This was developed and written by Foundation Scotland and commissioned by the Scottish Government and Energy Saving Trust. It was produced by Local Energy Scotland and published in 2021.

1. About Community Benefits in Scotland

Community benefits are now a common – near consistent – feature linked to renewable energy projects across Scotland, in particular onshore wind farms and hydropower schemes but increasingly offshore wind and solar projects too. Owners of such projects, whether private corporations or community-owned not-for-profit bodies, will typically commit a proportion of the project income for the benefit of the local area, usually over the operating lifetime of the project. The searchable Register of Community Benefits in Scotland, hosted by Local Energy Scotland, showed that as at July 2019 over £19.5 million in community benefits were being paid out by the owners of around 230 renewable energy projects across Scotland over the previous twelve months.

Community benefits offer an unprecedented opportunity to communities that can be directed towards local priorities for public benefit. These are also provided by the private sector, thereby offering significant flexibility in how they are planned for, distributed, and managed in comparison to most public sector monies.

Nevertheless, alongside the opportunities they present, significant challenges remain in ensuring community benefits are set up and delivered in an accountable way that optimises their impact and meets the needs of local communities.

The renewables industry has expanded rapidly over the past two decades, bringing millions of pounds of investments to predominantly rural communities throughout Scotland. The Scottish Government’s commitment to meet 50% of the country’s energy requirements from renewables by 2050 means that investment in renewables is set to continue. There is an need to learn from practice in the delivery of community benefits to-date and to promote high standards of fund governance in order to maximise the benefits to communities across Scotland. Improving understanding between the various stakeholders involved is essential in this regard.

There are many examples of existing arrangements operating in different contexts across the country, and some case studies are provided on the Local Energy Scotland website. Some are examples of renewable energy businesses and communities working in collaboration, and others where renewable energy businesses have been more “hands-off”, giving communities significant latitude in how the benefits are designed and disbursed.

2. Opportunities and Challenges in Community Benefits

Some of the opportunities and challenges involved in setting up and delivering community benefits are detailed further in this section.

Opportunities

Challenges