The Financial Potential of Common Grazings: the Beinn Ghrideag Wind Farm

Beinn Ghrideag Location

The Beinn Ghrideag Wind Farm Three turbines on Sandwick North Street common grazings Commercial-size 3MW turbines, 145m to blade tip £13.7million debt finance. Construction % community owned: Point and Sandwick Power (PSP) All profit gift-aided to Point and Sandwick Trust (PST)

Point and Sandwick Trust 20 member Board with balance between community and crofting interests: 8 Directors nominated by 6 local Grazings Committees and 2 Community Councils 10 Directors elected by the ordinary membership (open to all voters in Point and Sandwick district)

Use of Profit from Beinn Ghrideag Community Plan 2009, updated 2011 Maximum 30% invested in Point and Sandwick area (eg, home energy efficiency program) Minimum 70% invested in wider Western Isles community (eg, job creation, hospice, life-skills for special needs, arts centre, drugs and alcohol rehab, St Kilda Centre project, etc)

Size of Profit from Beinn Ghrideag £160k average annual profit per MW £480k average annual profit per turbine £1.4 million average annual profit £36 million profit over 25 years Assuming 36% capacity and £95/MWhr

Comparison with Private Development Typical Wind Farm Community Fund £4,000 pa per MW £12,000 pa per turbine £36,000 pa for 3 turbines = £900,000 community fund over 25 years Beinn Ghrideag £160,000 pa per MW £480,000 pa per turbine £1.4 million pa for 3 turbines = £36 million community fund over 25 years

Potential of Common Grazings in the Western Isles Example: 10 crofting townships using their common grazings for 3 turbines each 30 turbines (90MW) £14 million pa community income Compare with: £360,000 pa from private scheme £10 million pa average HIE/WIE expenditure in Western Isles

Potential of Common Grazings in the Highlands and Islands Example: 50 crofting townships with 3 turbines each 150 turbines (450MW) £70 million pa in community income Compare with: £1.8million from private development HIE 2012/13 budget = £75.6 million

Conclusion Income from commercial size, community- owned wind farms can transform Highlands and Islands rural economy ONLY Grazings Committees and crofting communities can unlock this potential Enabling role for Assessors and the Crofters Commission?