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Community Investment Report COMMUNITY INVESTMENT REVIEW 2019/20 FOREWORD || CONTENTS FOREWORD 2019/20 has been an extraordinary year for SSE Renewables. We started construction on two new ground-breaking offshore wind farms – Dogger Bank, which will be the world’s largest wind farm once complete, and Seagreen, which will be Scotland’s largest. In January 2020 we greenlighted a first subsidy-free onshore wind farm in Scotland, an extension to the existing Gordonbush wind farm in Foreword 01 Funder’s Report 02 Regional Funds 06 Sutherland. Advancing these wind farms, and others in the development pipeline, are a critical part of the response to the climate emergency. Together, they will make a significant contribution to meeting the UK’s ambitious net zero carbon targets whilst making a positive economic contribution in their local areas. By March 2020, of course, everything helping to make things just that little penny of this funding has been Local Funds 10 Offshore Funds 14 NI and ROI Funds 18 became dominated by the bit easier. As we are emerging from allocated and showcases the strong coronavirus pandemic. Operationally, lockdown it is clear there are many funding decisions local people we adapted quickly to make sure that challenges ahead, but having seen the continue to make to ensure their FUNDS IN FOCUS power supplies from our renewable positive effects of the funding we’ve communities have what they need generators continued to flow at channelled towards the coronavirus now, and for the future. Highlands and Islands Beatrice Moray 29 Clyde Extension 36 the same time as making sure our response so far, our objective is Stronelairg 20 Community Fund South Lanarkshire Sustainable 36 Bhlaraidh 21 Development Fund employees and the wider public were that the funds will play a big part I know that awarding grants is the Dunmaglass 22 Perthshire safe. And as a significant funder of in helping communities and their easy bit so I would like to thank Strathy North 23 Griffin and Calliachar 30 Dumfries and Galloway community activity in the areas where economies to recover. everyone involved for their hard work Gordonbush 23 Drumderg 31 Clyde Dumfries and Galloway 37 our renewable energy assets operate, and good judgement, particularly the Artfield Fell Achany 24 Perthshire Sustainable 32 38 we also knew we had to adapt quickly This report, however, is focused on countless volunteers who play a huge Glendoe 25 Development Fund Balmurrie Fell 38 Fairburn 26 Tangy 32 to make sure funds could meet the the 2019/20 year as a whole. It is a part in every community. Spurness 26 Hadyard Hill 33 North Lincolnshire new local needs that were becoming summary of every grant awarded to Kingairloch 27 Keadby 39 clearly apparent. each community group we work North Lincolnshire Sustainable Beatrice Partnership 27 Scottish Borders 40 with. Through the year we funded Fund - Highland Clyde Borders 33 Development Fund Beatrice Caithness 28 Toddleburn 34 It is remarkable how quickly £8m of community projects, local Community Fund Scottish Borders Sustainable 34 communities have mobilised charities and grassroots organisations. Jim Smith Beatrice Partnership 29 Development Fund themselves, and I hope that funds are This report highlights how every Managing Director, SSE Renewables Fund - Moray Clyde South Lanarkshire 35 COMMUNITY INVESTMENT REVIEW || 2019/20 1 FUNDERS REPORT 2019/20 FUNDERS REPORT 2019/20 FUNDER’S REPORT 2019/20 Area Total Awards Number of Projects GB and Ireland £8m 1,102 FOCUSING ON GB £6.1m 443 NI £0.67m 128 FUND PRIORITIES ROI €1.38m 531 2019/20 has been a year of growth for the SSE Renewables 88% of Sustainable Development Fund applicants found community investment programme, with the successful the guidance from the Community Investment team to be establishment of new local onshore wind community funds along very helpful. with community consultations prior to the launch of new offshore ‘The application process was straightforward and easy to wind funds. Areas of focus areas over the last year include: understand and complete. The support from the Community Investment Manager was excellent. The event was a great success New offshore funds – Having been successful in the 2019 Contracts for Difference auction, thanks to the support of funders including SSE Renewables.’ SSE Renewables is progressing with the construction of two new offshore wind farms – Wendy, Stranraer Water Sports Association Seagreen Wind Farm off the Angus coast (SSE Renewables 49%) and Dogger Bank Wind Farm off the Yorkshire coast (SSE Renewables 50%). Building on our experience from the Beatrice offshore wind farm (SSE Renewables 40%), completed in 2019, the consultation process with local communities about establishing the community funds for these sites has begun. Revised GB onshore community benefit policy – A review of the community benefit policy was undertaken in 2019/20, recognising the significant change and reform happening across the renewables sector. SSE Renewables seeks to provide value for money for electricity customers and, together with the wider industry, has succeeded in reducing the cost of renewable generation. The new policy seeks to respond to that change in the industry, providing clarity for communities while ensuring that future renewable developments continue to share the value of renewable energy with the communities that host it. (See page p5) Great Britain and Ireland – This year we have combined the community teams for GB and Ireland. This has provided an opportunity for shared learning and an enhanced experience for funded organisations. We have recognised our capacity has been stretched this year and look forward to expanding the expertise of the team in 2020/21. In 2019/20 a new skills fund launched in Northern Ireland (p18) and a new apprenticeship programme in Ireland. (p19) Showcasing funds – We hosted a flagship event at New Lanark Heritage Site to showcase the community investment approach of Clyde Wind Farm (Scotland) Ltd (SSE Renewables 50%). The event brought together a range of stakeholders including the management board of Clyde Wind Farm Ltd, the Sustainable Development Panel, local community representatives and representatives from local and national government. The objective of the event was to support shared learnings and highlight local priorities for the future of the Clyde Wind Farm funds. Changes to how we pay awards – Reflecting the digitalisation of banking services, this year we moved from making awards by cheque to making payments electronically. Using out- dated methods of payment not only resulted in delays to payments being made, but with the closure of many rural bank branches often meant a lengthy trip to deposit the money into bank accounts. While there were some teething problems in the new system to begin with, the objective is that electronic payments will improve the experience for future awards. 2 COMMUNITY INVESTMENT REVIEW || 2019/20 3 PRIORITIES FOR 2020/21 REVISED COMMUNITY BENEFIT POLICY PRIORITIES REVISED GB COMMUNITY FOR 2020/21 BENEFIT POLICY As SSE Renewables continues to grow and develop new sites, we will ensure that the The landscape for developing onshore wind farms has changed significantly over the community investment programme continues to support projects in the communities past twenty years. Onshore wind has transformed from an industry in its infancy across where we already operate and communities near new wind farm developments. The GB and Ireland, to being considered a mature form of electricity generation essential focus for the coming year will include: in helping to achieve net zero targets. Unlike most industries, community benefit funds have been established by developers to support mature relationships with the Coronavirus – In 2020/21 the coronavirus pandemic will have a continued impact on the communities we work with. communities where their assets are sited. We are committed to using the community funds to support local initiatives to help during this crisis. This includes the immediate offering of 10% of the annual funds to local coronavirus responses in April 2020 with more funding to be SSE Renewables seeks a responsible approach to developing our sites and creating long-lasting relationships allocated to coronavirus projects across the year. with the communities which host our assets. The provision of community benefit funds has helped communities share in the social value of renewable energy. As the industry develops, renewable energy will be New Funds – We look forward launching the community funds for Seagreen and Dogger Bank offshore wind farms the most cost-efficient source of zero-carbon electricity generation. and particularly the opportunity to be working with new communities. We anticipate starting construction of the Viking Wind Farm in Shetland during 2020/21, which will bring significant community funds to the islands. In addition, we have In light of this, we have undertaken a widespread review of the costs associated with developing wind farms, a number of proposed onshore wind farm sites in development in Scotland. These sites will be the first to have funds including the policy on community benefit. In line with Scottish Government guidance, we remain committed established under our updated Community Investment Policy. to providing a package of benefits with an equivalent value of at least £5,000/MW, and this will include community benefit funds of £3,000/MW. The community fund will continue to be split between funding Joint Ventures – We recognise that a key focus for the team is to operate funds on behalf of joint venture partners for the communities nearest the wind farm, equivalent to £2,000/MW, with the remainder being delivered including Clyde Wind Farm (Scotland) Ltd, Beatrice Offshore Wind Farm Ltd, Stronelairg Wind Farm Ltd and Dunmaglass regionally through our Sustainable Development Funds. This policy will apply to new funds from sites being Wind Farm Ltd. We will develop a new approach to ensure we can manage the needs of the communities nearest the constructed from 2020 onwards with existing funds remaining unchanged.
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