Subject: Fw: Windfarm Community Benefit Schemes in South Ayrshire
From: "Dave Holtom" <[email-masked]>
Date: Mon, 20 Nov 2006 09:59:09 -0000

Bob Baillie, South Ayrshire Council, recently gave a presentation to the Economic Liaison Forum on community benefit schemes.  The following is Bob's Power Point presentation.
Windfarm Community Benefit Schemes in South Ayrshire

a.. Progress to date - November 2006 
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Actual and planned developments

  a.. Actual
  b.. Hadyard Hill (Barr/Dailly/Pinwherry)
  c.. Likely
  d.. Mark's Hill (Barrhill)
  e.. Arecleoch (Barrhill)
  f.. Darsalloch (Straiton)
  g.. Possible
  h.. Almont (Pinwherry/Colmonell)
  i.. Knoweside (Maybole/Dunure)
  j.. 
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What is Community Benefit?

  a.. System to distribute funds from developers to those communities affected by windfarm developments
  b.. No requirement of windfarm developers to make any contribution to communities affected by their proposals. Developers make any contributions on a voluntary basis.
  c.. Experience to date (across Scotland) is that developers are keen to enter into partnership agreements with local communities and the local authority in affected areas
  d.. Local authority role is to assist and facilitate - not to control or be beneficiary 
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Financial potential

    a.. Financial potential extensive. Historical 'going rate' had been £1,000 per megawatt capacity per year 
    b.. 
    c.. At this rate existing or planned developments at Barr/Dailly, Colmonell/Pinwherry, Barrhill and Straiton would result in an annual income to the area of £544,000 for each year for 25 years (a total of over £13 million) 
    d.. 
    e.. Many operators are now routinely offering £2,500 per megawatt. Some projects in the Highland area are examining figures of £4,000 to £5,000 per megawatt - although none have yet hit that figure 
    f.. 
    g.. Other methods of measuring output could result in greater financial resources coming to Community Benefit Schemes 
    h.. 
    i.. The reality is that there will likely be a mix of funding arrangements, which will vary with the size of development and developer. Result will still be substantial resources for this area 

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Council policy

  a.. Need to separate Planning and Community Benefit roles
  b.. Protocol paper agreed by Council in February 06
  c.. Hadyard Hill Fund was established outwith policy and protocol 
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Distribution of funds

  a.. Presumption of local - and locally controlled - decision making processes
  b.. Basic principles:
    a.. clear and consistent criteria - who can apply for what types of projects? 
    b.. administration - who will be managing the fund 
    c.. monitoring systems - how was the money spent 
    d.. Data Protection and Freedom of Information 
    e.. advertising and marketing 
    f.. 
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Distribution models

  a.. Council protocol assumes local decision making process
  b.. Need for independent structure to manage Fund(s)
  c.. Organisations such as Community Councils and Community Associations are unlikely to have the capacity - at least in the first instance - to administer the distribution of the substantial cash involved
  d.. Any structure should be designed to effectively and efficiently distribute funds within the local areas but also protect the interests of the stakeholders and reduce any element of personal liability of those involved in the process
  e.. Voluntary organisation, trust, company limited by guarantee models 
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Operational issues

  a.. Local and/or wider
  b.. 5/15 km
  c.. 60/40 % 
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Hadyard Hill situation - 1

  a.. SAC/SSE agreement
  b.. Legal agreement which established the Fund is very specific about the geographical areas in which funding can be provided. Beneficiary organisations have to be either based in - or be able to demonstrate considerable work in - the Community Council areas of Barr, Dailly and Pinwherry/Pinmore. 
  c.. Models put to three local Community Councils - company model preferred
  d.. Company established on 8th February 2006 

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Hadyard Hill situation - 2

  a.. Nine Directors - two from each Community Council, two from SAC, one from SSE
  b.. Broad criteria adopted
  c.. Council offer to administer
  d.. £360,000 in Year 1, £120,000 annual thereafter
  e.. Since February, Board has distributed £88,500 and 'set aside' £180,000