Private renewable profits dwarf payments made to Scottish communities, new report finds.
The report reveals Scottish communities have been paid just £147m over 5 years by onshore wind operators, compared to the £5.6bn generated in profit.
A report published today by the respected think tank, Centre for Local Economies (CLES), has found that communities in Scotland are missing out on millions of pounds each year, with the vast majority of profits generated by onshore wind benefiting corporate shareholders and private firms.
The report also notes that landowners who lease their land to windfarm developers are a major beneficiary of the renewables industry; they’re estimated to have pocketed anywhere between £190m and £380m in rent between 2019 and 2024.
The CLES research shows how Scotland’s burgeoning wind sector could become a major source of long term income for communities and government coffers, but only if they’re able to have a meaningful financial stake in future projects.
Energy campaigners at Our Power have called on the new Scottish Government to prioritise community, municipal and government ownership of renewables in order to address the enormous gulf between private profit and public benefit as the country transitions to clean energy.
The campaign said there were already many examples of community owned energy projects generating funds to support local services, but that needless barriers are preventing more from taking advantage.
Our Power is calling on the new Scottish Government to:
- Give more communities the support necessary to own their own renewable energy projects.
- Help more councils invest in renewable energy to generate income for cash strapped local services.
- Take a national public stake in all future offshore wind projects, ensuring that everyone in Scotland benefits from the profits.
- Invest directly in the offshore wind manufacturing sector to create good quality jobs here in Scotland.
It says all of these proposals are practical, popular, and deliverable within the existing devolution settlement.
Liam Hainey, Spokesperson for the Our Power campaign, said: “The Scottish Government needs to step in to address the enormous gulf between the profits generated by renewable energy and the money that’s actually staying in Scotland.
“There’s a fundamental injustice in the fact that the vast majority of profits are flowing to wealthy shareholders and overseas corporations while communities in Scotland continue to miss out.
“We’ve heard this story before; ministers need to learn the lessons of the oil and gas boom when most of Scotland was shortchanged and private interests were the biggest winners.
“There’s no excuse for the new Scottish Government to be passive, it has significant powers at its disposal to build a fairer energy system that delivers for everyone in the country.”
“This report should make it very clear to the new cabinet that securing a fair share of Scotland’s renewable energy wealth should be right at the top of its agenda.”
Liz Murray, Policy Manager at Community Energy Scotland, said: “This research shows clearly the enormous benefit that community ownership of onshore wind farms brings, compared to those owned by private companies.
“When communities own wind turbines, they have complete control over where the income goes and they choose to spend it locally on things like insulating homes, keeping shops and cafes running and providing public transport where there might not otherwise be any.
“We’re calling on the Scottish Government to urgently create the conditions for more community-owned energy, so that the benefits of Scotland’s renewable energy revolution can be shared more fairly.”
Catrina Randall, Just Transition Campaigner at Friends of the Earth Scotland, said: “This report shows that the Scottish government’s current approach to renewables is simply recreating an energy system dictated by corporate greed, serving only to line the pockets of the wealthy.
People and communities should be the first ones to benefit from the wealth of renewable energy we have here in Scotland, not landlords and company shareholders. The transition to green energy represents an incredible opportunity for Scotland, but unless urgent action is taken the public will continue to miss out on the benefits created.
The new Scottish government has ample powers at its disposal to create good green jobs, redirect renewable energy wealth, and start building an energy system that works for people not profit. Public and community ownership is an essential part of this picture.”
