8th November 2026
Caithness has become an important centre for renewable electricity generation. Wind farms across the area produce electricity that contributes to Britain's energy supply, but there is an interesting question that deserves more attention locally. How much of the wealth generated by these developments can be turned into lasting benefits for the people who live here?
Wind farm community benefit payments have already provided valuable support to local organisations, sports clubs, community facilities, educational activities and businesses. These are worthwhile contributions, particularly in rural communities where funding can be difficult to obtain.
However, there is another possibility. Instead of spending all the money as it arrives, could communities invest a substantial proportion of their wind farm payments in creating their own electricity-generating businesses, with the longer-term objective of reducing energy costs for local households and businesses?
It would mean thinking beyond the next grant application and looking 10, 20 or even 30 years ahead.
Building something that lasts
Consider a relatively straightforward proposal.
For the first five years, participating communities could agree to place, say, 75% of their annual wind farm community benefit payments into a dedicated Caithness Local Energy Investment Fund. The remaining 25% could continue supporting immediate community needs.
The investment fund would accumulate capital to develop renewable energy projects, potentially combining wind generation, solar panels, battery storage and other suitable technologies.
After five years, the fund would have a substantial starting capital base. It could then use that money to attract additional investment, borrowing, government support or partnerships with energy companies.
The objective would be to establish locally owned assets that generate electricity and income for many years.
Importantly, the investment would not stop after five years. Income from the projects could be reinvested, alongside continuing community benefit contributions, allowing the fund to grow and support further developments.
The principle is simple: use today's community payments to create assets that benefit tomorrow's residents.
There is already a starting point in Caithness
This is not an entirely new concept.
The Baillie Wind Farm Community Benefit Fund currently receives £100,000 annually for the benefit of West Caithness. A separate Caithness Business Fund receives a contribution from Baillie Wind Farm of £25,000 a year, index-linked, helping support local businesses and employment.
These arrangements demonstrate that wind farm payments can support both community projects and wider economic development.
Across Scotland, the Scottish Government has also recognised the potential for communities to invest their benefit payments in renewable energy ownership. Its good practice guidance specifically identifies the possibility of capitalising future community benefit payments to help finance shared ownership opportunities.
In other words, the principle behind this proposal already has official recognition.
What could Caithness actually invest in?
There would be no need to begin with another large wind farm.
Smaller projects might offer a more manageable starting point.
Industrial buildings, community facilities, farms and commercial premises could provide opportunities for solar installations. Battery storage could help make better use of electricity when generation exceeds immediate demand.
Some locations might be suitable for smaller wind developments or hydroelectric schemes.
Another possibility would be taking a financial stake in an existing or proposed renewable energy development, rather than undertaking all the construction and operational responsibilities independently.
A local energy enterprise could eventually employ people in installation, electrical engineering, maintenance, battery management and energy services.
That would create an opportunity to develop skills and businesses locally rather than simply importing contractors whenever new energy infrastructure is required.
Would household electricity bills actually fall?
This is perhaps the most important question.
Generating electricity locally does not automatically mean that nearby households receive cheaper electricity. The national electricity market, grid charges, supplier arrangements and licensing requirements all matter.
However, there are ways of getting closer to that objective.
A community energy company could supply electricity directly to suitable local businesses through private connections, enter into power purchase agreements, or sell electricity into the wider market and use the resulting income to support eligible local energy schemes.
There could also be opportunities for participating households to benefit through community energy arrangements, subject to the necessary regulatory and commercial agreements.
The aim should be to make the financial benefit visible to residents, rather than simply accumulating money in another fund.
If the community owns an electricity-generating asset, it should be possible to establish clear rules about how the resulting income is distributed and reinvested.
b[]Why think in terms of 20 or 30 years?[/b]
One difficulty with many community funding arrangements is that money is distributed and spent each year.
A new piece of playground equipment, a refurbished community hall or support for a local event can all be valuable. But once the money has been spent, the fund has to start again with the next annual payment.
There is nothing wrong with these projects, but there is a question about whether more could be achieved by investing some of the money in assets that continue producing income.
Imagine a community energy company that has gradually built up a portfolio of generating equipment, batteries and commercial energy agreements.
It could eventually become a significant local enterprise, with income available to support further investment, community activities and potentially lower energy costs.
The original community benefit payments would have helped establish something that could outlast the wind farm projects that funded it.
A Caithness-wide opportunity?
There may be merit in exploring whether Wick, Thurso and the smaller villages and rural communities could work together.
Rather than every community trying to establish its own separate energy business, a shared investment organisation could pool expertise, administration and financial resources.
Individual communities could retain a say in how their contributions are invested and how the benefits are distributed.
There would need to be proper financial scrutiny, independent governance and a clear investment strategy. Not every renewable energy proposal would be commercially viable, and communities should not risk their funds on projects without proper feasibility studies.
Local Energy Scotland already provides advice and support for community-owned renewable energy projects. Its Community Energy Growth Fund has included support for wind, solar, hydro and battery storage developments.
The expertise and funding mechanisms therefore exist, although individual funding programmes and their availability need to be checked.
[b]From receiving community payments to owning an energy future[b/b]
Caithness has provided energy for Britain for generations. The area has experienced the benefits of employment and investment, but also the consequences when major industrial activities decline.
Renewable energy offers another opportunity, but simply hosting more wind turbines does not necessarily guarantee lasting local prosperity.
Perhaps it is time to consider a different approach to community benefit payments.
Instead of treating them solely as money to be distributed and spent, communities could regard them as the starting capital for a long-term local investment programme.
A proportion of the money would still be available for immediate needs, but the larger share would be used to build an economic asset.
The question for local communities, wind farm operators and Highland Council is worth asking:
Would we rather spend all our community benefit money today, or invest some of it in creating something that could help reduce electricity costs and generate income for the next generation?
Caithness has the natural resources, an established energy industry and existing community funding arrangements. What it could explore next is whether those ingredients can be brought together to create a locally owned energy enterprise.
The real measure of success would not be how many grants were distributed in a particular year, but what lasting assets and opportunities remained in Caithness 20 or 30 years from now.