The Financial Potential of Common Grazings: the Beinn Ghrideag Wind Farm

Beinn Ghrideag Location

The Beinn Ghrideag Wind Farm

• Three turbines on Sandwick North Street common grazings

• Commercial-size 3MW turbines, 145m to blade tip

• £13.7million debt finance. Construction 2012

• 100% community owned: Point and Sandwick Power (PSP)

• All profit gift-aided to Point and Sandwick Trust (PST)

Point and Sandwick Trust

• 20 member Board with balance between community and crofting interests:

• 8 Directors nominated by 6 local Grazings Committees and 2 Community Councils

• 10 Directors elected by the ordinary membership (open to all voters in Point and Sandwick district)

Use of Profit from Beinn Ghrideag

• Community Plan 2009, updated 2011

• Maximum 30% invested in Point and Sandwick area (eg, home energy efficiency program)

• Minimum 70% invested in wider Western Isles community (eg, job creation, hospice, life-skills for special needs, arts centre, drugs and alcohol rehab, St Kilda Centre project, etc)

Size of Profit from Beinn Ghrideag

• £160k average annual profit per MW

• £480k average annual profit per turbine

• £1.4 million average annual profit

• £36 million profit over 25 years

Assuming 36% capacity and £95/MWhr

Comparison with Private Development

Typical Wind Farm Community Fund

•£4,000 pa per MW•£12,000 pa per turbine•£36,000 pa for 3 turbines

= £900,000 community fund over 25 years

Beinn Ghrideag

•£160,000 pa per MW•£480,000 pa per turbine•£1.4 million pa for 3 turbines= £36 million community fund over 25 years

Potential of Common Grazings in the Western Isles

• Example: 10 crofting townships using their common grazings for 3 turbines each

• 30 turbines (90MW)

• £14 million pa community income

• Compare with: £360,000 pa from private scheme • £10 million pa average HIE/WIE expenditure in

Western Isles

Potential of Common Grazings in the Highlands and Islands

• Example: 50 crofting townships with 3 turbines each

• 150 turbines (450MW)

• £70 million pa in community income

• Compare with: £1.8million from private development

• HIE 2012/13 budget = £75.6 million

Conclusion

• Income from commercial size, community-owned wind farms can transform Highlands and Islands rural economy

• ONLY Grazings Committees and crofting communities can unlock this potential

• Enabling role for Assessors and the Crofters Commission?