​Windfarm windfall for crofting villages

While it was previously understood that a ball-park figure of around £1 million a year would be shared among the grazing committees on whose land the turbines will be sited, further details have now emerged over how that will be distributed.

The payments are through a rental agreement and are based on factors including the number of turbines on common grazing land and access roads.

Around 18 individual common grazing committees are affected - including Stornoway General - and during the operational phase of the wind farm, the townships will receive basic, guaranteed payments totalling £765,000 in all.

However, additional payments, potentially in the region of £329,000, will also be paid in annual variable top up payments, based on the total megawatt production of the wind farm and its income.

A document, produced by developer Lewis Wind Power, describes the figures as being “illustrative” and are based on a “conservative” estimate of the production performance of the 33 turbine wind farm.

The figures reveal that the Sandwick and Sandwick East Street common grazings areas, which has the largest number of turbines set for development at 11, are in line for the biggest share of the basic payments, receiving nearly £178,000 per year, with the potential of up to another nearly £77,000 being paid in variable top up payments.

Closely behind are the Sheshader grazings with ten turbines, which could yield a basic payment of nearly £160,000, and up to nearly £69,000 in annual top up payments.

Aignish is the only other grazings area set to receive an annual basic payment in excess of £100,000, at £108,000, with Melbost and Branahuie in line for a basic annual payment of nearly £99,000.

The common grazings on which the wind farm’s substation is to be sited will receive additional specific rent, LWP has confirmed.

It is understood that the figures were previously circulated to the grazings committees and are now being made public for the first time.

Lewis Wind Power is 50/50 joint venture between EDF Renewables and ESB Energy, and a spokesperson for the company confirmed this week that the payments are the result of the lease LWP has with Stornoway Trust for the wind farm development land, with crofters sharing the rent and payments with the Trust.

In addition, the wind farm development could see up to 20 per-cent “community ownership” and with the establishment of an independently administered community fund equivalent to £5,000 per megawatt per annum resulting in around £1million a year going to local projects and initiatives.

Darren Cumming of LWP commented: “We have worked closely with all partners with an interest in the Stornoway Wind Farm project, from the local community to the Stornoway Trust, to maximise the benefits it brings to the Western Isles. This will continue to be the case as the wind farm progresses through construction, operation and beyond.

“The payments mentioned within this document are illustrative of the potential rental income that would flow to the grazing committees. It is a legal obligation we have through our landlord, the Stornoway Trust, where the rents we pay the Trust for the land are split 50/50 between them and the crofters.

“In addition to ongoing donations and sponsorship for local community groups and projects, once the project is operational a community benefit fund will see around £1million going back into the communities. This is also in addition to the 20 per cent community ownership offering of Stornoway wind farm. We look forward to progressing those discussions over the coming years as the project moves forward.”

Stornoway Trust Factor Iain MacIver stated: “The magnitude of what the Trust has negotiated with the co-operation of Lewis Wind Power should not be overlooked. The deal took landowner/developer relationships to a new level, much to the angst of other aspiring developers and the envy of others at that time.

“While the crofter’s entitlement to a fair share of the rent negotiated was protected under crofting law, community benefit back then was, for many, handed out at the whim of the developer until our negotiated entitlement was secured as part of our lease agreement in 2002.

“The figures should be seen as a conservative guide to what the crofters should expect from their annual rental entitlement and were agreed by them during the consultation process, having had the benefit of free legal and financial advice in anticipation of the Scottish Land Court being satisfied that they were getting a fair and reasonable recompense for their co-operation.

“Now captured under the Section 19A provisions of the Crofting Act, the values are index linked and should be significantly higher by the time they will come into effect. During the life of the project the crofters will also be entitled to share in any uplift payments which may come into effect on the same 50-50 basis with the Trust.”