Community benefits represent a significant opportunity to deliver long-term, sustainable outcomes for and by communities. In addition to considerations around the immediate impact, the review should also take a longer-term perspective, asking whether the package is achieving a lasting legacy and, if not, how it might do so.

The following questions may help:

  • Are funded projects meeting the needs of particularly disadvantaged sections of the community, for example those without access to transport? This might be through a community transport service, community ownership of the local shop and improvements to the range of services and goods it offers or, for example, the provision of a delivery service.
  • Is the community benefit package supporting the infrastructure that is needed to address some key challenges the area faces? For example, is it addressing out-migration of young people by enabling people to work and raise a family in the area? This might mean supporting apprenticeships, affordable housing, childcare services or new business units for example.
  • To what extent is the investment responding to changing local circumstances, need and opportunities as they arise? For example, opportunities to invest in local enterprises, to attract new employers, or responding to imminent or sudden closure of key local services and facilities.
  • To what extent are funded projects or services starting to sustain themselves by securing income streams beyond any initial investment? Are they generating their own earned income through trading or contracts for the provision of services?

Some communities may take a bit of time to fully understand the potential of the community benefits package, and to develop the experience, capacity and ambition required to enable the support available to achieve that potential. For some, making funding available early on through open grant-making rounds can support some initial activity, and through that some longer-term opportunities or needs may become apparent.

This initial support can also begin to achieve some of the community’s ‘wish-list’, releasing or building confidence and ambition for longer term, more strategic investments. Where the community is involved in distributing funding, they may wish to investigate alternative methods of distribution (for examples of distribution mechanisms see the Developing a Fund Strategy Annex).

Investing some funds through a community endowment may be a good option if the community requires time to plan more significant and potentially transformative projects to a point where they are ready to be delivered. Returns can be generated on the invested funds in the meantime. Endowed funds can also provide an income into the community beyond the lifetime of the renewable energy project, once it is decommissioned and annual payments cease, bringing truly long-term value for money.

Communities are also encouraged to consider how community benefits can earn further sustainable income for that community. One way to achieve this is to explore opportunities to invest in renewable energy schemes or other enterprises that generate both a social and financial return. This might include those elsewhere in the region, Scotland or even UK. This type of ‘social investment’ usually requires investment in the initial, higher risk stage of such ventures and a long term and entrepreneurial mind-set as to what can be achieved. Not all such investments will pay off but with a considered approach, and the right skills and expertise on the decision-making group, there is a good chance they can provide a long-term legacy for the community. Support is available through the Scottish Government’s CARES to investigate such opportunities – see the Local Energy Scotland website for details.