Muaitheabhal Community Windfarm Trust (MCWT) and Western Isles Development Trust (WIDT) recently met with representatives of Beinn Mhor Power (BMP), the company which owns the recently consented windfarm on the Eisgein Estate in Lochs, Isle of Lewis.
“1.5% of the revenues”
The discussion between the parties centred on the construction and commissioning of the windfarm and how to ensure the maximisation of community benefits, whilst minimising any potential risks to the community.
Of the 33 consented turbine sites, four turbines sites will come into community ownership under MCWT. This will result in sites for 14.4 MW being owned by the local community. It is believed that this will result in the establishment of the largest community-owned windfarm in the UK. In addition the community, through both MCWT and WIDT, will benefit from an annual income stream equivalent to 1.5% of the revenues from the main windfarm.
During the meeting, representatives of BMP outlined their intention to bring in an experienced and financially viable development company to undertake the construction and operation of the windfarm. This process will entail the transfer of rights to that company. BMP is in discussions with a number of potential developers, each with technical expertise and financial muscle.
“Community benefit is secured”
A satisfactory conclusion is anticipated over the next two months. Legal agreements will ensure that all community benefits previously negotiated will be secured as part of this sale.
The parties agreed that building and operating a windfarm is not a simple, straight-forward operation. It is a technically complex project that carries a high level of risk, particularly in the current difficult financial climate.
“Outer Hebrides community”
As such both MCWT and WIDT need to ensure that a developer with the right technical skills; the finances to build the windfarm and one who is keen to maximise community benefit is secured.
The MCWT and WIDT representatives at the meeting agreed that BMP’s intended route offers the most appropriate option, in the present difficult financial climate, for securing the safe and timely construction and subsequent operation of the windfarm. This route will result in significant capital receipts without risk for the members of the MCWT, the community of Lochs and the wider Outer Hebrides community.
This proposal also allows the maximisation of community benefits through the securing of early capital receipts on top of the significant community ownership and benefits package previously negotiated.
Speaking after the meeting, the Chairman of MCWT, Mr Donald MacKay said: “Having discussed the changes to the development with all other interested parties, we are happy that it will not lead to any material change in the benefit that accrues. The terms agreed with the developer will apply to any future third party. MCWT will shortly prepare to hold elections to the Trust to bring it up to its full membership as stated in the Trust Deeds. The elections will be held under the auspices of the Local Authority”
“Benefit to the islands“
On behalf of WIDT, Chairman Mr Peter Carlin stated: “Following the Scottish Government’s consent of the wind farm in early 2010, it is essential that we now see the project moving rapidly to construction and implementation. Our meeting today was important in helping our understanding of the process over the next period. From a WIDT perspective it is essential that community benefit opportunities from the project are maximised. From my perspective it is positive that the previously negotiated benefit is secure and that the community will receive an early benefit from potentially significant capital receipts. Going forward, WIDT will continue to engage with all developers in the islands to discuss benefit potential and find ways to maximise the benefits coming to our communities”
On behalf of BMP, Mr Nicholas Oppenheim, said: “We are delighted to be the catalyst that will bring a substantial number of new jobs and significant financial benefit to the islands“
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