Hydro pump project announce '£20m a year' Highland community fund
Glen Earrach Energy (GEE) said that its commitment is expected to deliver more than £20 million a year throughout the operational lifetime of the project.
GEE claims its proposed Community Wealth Fund will be the largest of its kind anywhere in the UK energy sector.
The community fund would focus on providing financial support to go towards key issues like housing, local infrastructure, jobs, nature restoration, and community wellbeing projects.
READ MORE: Scottish train engineering firm lands major contract creating 40 new jobs
The proposed 2GW pumped storage hydro (PSH) project is still subject to planning permission and would be located at Balmacaan Estate, close to Loch Ness, and aims to generate 34 GWh of clean energy.
The announcement follows the publication of a new developer-led research report, the first of its kind in the UK energy sector, which brings together national polling, public consultation, and direct input from communities.
GEE said the report marks a major step in the development of the community fund as it sets out local priorities, design principles, and governance themes that reflect what the developers have heard during consultations.
Rachel Searle, head of Communities and Impact at Foundation Scotland, welcomed the 'pioneering' announcement, saying GEE has gained a better understanding of the area by engaging with its local communities.
She said: 'At a time when the wider policy environment of community benefit has become quite contested it is exciting to see such a pioneering and ambitious community benefit opportunity emerging from Glen Earrach Energy, which recognises the wide ranging and sustained benefits that can be achieved at different levels with a project of this scale.
'Glen Earrach Energy have achieved this through their own rooted understanding of the area, their considered engagement with stakeholders – especially those communities most directly impacted by the project – and an openness to building on and learning from what's gone before.'
The Community Wealth Fund was developed through consultation with local residents, community organisations, and regional partners.
(Image: Paul Campbell)
GEE said the consultation helped to ensure that the fund's structure, priorities, and delivery reflect the communities whose resources and infrastructure will underpin the project, whilst providing meaningful benefit for the wider region.
The developers added that it is already working closely with local community councils, the Highland Council, Soirbheas, and Foundation Scotland.
Roderick MacLeod, director of GEE, said that his firm is listening 'carefully' to what local communities want to see as a priority for funding.
He said: 'The GEE Community Wealth 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.
'We have listened carefully to local priorities and worked with communities and partners to develop a model that is transparent, independent, and built for the future.
'Our aim is simple: to create a fund that delivers real impact, not just for the next few years, but for the next hundred and beyond.'
Angus MacDonald MP, who represents the Inverness, Skye and West Ross-shire constituency where the project is to be built, said the commitment of 5% is a 'meaningful stake' for the local community.
(Image: Glen Earrach Energy)
He said: 'One of my first major campaigns after being elected was to ensure that communities who host clean energy infrastructure see the benefits from it. Over the past year, I have repeatedly raised this issue in Parliament and had meetings with communities, Ministers and energy companies to try and deliver a breakthrough.
'In my maiden speech to Parliament, I proposed that 5% of revenue from new renewable projects should go to the communities that support them. That idea was rooted in the belief that if rural areas are asked to host nationally significant infrastructure, they should see lasting, tangible benefit in return.
'Glen Earrach Energy committing to 5% of gross margin is recognition that communities deserve a meaningful stake in the transition happening around them. This shows what's possible when developers take local leadership seriously, and I hope it sets a precedent across the sector.'
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