Reply-To: "Dave Holtom" <Dave.Holtom@Barrhill.org.uk>
From: "Dave Holtom" <Dave.Holtom@Barrhill.org.uk>
Subject: Fw: Windfarm Community Benefit Schemes in South Ayrshire
Date: Mon, 20 Nov 2006 09:59:09 -0000
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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=20
-------------------------------------------------------------------------=
-------

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..=20
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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=20
-------------------------------------------------------------------------=
-----

Financial potential

    a.. Financial potential extensive. Historical 'going rate' had been =
=A31,000 per megawatt capacity per year=20
    b..=20
    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 =A3544,000 for each year for 25 years (a total of =
over =A313 million)=20
    d..=20
    e.. Many operators are now routinely offering =A32,500 per megawatt. =
Some projects in the Highland area are examining figures of =A34,000 to =
=A35,000 per megawatt - although none have yet hit that figure=20
    f..=20
    g.. Other methods of measuring output could result in greater =
financial resources coming to Community Benefit Schemes=20
    h..=20
    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=20


-------------------------------------------------------------------------=
-------


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=20
-------------------------------------------------------------------------=
-----

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?=20
    b.. administration - who will be managing the fund=20
    c.. monitoring systems - how was the money spent=20
    d.. Data Protection and Freedom of Information=20
    e.. advertising and marketing=20
    f..=20
-------------------------------------------------------------------------=
---

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 =

-------------------------------------------------------------------------=
-----

Operational issues

  a.. Local and/or wider
  b.. 5/15 km
  c.. 60/40 %=20
-------------------------------------------------------------------------=
-----



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.=20
  c.. Models put to three local Community Councils - company model =
preferred
  d.. Company established on 8th February 2006=20



-------------------------------------------------------------------------=
-------



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.. =A3360,000 in Year 1, =A3120,000 annual thereafter
  e.. Since February, Board has distributed =A388,500 and 'set aside' =
=A3180,000




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<DIV><FONT face=3DArial size=3D2></FONT><BR></DIV>
<DIV><FONT face=3DArial size=3D2>
<H1><FONT size=3D3>Bob Baillie, South Ayrshire Council, recently gave a=20
presentation to the Economic Liaison Forum on community benefit =
schemes.&nbsp;=20
The following is Bob's Power Point&nbsp;presentation.</FONT></H1>
<H1>Windfarm Community Benefit Schemes in South Ayrshire</H1>
<P>
<UL></UL>
<LI>Progress to date - November 2006=20
<HR>

<H1>Actual and planned developments</H1>
<P>
<UL>
  <LI>
  <H2>Actual</H2>
  <LI>
  <H2>Hadyard Hill (Barr/Dailly/Pinwherry)</H2>
  <LI>
  <H2>Likely</H2>
  <LI>
  <H2>Mark=92s Hill (Barrhill)</H2>
  <LI>
  <H2>Arecleoch (Barrhill)</H2>
  <LI>
  <H2>Darsalloch (Straiton)</H2>
  <LI>
  <H2>Possible</H2>
  <LI>
  <H2>Almont (Pinwherry/Colmonell)</H2>
  <LI>
  <H2>Knoweside (Maybole/Dunure)</H2>
  <LI>
  <H2>
  <HR>
  </H2></LI></UL>
<H1>What is Community Benefit?</H1>
<P>
<UL>
  <LI>
  <H2>System to distribute funds from developers to those communities =
affected=20
  by windfarm developments</H2>
  <LI>
  <H2>No requirement of windfarm developers to make any contribution to=20
  communities affected by their proposals. Developers make any =
contributions on=20
  a voluntary basis.</H2>
  <LI>
  <H2>Experience to date (across Scotland) is that developers are keen =
to enter=20
  into partnership agreements with local communities <U>and</U> the =
local=20
  authority in affected areas</H2>
  <LI>
  <H2>Local authority role is to assist and facilitate - not to control =
or be=20
  beneficiary=20
  <HR>
  </H2></LI></UL>
<H1>Financial potential</H1>
<P>
<UL>
  <UL>
    <LI><B>Financial potential extensive. Historical =91going rate=92 =
had been=20
    =A31,000 per megawatt capacity per year</B>=20
    <LI><B></B>
    <LI><B>At this rate existing or planned developments at Barr/Dailly, =

