Need for urgent action to ensure Scotland’s communities benefit from renewables bonanza
16 April 2026
Communities across Scotland could benefit by £500 million per year if politicians and the renewables industry begin preparing now for a Scottish Community Wealth Fund.
New research suggests that Government and stakeholders should act urgently to ensure people across the country benefit fairly from the huge profits on-shore and off-shore windfarms are expected to generate.
A feasibility study by the independent economic think tank – The Centre for Local Economic Strategies (CLES) – says that, while there is a shortage of detailed data, and a level of nervousness amongst industry leaders about how a community wealth fund could negatively affect investment, a properly planned Scottish Community Wealth Fund (SCWF) could bring significant economic benefit to multiple communities.
The research concludes: “… a Scottish Community Wealth Fund would be bold, transformative and internationally unique” and it would put “communities at the heart of a national wealth funding model.”
The CLES report concentrates on wind farms, although it expects other renewable businesses would increasingly participate in the new fund.
Hundreds of millions generated per year
It states that, based on proposals from the Scottish Community Coalition on Energy, there is potential to create contributions to the proposed Scottish Community Wealth Fund of over £500 million annually by 2035; almost £36 million from onshore and £484 million from offshore wind farms.
The research concludes that more analysis is required to decide more precisely on how much wind-farms can be expected to contribute to the Scottish Community Wealth Fund, and there has been no research yet into how other renewable sectors could contribute.
The report identified a lack of public data on acceptable rates of return, development costs and profit margins to fully analyse what payments into a SCWF may be feasible.
The report continues: “Five percent of project revenue to be split between local benefit funds and SCWF payments may not be feasible, but increased benefit payments to £7,500 per megawatt for onshore and £2,500 per megawatt for offshore may be more viable. Greater transparency of data is needed.”
The report says the proposal for a SCWF raises fundamental questions “about who profits from our natural resources, where should it go and who should it benefit.”
The report suggests there will need to be action from the Scottish Government to show their commitment to the fund and its principles by providing seed funding and legislative context that impels sectoral contributions, but also from multiple sectors to get behind the opportunity that presents itself right now.
Next steps for community wealth
Much work remains to be done, the report says. Communities must be involved in designing the new wealth fund structure and the clear next steps include:
- Detailed research around financial realities
- More detailed analysis of how communities can benefit
- Setting up a steering group from across sectors to enable greater collaboration in the development of the Scottish Community Wealth Fund and its governance processes, initial strategy and levels of capitalisation
- Establishing political consensus over the need for the establishment of a Scottish Community Wealth Fund
Dr Josh Doble, Policy and Advocacy Director of Community Land Scotland, said: “We have been developing and advocating for a Wealth Fund for several years, to ensure that communities across Scotland benefit properly from the exploitation of our natural resources. Almost everyone agrees that the significant profits which renewable energy generation and transmission will create should benefit local people, and there is a huge opportunity to build a lasting legacy for all of Scotland’s communities.
“The new CLES report suggests the time for talking is over and the time for urgent targeted action is now. We know that significant revenues and profits are being created, and we know that developers and government need to ensure Scotland’s communities and economy is benefitting into the future. Now is the time for transparency, collaborative planning and political support to turn this strong concept into a transformational reality.”
Giles Ruck, CEO of Foundation Scotland added: “Foundation Scotland has long seen the value that well-designed community benefit can bring, but we also recognise the current system can feel inconsistent and, at times, inequitable from the perspective of different communities. This report, that we were very pleased to help fund, is an important contribution to a more open and constructive conversation about addressing that inequity in a fairer, more strategic way.
“A Scottish Community Wealth Fund has real potential to create a lasting national legacy from our renewable resources, provided it is developed carefully, with input from communities, industry and government alike. Building confidence across all parties will be critical, particularly in ensuring that any new approach complements existing and other emerging arrangements.
“To succeed, the Fund will need to be meaningfully capitalised from the outset. With the right design and commitment, a Wealth Fund can finally help ensure a more coherent, sustainable and equitable system where more of Scotland’s assets generate lasting value for all its communities.”
John Heneghan, Associate Director of CLES said: “If Scotland gets this right, a Community Wealth Fund could reshape how economic value is shared, placing communities at the centre of the nation’s renewable future.”
The Scottish Community Coalition on Energy is a group of community sector organizations advocating for a “Fair Energy Deal” for Scottish communities.
Key organizations involved include:
- Community Energy Scotland (CES)
- Development Trusts Association Scotland (DTAS)
- Community Land Scotland