Communities across Scotland risk missing out on a share of the wealth generated by renewable energy projects unless governments move quickly to strengthen support for shared ownership schemes, according to a new report.
Research published by Scotland’s Community Climate Action Hubs and clean energy consultancy Regen argues that community ownership stakes in wind and solar developments could provide long-term funding for local climate and nature projects. But it warns that delays to regulation, a lack of specialist support and the pace of renewable energy development could leave many communities unable to take advantage of the opportunity.
The report comes as the UK Government considers making community ownership offers a requirement for renewable energy developers.
Regen’s modelling suggests the sums involved could be substantial. A community holding a two percent stake in an offshore wind development could receive around £45 million over the lifetime of a project, although the figure depends on future energy prices and support mechanisms.
Despite years of discussion around community benefit and local ownership, there is currently no requirement for developers to offer communities a stake in projects. Shared ownership remains voluntary guidance rather than a formal obligation.
The report argues that even where opportunities do exist, many communities are not equipped to pursue them.
Negotiating ownership arrangements often requires legal, financial and technical expertise that volunteer-led community organisations may struggle to access. At the same time, many renewable energy projects are already progressing through development pipelines linked to the UK’s 2030 clean energy targets, reducing the window for communities to become involved.
Speaking at the Stop Climate Chaos Scotland annual gathering in Edinburgh, East Lothian Climate Hub manager Bobby Pembleton said the current approach places too much responsibility on local groups:
“The promise of shared ownership has not yet translated into the scale Scotland needs
“One major reason is that it is extremely difficult, and often intimidating, for community groups to access the right specialist legal, financial and technical expertise at the right time.
“Too often, the burden falls on passionate local volunteers and community champions who already give enormous amounts to their places, and who now must conduct complex negotiations with major commercial developers.”
He said communities needed ownership offers to be made earlier in the development process and backed by practical support.
“If shared ownership is to be a real thing, not just an aspiration, communities need sincere, actionable offers, made early, backed by the right technical assistance, and supported by a mandatory UK-wide framework,” he said.
The UK government and Great British Energy launched a consultation in February on proposals that could make shared ownership offers mandatory for renewable energy developments. Further details are expected later this year.
For Scotland’s Climate Hubs, the issue is about more than generating income. The network argues that giving communities a stake in renewable energy projects could help ensure that the economic benefits of the energy transition are felt locally, rather than flowing primarily to developers and investors.
Pembleton said Scotland was in a strong position to make the approach work because of its network of 24 Community Climate Action Hubs.
“That gives Scotland a unique opportunity to ensure communities are not just consulted but have a real stake in the renewable energy transition, and the wealth it creates,” he said.
“The renewables transition is well underway. We cannot allow the opportunity to pass to secure a fair share for Scotland’s communities.”
Merlin Hyman, chief executive of Regen, said community ownership should be seen as a long-term investment rather than a quick source of revenue:
“With the right governance, specialist advice and access to affordable finance, it is a promising way to enable much greater local value from renewable energy projects.”
