News / Local ownership the key
LOCAL ownership of renewable energy projects offers the greatest economic benefit for communities, according to a study by academics from Strathclyde University.
The 49 page paper ‘The Importance of revenue Sharing for the Local Economic Impacts of a Renewable Energy Project’ is due to be published to the academic world shortly.
In it, professor Peter McGregor, professor Kim Swales and research fellow Grant Allan scrutinise two different economic benefit models currently in use: Local ownership and community benefit payments.
In a press statement issued on Monday afternoon, Shetland wind farm developer Viking Energy Partnership (VEP) said that the research demonstrated that local ownership was beneficial on several levels.
Should the proposal get the go-ahead the Shetland community was to benefit through its part ownership, additional community payment benefits as well as through job creation which, according to the research, is higher when a renewable project is owned by the local community, they said.
VEP is a partnership owned by Scottish & Southern Energy (50 per cent), Shetland Charitable Trust (45 per cent) and four private shareholders, all living in Shetland.
Project manager, Aaron Priest, said: “In 2003, Shetland Islands Council made it clear that no large-scale renewables development should take place in Shetland without the community having the opportunity to obtain a stake.
“This study validates what we inherently understood those many years ago. The unique structure of the Viking Energy project gives Shetland control over how the project might come forward and will keep the greatest benefits locally.”
Professor McGregor, said: “If you can secure local ownership or even part ownership of a major wind energy project such as the proposed Viking Energy development the income flows into the local economy can be substantial.
“Traditionally onshore wind energy projects tend not to have strong backward linkages into the local economy since turbines are mainly imported, although local contractors will be involved during the construction phase and other jobs created thereafter.
“However, the social and economic benefits of local ownership combined with community benefit should not be underestimated and can bring very significant benefits to rural communities like Shetland.”
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