Energy / ‘We need to shift the balance of fairness’, SIC leader says in speech at SSE event
COUNCIL leader Emma Macdonald says Shetland is ready to lead the way on renewable energy development – but implored governments to “do it with us – don’t do it to us”.
In a speech given at Lerwick Town Hall this morning (Tuesday) during an SSE event celebrating the completion of the Viking Energy wind farm and subsea HVDC link to the mainland, the councillor added that future developments should be “structured in a way that is fair for our community”.
Although the event was private, Macdonald has shared her speech with the media.
She told the event that the “country needed Viking, and SSE and Shetland has delivered it”.
“Shetland has long welcomed energy development and energy developers, and we can be proud of that,” the Shetland North councillor said.
“We have long been a major contributor to Scotland and the UK’s energy mix, and we can be proud of that too.
“However, as much as we should, and do, welcome today’s opening, we must also learn lessons and ensure that future developments, particularly those taking place offshore, are structured in a way that is fair for our community.
“Here in Shetland we have the most wind. That means we make the most energy.
“But there’s a flip side, because these cold winds also mean we need the most heating. And therefore we have the highest bills, and the highest rates of fuel poverty.”
Macdonald also noted that a lot of people on our islands are asking “what’s in it for me?” – “and frankly it can be a difficult question to answer”.
“It’s very difficult for local people to look at a wind farm which produces cheaper power for homes far away, when the homes right next to it pay so much,” the councillor said.
She said this is why the council has been active in Edinburgh and London promoting the idea of a ‘Shetland tariff’ in a bid to “shift the balance of fairness”.
“We are not asking for everything, but we are making clear that we believe the rules need to change so that the social and economic benefits to the host communities match the social and economic costs imposed on those host communities,” Macdonald said.
“This would be good for us, of course, but it would also be good for Scotland, and for the UK, because, to be frank, continued local opposition to wind development will eventually bring wind development to a halt.
“That would be bad for all of us, because renewable energy represents by far the largest part of our economic future.”
Macdonald added that “if you want to change the rules, you must be in the room”.
“That’s why I’m glad to be here today to celebrate this incredible achievement with SSE,” she told the event.
“That’s why I’ll always engage with developers as well as with communities, and with governments in Edinburgh and London.
“Indeed, my weekend was spent ‘in the room’ in Edinburgh, engaging with a huge number of decision-makers at the governing SNP’s annual conference.
“We discussed the unfairness which local people feel, and I think we made tangible progress in expanding the awareness, amongst those in government, of the problems we face here.”
She added that “Shetland, again, is at the forefront of our energy future”.
“But tomorrow, and the day after that, and the day after that, are days for reflection, for discussion, for negotiation,” Macdonald continued.
“Renewables are the UK’s future, and Scotland’s future. But they’re Shetland’s future too. To SSE, I say thank you for working with us. We look forward to decades of shared benefits.
“To governments in Edinburgh and in London, I say we’re on your side, we’ve got the same shared ambition, and we’re ready to lead the way. But do it with us. Don’t do it to us.”
Chief executive of energy giant SSE Alistair Phillips-Davies suggested at the Viking site last week that the wind farm’s £2.2 million-a-year community benefit fund may be a better way to directly support those in fuel poverty, rather than introducing a Shetland tariff.
He also said that any discussions about a ‘Shetland Tariff’ would need to involve competing interests from Holyrood, Westminster and the regulator Ofgem.
“What I am sympathetic to is making sure communities benefit from hosting assets, but not to the extent that makes it uneconomic to bring in the assets in the first place,” Phillips-Davies said last week.
“There is no doubt that Shetland gets huge subsidies from energy because you burn very, very expensive diesel currently.
“Equally, although the energy appears to be free because it is from wind, it is only free because we spent £500 million putting it here (…) and we are paying millions of pounds every year into a community benefit fund.”
It comes at a time when offshore wind farms are also being proposed to the east of Shetland.
In 2022 the council approved up a set of energy development principles highlighting a desire for community benefit packages from offshore wind projects.
It states: “Shetland Islands Council believes that £5,000 per installed Megawatt (indexed) or c2.5% of generation value is also an appropriate quantum for community benefit payment to the Shetland community for all offshore wind projects anywhere within the Shetland sea area and regardless of distance from shore.”
It also said the council considers that “further research and engagement should be carried out to determine whether energy contributions could be a viable and beneficial additional route to secure the most impactful community benefit outcomes from future renewable generation projects and how that would be practically implemented”.
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