The Scottish Government

Name

Ken Meek

Job title

Organisation

South Lanarkshire Council

Address

Montrose House, Hamilton, ML3 6LB

Telephone

01698 455928

Fax

01698 455952

Email

ken.meek@southlanarkshire.gov.uk

1 South Lanarkshire Rural Partnership

2

3

4

5

6

Development Plans Development Management Development on the Ground Community Involvement

Title of entry

Blacklaw Renewable Energy Fund, South Lanarkshire

Professional knowledge Innovation Management Sustainable development

Partnership Community interest Regeneration Customer satisfaction

The Blacklaw Renewable Energy Fund was established for the receipt and disposal of 'community benefit' paid in respect of Scottish Power/ CRE Energy's Blacklaw Windfarm near Forth, South Lanarkshire. The developer's windfarm proposals were assessed as being acceptable in planning terms and the developer was encouraged to contribute 'community benefit'. This has resulted in a contribution equivalent to £1000/MW of generating capacity being provided to the Council to distribute to eligible projects in the affected area. Income received is index linked to ensure that the value of the developers contributions are maintained over the 28 year lifespan of the windfarm project.

The purpose of the Fund is to assist affected communities to improve the quality of life and economic prosperity in their local area.

The main Renewable Energy Fund receives 70% of generated income and is administered by South Lanarkshire Council's Enterprise Resources and focuses on larger "legacy" projects. The REF Local Grant Scheme receives 30% of generated income and is administered through the South Lanarkshire Rural Partnership and is primarily used to build capacity and progress small scale projects with affected communities. The REF Local Grant Scheme is matched with Leader+ monies from the EU and focuses on smaller community based projects. Both Funds will consider eligible projects within a 10km radius of the windfarm development boundary.

In 2002 CRE Energy on behalf of Scottish Power submitted a proposal to the Scottish Executive for the construction and operation of a windfarm power generation station at Blacklaw, South Lanarkshire. South Lanarkshire Council responded to a consultation request as part of the planning process and requested that the developer undertake to provide funding for the development of projects in the local community over the 28 year lifespan of the windfarm operation.

These 'community benefit contributions' were controlled by means of a Section 75 legal agreement entered into by the operator and the Council and defined the level of the contributions and the parameters that any projects would require to satisfy in order to receive a share of the fund.

Both the Renewable Energy Fund and the REF Local Grant Scheme provide financial support for capital projects which meet one or more of the following priorities:

• To secure investment, create employment, implement training, promote or secure sustainable development.

• To relieve poverty, advance education and other social purposes beneficial to an eligible community.

• To preserve, protect or enhance the environment or heritage of Scotland, including any building

• To promote and encourage environmental improvement or enhancement including the provision or upgrading of infrastructure

• To provide or assist in the provision of facilities for recreation or other leisure time activities

The first payment was received from CRE Energy in August 2004. The Renewable Energy Fund was formally launched in 2005 and since then has been receiving and distributing funds to a wide range of community projects within the eligible area.

Any community group or individual wishing to apply for funding is encouraged to discuss their idea with the Renewable Energy Fund Project Officers before making an application. The officers provide assistance with development of the project and with completion of the application form.

After initial contact is made with the Project Officer, additional guidance on eligibility criteria is provided and any necessary further discussions take place prior to lodging any application to ensure that when received, it contains all the necessary information to allow processing and determination.

On receipt of all information required, we process the application within a 4-week period.

If successful, a recommendation is made within 8 weeks of the conclusion of the application process. This period may require to be extended if any consultations are required of other statutory bodies or agencies. Subject to Committee approval, an offer of grant is then issued to the applicant organisation.

Upon receipt of an offer of grant, the applicant is required to supply confirmation of acceptance within 4 weeks of the date of the offer. Any grant offer is subject to securing any necessary statutory consents and match funding. As part of the offer, the applicant may be required to submit applications for these within a required period of formal acceptance.

Following acceptance of grant, the Project Officer meets with the applicant organisation to provide guidance on monitoring and reporting information, which requires to be provided in support of the grant claim.

The nature and frequency of monitoring visits is agreed with the applicant at this point and guidance given on the type of information required to enable draw down of grant funds both during and after successful completion of the project.

Prior to payment of the final instalment of the grant an evaluation and compliance exercise is undertaken with the applicant to confirm that all aspects of the project have been completed successfully and the identified outputs delivered satisfactorily.

As can be seen in the list of successful applications and the images enclosed the range of community groups and project types is many and varied.

The two key partners in distributing REF funds are South Lanarkshire Council and South Lanarkshire Rural Partnership who both work closely with community groups before during and after the application process gets underway.

South Lanarkshire Council is responsible for ensuring that community benefit payments are received from the windfarm operator. Applications to the REF 'Local Grants Scheme' are administered by the South Lanarkshire Rural Partnership Team based in Lanark. Applications for the Main REF Scheme are administered utilising SLC staff based in Enterprise Resources, Hamilton.

Both partners have developed methods and procedures to ensure that applicants are given assistance in preparing their applications and that the assessment process is easily understood and transparent.

Since 2002, the SLRP has also delivered the LEADER+ programme - an EU funded initiative whose key objective is to encourage and test new approaches to rural community development. Within rural South Lanarkshire, the programme supports local communities by: developing the area's environmental and cultural resources; using new know-how and technologies; adding value to local products; promoting sustainable economic development and improving the quality of life in rural areas.

The SLRP operates under the umbrella of the South Lanarkshire Community Plan and brings together experience and expertise from local government, the business community, the health sector, agriculture, environmental agencies and the community and voluntary sectors.

The Partnership has adopted an integrated approach to economic, social and environmental issues and has successfully worked with local communities to establish project priorities.

The REF Local grants Scheme is match funded with leader+ EU funding allowing the fund to assist many more groups than would have been possible in isolation.

A list of supported projects is attached.

A windfarm development of this type undoubtedly has an impact not only on the environment but also on the daily lives of the communities around it.

The establishment and administration of funds from the REF enables local communities to realise projects that may not have been deliverable previously within the eligible area. The range of projects and community groups awarded funding to date as set out in the 'Results Achieved' section is testament to the ability of the REF to tap into local resources and assist in a very wide range of projects which are delivering measurable benefits to local communities on small to medium scale projects in the rural area of South Lanarkshire.

South Lanarkshire Council had previously had a number of ad-hoc arrangements elsewhere in the Council area for the collection and distribution of community benefit payments. The establishment of this fund to administer community benefit payments has had a number of advantages including:

• the use of existing staff resources and established mechanisms to deliver the proposed outcomes, therefore increasing the level of funding available for spending on projects.
• the fund is not subject to annuality and can be controlled in-house. The fund can also be used to lever additional external funding including New Opportunities Fund, Forward Scotland, European Structural Funds etc.
• this fund is 'ringfenced' to ensure that money for projects goes to the area directly affected by the wind farms development.

Due to the success of this model the Council has now established a Whitelees Forest Renewable Energy Fund for a windfarm development which has commenced construction near Strathaven, South Lanarkshire.

South Lanarkshire Council is currently in discussions with a number of other Scottish local authorities who see the SLC Renewable Energy Fund as a potential model for their own 'community benefit' schemes.

This approach to community benefit is aimed at improving the connection between local and neighbourhood levels. It attempts to encourage people and communities to engage and influence issues that affect them. It demonstrates a commitment from the partner organisations to work together, not apart, in providing better opportunities.

The above approach can in some ways help to co-ordinate other initiatives and partnerships and where necessary act to rationalise and simplify a cluttered landscape.

29 August 2007