£4.5m windfarm deal is welcome milestone

Significant steps forward on community benefit from the proposed Spiorad na Mara windfarm, off the west side of Lewis, were announced this week, to general approval.

Once the windfarm starts generating in 2031, according to current plans, the developers will pay £4.5 million a year (linked to inflation) in community benefit to the area covered by two local government wards, stretching from Ness to Uig, for a period of 35 years.

However, this does not preclude negotiations over other benefits during the construction phase while the agreement specifically does not cover payments related to landfall sites essential to the project’s development.

Hopes were expressed this week that the announcement will demonstrate that constructive negotiations with the developers, led by Northland Power, are producing positive outcomes and will encourage further discussions on supply chain and issues, as well as community payments.

The agreement announced this week is a tribute to the work of the West Side Estate Group which is made up of three community-owned estates – Galson, Barvas, Carloway - as well as one privately owned one, Dalmore, which cover the area in closest proximity to the proposed development.

A statement from the group said: “This marks an important milestone in discussions which have been taking place between the parties over recent years and demonstrates a clear commitment by the developer to residents in the areas located closest to the project, should the project proceed.

“West Side Estate Group stresses it has not taken any view on supporting the project but has had a clear objective to secure a commitment of this type from the developer as early as possible in the project timeline”.

Kenny Maclennan, chair of Urras Oighreachd Chàrlabhaigh, said: “As well as the community benefit fund, West Side Estate Group has been pressing the developer for more extensive and regular consultation with other organisations and communities prior to the consenting process starting.”

West Side Estate Group say that they foresaw the need for pro-active engagement with the Spiorad na Mara developer and that “this collective approach has presented a strong, united front to have challenging discussions with the developer when necessary and deliver maximum returns for the communities affected by Spiorad na Mara if the project proceeds.

“The Group members’ familiarity with commercial negotiations and all aspects of everyday estate management, as well as experience of renewable energy development, has proved to be a powerful combination in the lengthy discussions with Northland Power and ESB”.

Tanya Davies, project director for Spiorad na Mara, said: “This is a significant milestone which underscores our commitment to ensuring that the project leaves a lasting legacy in the communities closest to the project.

“The commitment represents a substantial investment to be made into local communities for the entire duration of the operational lifetime of the project, expected to be at least 35 years, should it progress.”

She added: “We are very grateful to the West Side Estates Group for their shared commitment and determination in reaching this stage and helping to ensure that communities on the west coast of the island stand to benefit meaningfully from hosting the proposed project.

“Now that we have reached this stage, we look forward to working closely with local communities and stakeholders to ensure that local voices are at the heart of shaping and overseeing the responsible management and distribution of the benefits”

Ms Davies stressed: “Community benefit fund arrangements are separate from the planning process, with no provisions associated with the fund either requiring support for the project or prohibiting any objections to it”.

Western Isles MP, Torcuil Crichton, welcomed the agreement and highlighted the significance of community land ownership in making it possible. However, he also made clear that it must be the start of a “jigsaw” of benefits which islanders would expect to be pursued.

Mr Crichton also noted that this is a voluntary agreement with no statutory underpinning. Nor indeed was there any conditionality in the ScotWind leases which requires developers to enter into this kind of agreement – an omission which, he said, must not be repeated.

The MP said: “That there is any proposal at all is testimony to the power of community land ownership and the co-operation and negotiating skill of the West Side Estate Group. This is a good start but must be seen as the first stage of benefits which should accompany any major renewable development in the islands.

"It is unfortunate that the ScotWind leasing process failed to address the issue of community benefit or participation, in any way. This glaring omission should not be repeated in future and it should not be left to communities alone to negotiate whatever they can secure.”

Mr Crichton added: "There now needs to be a serious discussion involving island communities, the local authority and both governments on how the whole of Na h-Eileanan an Iar can maximise the benefits which should accompany onshore and inshore developments.”