Last week Scottish and Southern Energy (SSE) launched their new community benefit fund. The launch took place in Bonar Bridge in the Scottish Highlands. The launch of this fund follows on from a change to the level of community benefit provided by the company’s onshore wind developments; last year the commitment was made that £5000 per megawatt of power per year would be devoted to community benefits. The most commonly used turbine model in SSE’s onshore wind developments has a capacity of 2.5MW (megawatt) meaning that each of their turbines could be expected to provide around £12,5000 in community benefit every year.
The new fund could potentially provide up to £50 million of support to community groups and projects in the Highlands over the next thirty years. This year will mark the first round of funding and £1 million is available to interested groups (specifically community groups and charities) which meet the funding criteria. The funding award committee is being chaired by former Scottish First Minister Jack McConnell.
Three priority areas have been developed by SSE and several local stakeholders to receive funding Firstly, job creation and skills training: the funding of apprenticeship schemes, training programs and similar projects to increases peoples chances of entering into employment or progressing further in their careers. Secondly,community energy: the funding of schemes to increase the level of community ownership of renewable energy developments which could create environmental, economic or social benefit. Thirdly, projects which enhance the area’s natural and built environment: schemes for the benefit of the local population and schemes to bring in more visitors to the Highlands are both considered to be priority areas.
A spokesperson for SSE commented at the launch and explained that it was taking place in Bonar Bridge “because we want to feature the success of the SSE Kyle of Sutherland apprenticeship fund, which is fully supported by community benefit from the SSE Achany wind farm.
“The apprenticeship scheme fits in with the criteria of the Sustainable Development fund and we believe it is a great example of how communities use the funds they receive – for hosting a wind farm – in a sustainable way.
“ In the last three years, seven small businesses and young people from the Ardgay, Criech and Lairg areas have been supported through the scheme.
“We have two apprentices and two business owners coming along to the event, including Moray Munro, owner of WM Munro plumbing in Ardgay and Calum Smart, who is in the final year of his apprenticeship with the firm.”
The closing date for applications for the first round of funding is on the 15th of February 2014.
Of course, it should be remembered that it is not only SSE that operates a community benefit fund, nor is it only full scale wind farms which generate such funding. We here at Intelligent Land Investments (Renewable Energy) have been operating such schemes for some time. Our Community Benefits pre-date both the recently published Community Benefit Guidelines and the establishment of the Community Benefit Register itself. We, at ILI (RE) have entered into partnerships with Local Authorities and Charities across Scotland. In areas such as South Lanarkshire where the Local Authority operates its own Community Benefit program we have been contributing more than the required amount for all of our completed developments in the area. More information on the Community Benefit Scheme in South Lanarkshire and information on how to apply for funding can be found here. In areas in which there is no Local Authority led Community Benefit Scheme we have entered into partnerships with local charities such as East Renfewshire Good Causes to ensure that such essential work can continue.
In other news week a new report produced by consultancy firm GlobalData has predicted that the small scale wind market is expected to undergo a sustained period of dramatic growth. As of 2012 the global small scale wind market was worth $609 million, by the end of the decade the market is now predicted to increase in size to over $3 billion. This represents an almost five-fold increase in market size in eight year or alternatively a Compound Annual Growth Rate of 22% up to 2020.
As of the end of 2012 there was just over 728MW of installed small scale wind energy worldwide. By 2020 GlobalData is predicting that there will 4,644MW of small scale wind energy installed worldwide. This represents an even more startling Compound Annual Growth Rate of over 26%. At the end of 2012 over 80% of small scale wind power was installed in China, the USA and the UK: 266MW were installed in China, 216MW in the USA and 118MW in the UK. As one would expect given the size of the country and it’s energy needs China is expected to remain a world leader in this sector through the decade. However, it should be noted that the GlobalData report also highlights the UK as an area which can expect significant growth in small scale wind throughout the decade despite the relative maturity of the UK small scale wind sector. Indeed in 2012 the UK was ranked the world’s fastest growing small-scale wind market with over 50MW of new small scale wind developments being installed in one year.
It is our hope that the launch if SSE’s community benefit fund will help to make the public more aware of the good work that the UK’s wind industry is contributing to- on a variety of scales. And regarding the GlobalData report we would say that a bigger small and medium scale wind industry means more community benefit funding.