All profits from a major new windfarm in Orkney will be spent on local services, council officials have announced, in what is expected to become the UK's largest publicly owned windfarm. The project, which will see up to 18 turbines erected across three islands, secured £62 million in financing from the UK's national wealth fund.
Construction of the first phase, involving six 150-metre-high turbines near Kirkwall, is due to begin in 2027 after Chancellor Rachel Reeves confirmed the national wealth fund would underwrite costs. The turbines will generate enough electricity to power around 47,000 homes, bringing in an estimated £3.3 million annually from 2028, totalling approximately £120 million over the project's lifetime.
Council leader Heather Woodbridge said public ownership made the scheme "much more palatable and understandable" for residents, contrasting it with private projects where profits leave the area. Sweyn Johnston, head of enterprise and economic growth, added that local authority ownership is "a much fairer thing that really benefits everybody."
In addition to council income, £144,000 per year will be distributed among Orkney's community councils, with 60% going to the two closest to the scheme. The council also plans to erect six turbines on Hoy and six on the uninhabited island of Faray, though the Hoy project has faced delays due to rising costs for undersea cable installation.
Community Energy Scotland chief executive Zoë Holliday said the case for community ownership has become sharp in the debate about transitioning from oil and gas, noting that publicly owned schemes return far more to local communities than private projects. Orkney already has six smaller community-owned windfarms and high levels of renewable energy adoption.
