Windfarm owners could be forced to hand over 5% of profits under possible plans which could generate smaller-scale "Norway oil funds" for communities in rural Scotland.

The council that covers a third of Scotland's land mass has agreed to put pressure on the SNP government to enshrine contributions in law after a motion received majority support.

Currently, privately-owned firms are only invited to make a voluntary contribution of £5000 (plus inflationary increases) per year per megawatt installed, regardless of the electricity and revenue generated.

While it is acknowledged that some contribute more, others do not provide anything at all.

Angus MacDonald, Liberal Democrat councillor for Fort William and Ardnamurchan. says he is repeatedly asked "what's in it for us" by those who live in rural areas populated by turbines.

Highland councillors backed a motion this week put forward by Mr MacDonald which he says could generate millions for communities in Skye, Lochaber and Caithness to increase affordable housing, improve transport links and tackle fuel poverty.

The Herald:

The local authority which is jointly led by the SNP and the Highland Independent Group, has agreed to press the Scottish Government to legislate to allocate at least 5% of gross revenue from wind farms and to widen the areas in which funds are to be distributed.

Data obtained by Mr MacDonald, who 'gifted' Fort William its first cinema in 15 years, shows revenue generated at the current wholesale energy price has soared from £30 per MW hour to £150.

READ MORE: BT wins multi-million pound Scottish Power windfarm contract 

He said the proposals could have major implications for  Skye, where several new windfarms are planned.

He said: "Angus Robertson said in a speech that ‘Scotland can and will become the Saudi Arabia of Renewables’.

"Well currently we may be the location of the renewables boom, however all but a fraction of the money is leaving Scotland.

"There are some institutions that are making an untold fortune, with none of that windfall actually trickling down to those who have the downside of living near windfarms.

"What the Scottish Government could do is legislate to change it from a voluntary donation per megawatt to 5% of gross revenue.

"That would reflect the much higher energy prices and would allow the communities a multiple of what they are making now.

"It wouldn't really bother the owners because they are making far more than they used to.

READ MORE: Former GP's 'utter dismay' as long-awaited Highland hospital faces further delays

He added: "What a difference it would make to our communities if they had their own equivalent of The Norwegian Petroleum Fund".

"There is a real shortage of affordable housing. They could give an energy rebate to people in the vicinity of wind turbines or they could use it for other community projects such as swimming pools and community centres."

The Herald:

He said the Scottish Government "had not thought the process through properly".

He said: "They fixed a figure which is not related to electricity price and therefore the much higher electricity prices are not really of any benefit to the communities."

In response, Energy Secretary Michael Matheson said the powers to oblige developers to pay community benefits were reserved to the UK Government. 

READ MORE: Highland community's first cinema in 15 years 'gifted' by serial entrepreneur 

He said an independent Scotland "could ensure that legal measures could be put in place to ensure a much greater level of community benefit."

A report published last year found Scotland’s community-owned wind farms have provided, on average, 34 times more benefit payments to local communities than those that are privately owned.

Research by Aquatera Ltd on behalf of Point and Sandwick Development Trust, compared nine community owned and four private wind farms in Scotland and found that returns from the community-owned wind farms average £170,000 per installed MW per annum, far exceeding the community benefit payment industry standard of £5,000 per installed MW per annum.

Unlike private wind farms, community-owned wind farms’ monetary contributions are based on the turbine’s financial performance instead of a set yearly stipend.

One case study within the report showed that the 0.9 MW community-owned turbine on the Orkney island of Westray has returned to the community approximately £299,057 per MW per annum and is expected to contribute £6.8 million to the community over its 25-year lifespan. 

The Highland councillor said he has written to Scottish Liberal Democrat leader Alex Cole-Hamilton to progress the issue at Holyrood.

Highland Council also agreed to review its own policy for onshore wind turbine development "as a matter of urgency" including the launch of a new trust fund.

Already a published author and serial entrepreneur, Mr MacDonald footed the entire cost for a new cinema as a “gift” to the Lochaber area where he grew up and also opened a bookshop after learning that they play a crucial role in helping regenerate a town centre.

Since opening in September 2020, it has been recognised in Time Out’s 50 Best Cinemas’ in the UK list.

Mr MacDonald's aspirations are now political. He intends to challenge SNP MP  Ian Blackford's Ross, Skye and Lochaber seat in the next UK Government elections and says he has built up a "good level of support".

Energy Secretary Michael Matheson said: “The Scottish Government does not have the direct powers to oblige developers to pay community benefits as these powers are reserved to the UK Government. 

"With the powers of independence Scotland could ensure that legal measures could be put in place to ensure a much greater level of community benefit.

“Community benefits from renewable energy developments can help support lasting economic and social progress for communities across Scotland.

“Our long-established Good Practice Guidance for onshore wind generation continues to promote a national level of community benefits equivalent to £5,000 per installed megawatt each year, while some renewable energy businesses may instead offer communities a more holistic and flexible package of benefits. 

 “Communities should be strongly engaged and involved in agreeing the best approach for their areas, one which fits their long-term needs and aspirations.”