1) The Turbines

Q. How much will the allocation of a community turbine cost the peninsula?

A.

At the moment, the proposal which has been taken as agreeable to both the developers and the FPDT is that a community turbine will be deemed, as part of the overall scheme on the Hill of Nigg. Such schemes have been undertaken before (most famously in the Findry development).

The concept of a “community turbine” has to be looked at more closely though: whilst the developer did offer that the community could literally buy, own and operate our own turbine, together with all the financial risks and benefits thereof, the Committee felt that, given the possible downside, this was not in the best interests of the community. The alternative, which we feel is more appropriate, is that one turbine-worth of profits post-financing arrangements will be given over to the community as the benefit. In this way, we will not need to invest any money ourselves, the developers will arrange for all the financing, and, regardless of whether one turbine fails or the scheme turns out to be even more profitable than anticipated, one fifth of the profits will be paid to the community. For more details, see the “Windfarm Benefit Packages” page.

Q. Should we allow a turbine to be built on top of Nigg Hill?

A.

Everybody has a part to play in conserving energy and providing for future generations. For a long time, we have been reliant on energy being produced from coal, gas, and oil power stations which are remote from the Highlands. Environmental concerns and concerns about long-term supply of fossil fuels mean that many of these will be closing in the future and we all need to act now to ensure that there will be sufficient energy supplies for everyone. Renewable energy has long been cited as a healthier alternative for the planet in general and for our region in particular, though the nature of renewable projects is that they can only generate electricity where sufficient supply of natural energy is present.

The Hill of Nigg is a very windy area and has for some years been cited as a possible site for a wind energy development. Nigg also has a history of industrial energy through its long association with the fabrication yard. It has been said that it would be a fitting token for the next 25 years to see the industry evolving from oil based into a renewable energy one, and if the development goes ahead then the communities stand to benefit according to the conclusion of discussions between the FPDT and the developer (see question 2) “How much is being offered”, below).

On the other hand, development can be intimidating and change a step towards the uncertain. Any wind turbines erected on the hill would no doubt be visible to homes in the vicinity, and during the process of construction there would no doubt be increased activity around a number of houses on the hill. For the 25 year expected life of the windfarm, there will obviously be further signs of human presence in the area, and some are opposed to the scheme (see “Nigg Awareness Group website”, on News & Views page).

In the end, it is for groups and individuals in the communities themselves to consider the benefits and the drawbacks and to decide for themselves whether they want the turbines or not. The final decision as to whether or not to allow the development will lie in the hands of the planning authorities who will have their own considerations to take into account.

Q. Who will build and operate a community turbine?

A.

Again the developers have said they will build and operate the turbine on our behalf . This gives us the certainty that we will not be involved in any contractual difficulties with the turbine suppliers, the contractors who build the project or the operation contractors. The developer also has experience of arranging for the sale of the electricity at the best prices, and thus the committee felt better placed to do this for us.

2) The Financial Benefits/Cost?

Q. Do we need extra income from a community turbine? Doesn’t my Council Tax pay for my local services?

A.

Currently approximately one third of community services like, public toilets, community halls, football pitches, are paid for through council tax receipts, with the remaining two thirds being paid out of national government funds (from income tax and other direct taxes). However, we are all aware of the current economic difficulties and so some Council funded services will inevitably have to be cut. The Highland Council have stated that they have been required to cut £60million from their budgets over the next 3 years, with £36million of that as yet unidentified. Some worthy services currently provided by the council may be cut.

If we can get a regular income from community involvement in a local wind-energy scheme, we can then seek extra income from other funding bodies and seek to ensure the long term survival those services which the community has so enjoyed. Other communities have done this, and are reaping the benefits - new efficient heating systems for our, subsidised events for the elderly and the young, a cleaner environment for us all…

Q. How much money is being offered?

A.

The price of electricity does fluctuate, as does the amount of electricity produced by a wind turbine. Therefore, the amount of income a community turbine will generate will vary from year to year. On another scheme with 15 turbines near Fintry, the developers included a community turbine, and on that scheme the income is around £50 000 per annum for the first 15 years, until the bank loans are paid off. Once the loans are paid off the income is anticipated to be considerably more – in the case of the Fintry scheme, around £250,000 per year is predicted for the final 10 years. Of course such figures are dependent on the price of electricity, the price of the turbine, structure of financing arrangements and how much the bank charge for the loan but these are the approximate figures for a scheme already in existence.

For the proposed scheme on the Hill of Nigg, 5 turbines are being proposed with one fifth of post-financing cost profits (EBT)  being given as community benefit. This has been estimated at £60,000 over the first 12-15 years, rising to £200,000 per year for the remaining 10-13 year life of the scheme.

Q. Will there be any liabilities if the project fails?

A.

The way an agreement with the developer will be structured means that, in the unlikely event the turbine fails to produce enough energy to pay off the debt, the losses will not be shared in the way that profits are – there will be no liability for the community to share in the downside. There will be no financial penalty on the group, save that we would not received the expected income.

3) The Community Benefits

Q. Who will decide how the community benefit money will be spent?

A.

The Fearn Peninsula Development Trust has been set up to maximise the economic benefits from the possible “community turbine”, and ensure the benefits stay within the Fearn peninsula geographic area. Once the windfarm is up and running and income is generating for the Trust, any application for financial assistance would be considered from groups or organisation in the Fearn peninsula geographic area. We have decided to initially restrict applications to this area, but in the future we may consider applications from a larger geographic area. We will set up a system for submitting applications, and all application will be assessed by the group who will be made up of representatives from the six Community Council areas, to ensure a fair and reasoned decision is made.

Q. Wind Farm Benefits Schedule

A.

Information on actual benefit packages in Highlands re operational wind farms.

The following schedule below gives information on community benefit packages other operational wind farms in the Highlands bring to the local areas around the sites. These are real figures (not anticipated) and if you go onto the web sites of each of the developers, including Falck, you will be able to find out which community council areas are benefiting directly.

Site & Location	Size	Developers	Approx. amount per Annum (*)	Approx. annual amount/MW (*)
Nova (Evanton)	17MW	NPower Renewables	£20,000	£1,176
Farr	92MW	NPower Renewables	£100,000 + £1M initial lump sum	£1521
Beinn Tharsuinn	30MW	Scottish Power	£60,000	£2000
Millennium	50MW	Falck Renewables	£100,000 + local co-operative	£2000
Kilbraur	47.5MW	Falck Renewables	£95,000 + local co-operative	£2000
Ben Aketil Skye	28MW	Falck Renewables	£39,000 + local co-operative	£1400
Fairnburn	40MW	Scottish & Southern	£80,000	£2000
Achany Lairg	38MW	Scottish & Southern	£76,000	£2000
Nigg	10MW + 2.5MW	Falck Renewables	£20,000 + local co-operative	£2000
			Plus Community Turbine(**): 12-15yrs @ £60,000 10-13 yrs @ £200,000

(*) Note the approximate annual amounts do not include the projected returns to the local co-operatives which could be in the range of 7.5% to 10% per annum.

(**) Note the approximate per annum projected figures are conservative.

What do we need to do?

Q. How to get involved

A.

If you want to become involved with the group, then complete the application form. Given the developer wants to build four other turbines on Nigg Hill, we believe that time and effort spent in ensuring the maximum community benefit is obtained and reasonably distributed to be a safe investment.