Funding for UK's largest community windfarm

Initially conceived in 2005 when Point and Sandwick Power was formed, Beinn Ghrideag obtained full planning consent in 2012 and is due for completion in September 2015. PSDT, a charity whose aim is to promote stronger communities and more employment opportunities in the districts of Point and Sandwick and throughout the Western Isles, will reinvest 100% of the farm’s profits into a variety of community projects over the next 25 years.

Based on a five-year business plan, Beinn Ghrideag Community Wind Farm will look to support eight key community projects, including the insulation of 350 homes; the promotion of local crofting skills and renovation of local villages; finding employment for at least 100 young adults; and funding for the local Bethesda Hospice. In addition, building, operating and maintaining the wind farm itself will create at least three full-time jobs initially and help to sustain four further jobs in the local maintenance and support unit. In the first five years, the reinvestment of wind farm income into the revenue projects is forecast to also create eight new jobs and help to sustain 57 existing ones. Over 25 years, the wind farm is forecast to produce distributions of circa £48million, equivalent to £1.9 million per annum.

As well as Santander Corporate & Commercial, the project received equity investment from th Renewable Energy Investment Fund, which is administered by Scottish Enteprise, and Social Investment Scotland. Beinn Ghrideag will be an important milestone in the Scottish Government’s community energy strategy, which is targeting 500MW of locally owned renewables by 2020. Grant funding also came from BIG Lottery.

Calum MacDonald, Development Director of Point and Sandwick Power, said: “This is a breakthrough project for community energy in terms of its size and also the innovative way in which it has been financed. It has been a long journey since we started back in 2005 and we have had to overcome many the obstacles along the way. We are very grateful for the generous advice and guidance we have received from the staff at Santander and also from the key Governement and Lottery funders. It was not a simple or easy project and without their fantastic support and commitment we would never have succeeded. This demonstrates that there is no limit as to what can be achieved by community enterprises in the renewables sector and we hope that our success will encourage other communities in the islands, in Scotland and right across Britain to think big.”

Keith Wilson, Relationship Director, Santander Corporate & Commercial, said: “Beinn Ghrideag is a fantastic achievement, not only for Point and Sandwick but for the community renewable sector generally. We have been impressed both by the drive and determination Point and Sandwick has shown in getting Beinn Ghrideag to financial close and by the strength and depth of their social investment plan. As the largest 100% community owned wind farm in the UK, they have redefined what it possible in this sector. Santander is delighted to be part of this project and to have had this opportunity to enhance its own social investment credentials.”

Fergus Ewing, Energy Minister said: “Our ambition is for communities across Scotland to share in the rich economic and social rewards of our country’s outstanding renewable resources. Community and local ownership of renewable energy is a high priority for the Scottish Government and is an intrinsic part of our Renewables Routemap for Scotland. Point and Sandwick is exemplary of the huge benefits that local energy ownership can bring, supporting the needs of the community for decades to come, whilst creating and securing jobs, underpinning regeneration and funding energy efficiency improvements for hundreds of local people.”

Andrew Smith Head of the Renewable Investment Energy Fund said: “The work by Point and Sandwick Development Trust clearly shows how local communities can work in partnership with the private and public sectors to drive forward renewable energy projects and bring real benefits to the local community and ultimately the national economy. It’s the type of project we’re starting to see in increasing numbers across Scotland, as we work towards our aspirations of becoming a low carbon economy.”

Alistair Johnstone, Chief Investment Officer at Social Investment Scotland, said: “Social Investment Scotland is delighted to be supporting this large project. In recent months we have supported a number of communities across Scotland who have carried out community renewable energy projects and this project in Beinn Ghrideag on the Isle of Lewis will be the largest 100% community owned wind farm in the UK and is particularly exciting - not only because of the obvious environmental benefits but also for the way in which it will empower the local community to invest in a sustainable way in a range of community initiatives.”