Scottish 2GW Hydro Project Launches Consultation for £20m Annual Community Fund

Glen Earrach Energy (GEE), the developer behind a £3 billion pumped storage hydro (PSH) project at Balmacaan Estate near Loch Ness in Scotland, has launched a public consultation to shape a £20 million annual community benefit fund. The fund, the largest of its kind in Scotland, aims to ensure local communities and the wider region benefit directly from the 2-gigawatt (GW) renewable energy project. The consultation invites residents, businesses, and organizations to provide input on how the fund should be structured, managed, and allocated. Aligned with the Highland Council’s Social Values Charter, the fund is designed to deliver long-term investment in communities closest to the development. Pumped storage hydro, a reliable large-scale energy storage solution, requires significant upfront investment. However, the Balmacaan project’s natural topography allows for a more efficient design with a higher hydraulic head, enabling energy generation and storage at a lower cost per unit compared to other projects. This efficiency translates into greater economic returns, enabling GEE to offer a substantial community benefit package. Angus MacDonald, MP for Inverness, Skye, and West Ross-shire, welcomed the consultation, emphasizing the importance of local benefits. “The Highlands play a crucial role in the UK’s transition to renewable energy, yet too often, the economic benefits of these developments do not stay in the communities that host them,” he said. “It is only fair that local people see real and lasting benefits from the projects built in their area. This community consultation is an important step in ensuring that the substantial funding available from the project delivers meaningful, long-term investment for the region.” Roderick MacLeod, Director of GEE, highlighted the project’s scale and longevity. “Pumped storage hydro projects are vastly larger in scale than traditional onshore wind farms, both in terms of capacity and longevity,” he said. “Our project alone will generate the equivalent output of all operational onshore wind farms in the Highland Council area, or around 800 turbines. Given the sheer scale of this investment, it’s only right that the economic benefits match that scale, ensuring communities receive meaningful support over the lifetime of the project.” MacLeod added that the community benefit fund is expected to far exceed the £9.1 million distributed by the entire Highland wind energy sector last year. However, he stressed the importance of community input in shaping the fund. “We recognise that the best approach to community benefit is one designed with the people who will receive it,” he said. “A fund of this scale presents an opportunity to support local services, infrastructure, and long-term investment, but it also raises questions about governance, priorities, and distribution. The consultation marks a critical step in ensuring the fund delivers lasting benefits. With pumped storage hydro projects capable of operating for over a century, the focus is on creating a funding package that supports not only immediate needs but also long-term prosperity for future generations in the Highlands. The Balmacaan project is expected to play a significant role in Scotland’s renewable energy transition, providing reliable energy storage while delivering substantial economic and social benefits to local communities.

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