Energy / No major community benefit fund projects expected anytime soon
PEOPLE should not expect major strategic initiatives funded by the main Viking Energy community benefit fund “for a while”.
That is the view of Shetland Community Benefit Fund chair Chris Bunyan.
It comes as SSE’s 103-turbine Viking Energy wind farm in Shetland’s Central Mainland is now fully operational – as is the subsea cable which will allow power to be exported to the mainland, or brought north to Shetland.
Work on connecting Shetland’s own energy network to the new set-up is only expected to finish later in 2025, at which point Lerwick’s power station will go into standby mode.
The company will pay out £5,000 per installed megawatt a year in community benefit to Shetland – resulting in around £2.2 million per annum.
Shetland Community Benefit Fund is an independent organisation which will receive and then distribute the money.
However there has been frustration in the community that SSEN had already claimed around £2 million in “constraint” payments during August – around the same value of the annual community benefit.
Prior to the main benefit fund starting an advance grant scheme worth around £400,000 a year ran during the wind farm’s construction, with community councils deciding on applications.
That type of scheme will continue but there will also be a new “strategic” fund, split into two elements – a reactive fund and a proactive fund.
The priorities of the strategic fund include encouraging more younger people wanting to stay and/or come back to Shetland, better transport links, improved broadband and housing supply, and reduced cost of living.
A public consultation was previously carried out on the main fund.
Regarding the main proactive fund, Bunyan said: “We have been talking to stakeholders involved in our main priorities both to learn about the issues and problems they face, but mainly to stress what the fund can do and to encourage them to approach us with ideas and projects.
“We will also be publicising the fund to encourage people to talk to us with ideas or possible projects.”
However, he said it will be “impossible to say” when projects will get underway.
“We do hope to have a few schemes underway fairly soon after the fund opens, but don’t expect major strategic initiatives for a while,” Bunyan added.
“We are encouraging people to approach us with ideas or initiatives which we can discuss and possibly develop into full applications.”
SSEN chief executive Alistair Phillips-Davies suggested at the Viking site last week that the community benefit fund may be a better way to directly support those in fuel poverty, rather than introducing a so-called “Shetland tariff” offering cheaper bills.
Meanwhile SSEN has now opened a separate community benefit fund for the north of Scotland through its transmission arm.
Organisations can now apply for a share of £2 million for projects that will aid skills development, support the culture of local communities and help alleviate fuel poverty.
SSEN said the fund marks the “beginning of what could be over £100 million in support for communities in the north of Scotland, delivered as part of the largest electricity infrastructure programme the region has ever seen”.
Applications can be made for funds ranging from £40,000 to £500,000. There will be a regional fund as well as local ones with money available solely to communities who are situated close to new electricity infrastructure.
The new subsea electricity cable between Shetland and mainland Scotland was used as one example of transmission infrastructure which would be linked to the fund.
Regional fund chair Peter Peacock said: “This is first and foremost a great opportunity for communities in the north of Scotland, allowing charities and community organisations to deliver transformational impact and improve places and the lives of people.
“Funding can be a tool for building wealth within communities, empowering local people to create new opportunities, meet objectives, and strengthen community assets.”
More information on SSEN Transmission’s community benefit fund can be found here.
Become a member of Shetland News
Shetland News is asking its many readers to consider paying for membership to get additional features and services: -
- Remove non-local ads;
- Bookmark posts to read later;
- Exclusive curated weekly newsletter;
- Hide membership messages;
- Comments open for discussion.
If you appreciate what we do and feel strongly about impartial local journalism, then please become a member of Shetland News by either making a single payment, or setting up a monthly, quarterly or yearly subscription.
Already a member? Sign in to hide this message.