    Colmonell/Pinwherry, Barrhill and Straiton would result in an annual =
income=20
    to the area of =A3544,000 for each year for 25 years (a total of =
over =A313=20
    million)</B>=20
    <LI><B></B>
    <LI><B>Many operators are now routinely offering =A32,500 per =
megawatt. Some=20
    projects in the Highland area are examining figures of =A34,000 to =
=A35,000 per=20
    megawatt - although none have yet hit that figure</B>=20
    <LI><B></B>
    <LI><B>Other methods of measuring output could result in greater =
financial=20
    resources coming to Community Benefit Schemes</B>=20
    <LI><B></B>
    <LI><B>The reality is that there will likely be a mix of funding=20
    arrangements, which will vary with the size of development and =
developer.=20
    Result will still be substantial resources for this area</B> =
</LI></UL></UL><BR>
<HR>
<BR>
<H1>Council policy</H1>
<P>
<UL>
  <LI>
  <H2>Need to separate Planning and Community Benefit roles</H2>
  <LI>
  <H2>Protocol paper agreed by Council in February 06</H2>
  <LI>
  <H2>Hadyard Hill Fund was established outwith policy and protocol=20
  <HR>
  </H2></LI></UL>
<H1>Distribution of funds</H1>
<P>
<UL>
  <LI>
  <H2>Presumption of local - and locally controlled - decision making=20
  processes</H2>
  <LI>
  <H2>Basic principles:</H2>
  <UL>
    <LI>clear and consistent criteria - who can apply for what types of=20
    projects?=20
    <LI>administration - who will be managing the fund=20
    <LI>monitoring systems - how was the money spent=20
    <LI>Data Protection and Freedom of Information=20
    <LI>advertising and marketing=20
    <LI>
    <HR>
    </LI></UL></LI></UL>
<H1>Distribution models</H1>
<P>
<UL>
  <LI>
  <H2>Council protocol assumes local decision making process</H2>
  <LI>
  <H2>Need for independent structure to manage Fund(s)</H2>
  <LI>
  <H2>Organisations such as Community Councils and Community =
Associations are=20
  unlikely to have the capacity =96 at least in the first instance =96 =
to administer=20
  the distribution of the substantial cash involved</H2>
  <LI>
  <H2>Any structure should be designed to effectively and efficiently =
distribute=20
  funds within the local areas but also protect the interests of the=20
  stakeholders and reduce any element of personal liability of those =
involved in=20
  the process</H2>
  <LI>
  <H2>Voluntary organisation, trust, company limited by guarantee models =

  <HR>
  </H2></LI></UL>
<H1>Operational issues</H1>
<P>
<UL>
  <LI>
  <H2><B>Local and/or wider</B></H2>
  <LI>
  <H2><B>5/15 km</B></H2>
  <LI>
  <H2><B>60/40</B> %=20
  <HR>
  </H2></LI></UL><BR>
<H1>Hadyard Hill situation - 1</H1>
<P>
<UL>
  <LI>
  <H2>SAC/SSE agreement</H2>
  <LI>
  <H2>Legal agreement which established the Fund is very specific about =
the=20
  geographical areas in which funding can be provided. Beneficiary =
organisations=20
  have to be either based in - or be able to demonstrate considerable =
work in -=20
  the Community Council areas of Barr, Dailly and Pinwherry/Pinmore. =
</H2>
  <LI>
  <H2>Models put to three local Community Councils - company model=20
preferred</H2>
  <LI>
  <H2>Company established on 8th February 2006 </H2></LI></UL><BR>
<H3>
<HR>
</H3><BR>
<H1>Hadyard Hill situation - 2</H1>
<P>
<UL>
  <LI>
  <H2>Nine Directors - two from each Community Council, two from SAC, =
one from=20
  SSE</H2>
  <LI>
  <H2>Broad criteria adopted</H2>
  <LI>
  <H2>Council offer to administer</H2>
  <LI>
  <H2>=A3360,000 in Year 1, =A3120,000 annual thereafter</H2>
  <LI>
  <H2>Since February, Board has distributed =A388,500 and =91set =
aside=92=20
  =A3180,000</H2></LI></UL><BR></FONT></LI></DIV>
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