£2m boost blows into community Windfarm sale pays massive dividends for residents
A wind farm that was run by local people has been sold.
Ne i l s t o n C o m m u n i t y Windfarm has been bought by The Renewables Infrastructure Group (TRIG) and £2 million sale cash will see the creation of a new fund to invest in the long- term development of the area.
The four-turbine development was 28 per cent owned by Neilston Development Trust (NDT) and the rest by developers Carbon Free.
And now, after repaying the loans taken out to fund NDT’s share of the windfarm and deducting legal costs, there will be a surplus of approximately £2 million.
This will be used to start a charitable fund to support local facilities, services, jobs and community life in the Neilston area.
NDT cha i rman Pauline Gallacher said: “This agreement gives us guaranteed funding to invest in the future development of our community.
“The windfarm was not a riskfree investment but the high level of return over a short period is a tribute to those who supported the principle of a joint venture.
“We hope that this agreement will result in wider support for more community- led investments in Neilston and elsewhere.”
The £ 2 million payout is in addition to £ 400,000 already received by NDT over the last four years.
This was used to employ staff and fund the provision of key services from the NDT’s ‘Bank’ community facility.
Bosses says the scale of the return reflects the strength of the investment model used by the trust, with substantially higher payments earmarked for the local community than would have been the case with traditional community- benefit models.
Gordon Keenan, Chief Officer of NDT, explained: “Although the wind farm’s prospects are good, NDT found it difficult to manage the variations in income in light of the fixed interest loans we took out.
“This was caused by changes in oil and gas prices and the loss of certain subsidies.
“This extended the period before funds could be made available for community projects and grants.
“By selling our share of the project to a well- regarded and experienced investor, the funds are guaranteed and available, when needed, to support the sustainable development of the community.”
Joanne Karatzidis, Investment Manager at Social Investment Scotland, which supported NDT’s initial investment in the wind farm said: “We are delighted that the NDT Board has found a way to secure a long-term legacy for the community and look forward to continuing a positive and productive relationship with NDT.”
Bosses say the windfarm will continue to contribute to Scotland’s green energy supply, generating 2.5 times the annual electricity requirement for Neilston.
Neilston Development Trust is to hold a community meeting to outline the plans for the new fund, which will be constituted as a Scottish Charitable Incorporated Organisation, at St Thomas Church Hall, Neilston, on Tuesday, May 30, from 6.30pm to 8pm.