New research shows a ‘staggering imbalance’ in who benefits from Scotland’s renewable energy boom.
A report by Equitable Energy Research CIC highlights that community-owned renewable energy projects are generating over 100 times more wealth for local people than privately-owned wind farms, sparking renewed calls for a shift toward community and public ownership.
The report, ‘Social Value from Renewables in the Highlands and Islands’, compares the returns to local people from different types of renewable energy projects.
The findings indicate community energy can empower communities through social wealth generation and produce vastly more wealth for local people than privately-owned projects focussed solely on generating wealth for private companies as opposed to reinvesting those profits back into communities:
- Tilley, the Tiree Community Wind Turbine, returns over 100x more economic value to the community than the privately-owned Beinn An Tuirc 1-2 Wind Farm, despite being around 1 percent of the size.
- Community-owned Garth Community Wind Farm returns around 90x more value per MW to the community than the privately-owned Viking Wind Farm, despite being 100 times smaller.
- Orkney Community Wind Farms, wholly-owned by Orkney Islands Council, are set to deliver £5.5 million in revenue each year, helping to support public services across the islands.
Speaking about the impact of one such project, Emmie Martin, community projects officer at Tiree Community Development Trust, said:
“Tilley – our community-owned wind turbine – has been the cornerstone of our community for over 15 years. The wealth she generates goes straight back into the island through our Windfall Fund, which has awarded more than £1.3million to local projects. Tilley is proof that when renewables are community-owned, they create real power for local people – not just electricity, but money to fund vital services where they’re most needed.”
But despite huge potential gains from community ownership, just 0.5 percent – around 85MW – of this power is community-owned.
Flick Monk, Public Energy Campaigner at Platform, a charity bringing workers and communities together for climate justice and who commissioned the study, said:
“Community-owned energy projects are punching well above their weight and returning vastly more wealth to local people than their privately-owned counterparts. So why make do with crumbs from the corporate table?
“There’s a staggering imbalance in the distribution of profits generated by renewables. It’s imperative that we join the dots and realise community ownership at scale. Local people deserve the lion’s share of wealth generated on our doorsteps and real control over our vital energy infrastructure.”
The research lands amid growing concerns over the distribution of wealth generated by Scotland’s booming renewables sector as the nation hurtles towards its clean energy by 2030 target.
At Community Energy Scotland’s Community Power event this February, concerns were raised around the current wealth distribution – or lack thereof – from renewables produced in Scotland are indeed fair.
Read more: Communities at the heart of Scotland’s renewable future
Wind power now produces enough electricity to power 10 million homes, yet many communities near these developments remain in fuel poverty, paying the highest energy prices in the UK all while struggling to keep up with an unwavering cost of living crisis.
According to the Scottish Human Rights Commission, thousands of people living in the Highlands and Islands are ‘hungry, homeless and without access to healthcare’, with 40 percent of households in the Western Isles in fuel poverty.
That’s why The Scottish Beacon has launched The Power Shift, a major new collaborative journalism project featuring in depth stories from 10 of our publishing partners – independent, community-based publications from right across Scotland – who are investigating how Scotland’s green energy transition is reshaping land, communities and power dynamics across the country.
Backed by the Tenacious Journalism Awards, this project will bring together community-based publications from across Scotland to uncover who really benefits from the shift to renewables – and who’s being left behind. Have your say here.
From land ownership and community benefits to the voices that often go unheard, we’ll be digging deep into the positive and negative impacts of Scotland’s energy boom – aiming to inspire cross-community learning as well as holding power to account.
