challenges.”
One of the first onshore wind farms in Scotland is located in Dumfries and Galloway – Windy Standard, or Brockloch Rig – which started generating electricity in 1996.
By the end of 2022, there were 850 installed wind turbines across the South of Scotland, accounting for 21% of Scotland’s total.
The study found community benefit funds – which are voluntary arrangements offered by developers to residents living nearby – totalled £4.1m from these turbines.
Scottish Government guidelines state the level of benefit should be £5,000 per megawatt (MW) per year.
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The report said: “On this basis it looks like the South of Scotland’s communities have been receiving less than is considered good practice in terms of community benefit funding from onshore wind farms.
“However, a wind farm project can take several years in the development stage and perhaps two years in construction so it is not uncommon for a gap of ten years or more between an offer of community benefit being made and funding becoming available.
“This means many of the funds associated with existing installed capacity relate to projects constructed, planned or approved before the £5,000 per MW per year benchmark was established.”
Examples given in the report include the Blackcraig Wind Farm Community Fund which covers ten community council areas and is worth around £250,000 per year.
Another is a three turbine wind farm development, The Fishermen Three, which is on the boundary between East Lothian and the Borders and a joint venture between Berwickshire Housing Association (BHA) and Community Energy Scotland.
It is expected to generate around £20million for the BHA, enabling around 500 new homes to be built.
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Professor Russel Griggs, chair of SOSE said: “It is important to emphasise to everyone that community benefits from wind farms belong to local communities and will stay that way.
“The findings of the onshore wind report we have commissioned, alongside the recent Sector Deal for onshore wind, includes a commitment to enhance community benefits. As a result, it feels like this is the right time to be increasing the collective understanding around community benefits in the South of Scotland.
“We think it is vital to understand what has worked well for communities so far in the South and elsewhere, and what could be improved for the future.
“We would like to showcase best practice and find out whether there are barriers to other opportunities, such as shared ownership, for example.”
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