03 October 2024
Dear Mr Watt, Mr Denholm,
Earlier this year Scotland’s Just Transition Commission visited Shetland and last month we published a briefing sharing findings and key messages. Shetland represents a key just transition challenge, being an area at the heart of North Sea oil and gas exploration and key onshore wind developments, whilst also having one of Scotland’s highest fuel poverty rates. We believe the experience of Shetland provides salutary lessons for the entire country.
I am writing to propose a meeting to discuss the report, recognising that the just transition is a key part of the Bank’s Missions.
The Commission’s briefing is published here: A Just Transition for Shetland – Just Transition Commission
We also commissioned independent research into Shetland’s experience of the energy transition, with a focus on different approaches to community benefit and community wealth building. This research is published here: Shetland, Community Benefit, and the Energy Transition – Just Transition Commission.
These publications identify a number of key strategic opportunities for action at all levels of government to help ensure the benefits of renewable energy developments are shared equitably and safeguard public support for major infrastructure development, such as the Viking 443MW windfarm which was initially to be developed jointly between a large developer and Shetland Islands Council.
The Commission identified the potential for SNIB to play a role in supporting community energy, including shared ownership of this kind, as highlighted within the key messages as well as the insights/findings section.
In particular, one of the eight key messages is as follows:
The ability for communities to own smaller scale developments and have a share in the revenues from larger scale projects can super-charge the creation of community wealth. Community ownership will make a significant contribution to the fair distribution of value in the local and public interest, a mechanism for local communities, in the form of local councils or community-based associations, to purchase an appropriate share of a developer’s large scale renewable development should become the norm. However, as the experience of Shetland tells us, even when there is a right, the inability for communities to access project finance thwarts ambition. It must therefore be an imperative to institutions such as the Scottish National Investment Bank, alongside GB Energy and others, to establish structures that communities can access project finance in the public interest.
We are writing to propose a meeting with you and your officials to discuss these issues and will be grateful if your officials can liaise with our secretariat to find a suitable time.
We look forward to hearing from you.
Sincerely,
Professor Dave Reay and Satwat Rehman
Co-Chairs of the Just Transition Commission