£500m from renewables could be funnelled into Scottish communities in a decade - think tank says

The estimate comes from fresh research by the independent think tank the Centre for Local Economic Strategies (CLES).

CLES based its projections on proposals from community groups calling for wind farm developers to allocate five per cent of profits to a dedicated fund. On that basis, and factoring in the expected expansion of renewable energy, the study suggests that more than £500 million a year could be raised by 2035 — including almost £36 million from onshore wind and £484 million from offshore projects.

Read more: More shared ownership in renewables on the horizon for rural communities with new energy plan

The report warned, however, that further analysis is needed to determine what contributions are realistically achievable, citing a lack of publicly available data on rates of return, development costs and profit margins.

At the moment, community benefit payments in Scotland remain voluntary, with guidance from the Scottish Government suggesting contributions of around £5,000 per megawatt each year. On that basis, about £30 million was distributed in 2025, up from £25 million in 2023. Officials expect the figure to continue rising as the country’s renewable transition gathers pace.

Earlier this year, proposals were put forward to increase the £5,000 benchmark — first introduced in 2014 — to £6,000. Critics argue that the uplift fails to reflect more than a decade of inflation and should be set higher.

The proposal of a separate Scottish Community Wealth Fund (SCWF) was put forward by a coalition of community organisations called Scottish Community Coalition on Energy (SCCE). The think tank said a dedicated SCWF could bring “significant economic benefit to multiple communities.”

The report adds that while allocating five per cent of project revenues between local funds and a national wealth fund may prove impractical, higher baseline payments — such as £7,500 per megawatt for onshore wind and £2,500 for offshore — may be more viable. It calls for greater transparency from developers to enable more robust modelling.

CLES called on the Scottish Government to up its commitment to the proposed SCWF by providing funding and to encourage industry contributions.

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.”

Dr Josh Doble, 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.”

The Scottish Government said the power to mandate community benefits is reserved to the UK Government.

Last year, the Department for Energy Security and Net Zero launched a consultation on ‘Community Benefits and Shared Ownership for Low Carbon Energy Infrastructure’ which included exploring voluntary to mandatory community benefit schemes and mandatory shared ownership. The policy remains under development.