Viking’s long history
Because it was the first proposed development and remains by far the largest, the work of SCBF has largely concerned the Viking Energy Wind Farm (VEWF). Initially it was owned mainly by the Shetland Charitable Trust and SSE Renewables but the trust backed-out of its investment leaving SSE Renewable as the owners.
Anyone in Shetland over the past decade knows the Viking project has experienced something of a roller-coaster ride. The work and activity levels of SCBF and its directors has largely mirrored that of Viking Energy. When its prospects of going-ahead seemed more likely then SCBF activity increased because we had to be prepared in case the wind farm was built. However when the prospects were less likely, as was the case for some time, then SCBF activity was largely restricted to an annual meeting and a ‘watching brief’ on what was, or wasn’t happening.
However, work continued somewhat spasmodically on preparing a draft agreement for community benefit if the Viking development did ever happen. SCBF held numerous negotiations with the company and its main shareholder – SSE Renewables.
As the commitment and confidence of SSE Renewable to build the Viking windfarm increased SCBF, Viking Energy and SSE Renewable finally signed Heads of Terms in July 2020 to form the basis of community benefit funding through the Viking Community Fund.
This committed Viking Energy and SCBF to two legally-binding agreements – one for funding of £400,000 a year while the development was being built from 2020 to 2024 and another for the main core funding of £2,214,500 a year (index-linked) for the lifetime of the development. The main funding starts when the wind farm sends the first commercial energy through the new interconnector cable to the Scottish mainland – expected in summer 2024.
The first legal agreement was signed in May 2020 and SCBF receives £400,000 a year during wind farm construction from the Viking Community Fund, starting in September 2020.
This money has been used by SCBF to operate the Advance Grant Scheme to fund projects supported by Shetland’s community councils. The four community councils that have a turbine in their area – Tingwall Whiteness and Weisdale, Sandsting and Aithsting, Delting, and Nesting and Lunnasting – were allocated £50,000 a year to support projects and the other 14 community councils £10,000 a year.
SCBF also used the funding to operate the scheme, run its administration, for legal and financial advice in its negotiations with VEWF, develop a website with on-line grant applications, and hold a wide-scale consultation to identify the community’s priorities for the Viking Community Fund. The results form the basis of a full Business Plan which was needed before the second legal agreement, for the main core funding of £2,214,500 a year, could be signed. The Business Plan was approved in May 2024 and the formal Minute of Agreement signed later the same month.
SCBF is now looking to see how the community benefit fund can be used to supplement and enhance existing funding schemes, from whatever source, and to help tackle local needs and priorities in imaginative and creative ways. Full details of our funding schemes are in the Business Plan.
Support for smaller community-led projects will continue with the Community Grant Scheme, very largely based on the very successful Advanced Grant Scheme, to help sustain and develop local communities. The majority of the fund will be used for strategic initiatives that focus on the priorities identified in the Business Plan.
