Glen Earrach Energy, the developer of a proposed pumped storage hydro (PSH) project in Scotland, has announced that it will establish a community wealth fund worth over £20 million each year over the lifespan of the project.
The developer has confirmed that it will contribute 5% of gross margin revenues from the proposed PSH scheme to the local community, with funds being used to boost long-term investment in community interest projects in the Highlands. According to Glen Earrach Energy, this will be the largest community benefit fund of any project in the UK energy sector.
The fund will focus on investment in key areas including housing and infrastructure; jobs, skills and local enterprise; environmental stewardship and nature restoration; and community wellbeing and future generations.
A poll commissioned by Glen Earrach Energy in February of this year surveyed over 2,000 Scottish adults and found that 71% support community benefit funds as part of renewable energy projects, with 38% saying that lower local energy bills should be the top priority for these funds.
Furthermore, 73% stated that they believe that decisions on spending should be made by the community itself as opposed to government or developers, with 51% of Highland residents saying that the local area should receive the greatest share of benefit from such funds. Furthermore, the study revealed broad support for PSH projects on Loch Ness, with 56% of Highlanders stating they are in favour of such developments.
Glen Errach Energy announced that it had submitted its application for a 2GW/34GWh PSH project near Scotland’s famed Loch Ness in late April of this year, noting that the unique topography of the area and planned use of a 500m gross hydraulic head will allow for a more efficient design and more energy storage capacity than all the other planned Loch Ness storage projects combined.
The developer also notes that the project could deliver a 10% reduction in carbon emissions from the local grid and save grid operators around £2.9 billion in the first 20 years of its operation.
Roderick MacLeod, director of Glen Earrach Energy, said that the developer has listened carefully to the priorities of the community, adding that the fund is about “more than sharing the benefits of clean energy, it is about creating long-term value for the communities who make this project possible”. MacLeod added that the developer’s aim is “to create a fund that delivers real impact, not just for the next few years, but for the next hundred and beyond”.
