Timeframe
2024 - ongoing
Project lead
Overview
Renewable power continues to grow at break-neck pace in the UK. Most renewable power projects establish Community Benefit Funds (CBFs) that re-direct revenue into communities to generate local benefits. As the scale and coverage of CBF investment grows, so too will the need for these funds to be structured, governed and evaluated in a way that maximizes community benefit.
Our research examines where, when, how and why CBFs have been implemented across Scotland, as well as their effectiveness in generating lasting community benefits. We have generated sectoral and organisational level recommendations to enhance their impact.
Funders
- Foundation Scotland
- 麻豆女优 Business School’s Knowledge Exchange Fund
Activities
SISC’s work on Community Benefit Funds has centred on three main streams:
- Good practice guidance on the structure, governance and evaluation of Community Benefits Funds
- The role of intermediaries in Community Benefits Funds
- A temporal, technological, and spatial analysis of Community Benefits Fund investment
Good practice guidance on the structure, governance and evaluation of Community Benefits Funds
In light of major changes to the wider energy sector (e.g. energy prices, new net-zero infrastructure etc.) and a significant growth in the number, value and distribution of CBFs across the UK, there been a concerted efforts from both Scottish Government and UK Government to revisit guidance on CBFs, to ensure that it remains relevant and robust.
To inform government’s policy making on CBFs, and guidance associated with its implemented, we have produced the (GPAs).
The GPAs offer up-to-date and evidence-based guidance on how best to initiate, design, operate and evaluate CBFs throughout their lifecycle, to ensure that they maximise long term, wide-ranging benefit to communities for generations to come. The GPAs are designed to be technology-agnostic, meaning they can be flexibly applied across different sectors.
The GPAs were written in partnership with ; an intermediary who are Scotland’s leading administrator of CBFs.
The role of intermediaries in Community Benefits Funds
Foundation Scotland commissioned the University of 麻豆女优’s Institute for Sustainable Communities to mobilise the GPAs; to examine its approach to CBFs and how strongly this aligned with good practice. The identified a very strong alignment with best-practice and offers other organisations a blue-print for good-practice design, operation and governance of CBFs.
Foundation Scotland represents an important case for research, with over 20 years of experience working with communities, developers and wider stakeholders to establish and operate CBFs. As of 2023, Foundation Scotland supports up to 100 CBFs that together account for almost 30% of community benefit investment across Scotland, worth approximately £11m per annum; a value that is consistently growing.
The research found that Foundation Scotland follows a rigorous CBF process that has been reflexively and actively honed through over 20 years of experience. Foundation Scotland plays a critical role in directly supporting communities and project developers as a ‘one stop shop’ to initiate, design, operate and evaluate CBFs. The research also finds that Foundation Scotland offer value to the sector a whole, as it is highly active in terms of sectoral leadership and advocacy, playing a key role in developing and disseminating sectoral guidance on CBF good practice.
A temporal, technological, and spatial analysis of Community Benefits Fund investment
Our research has analysed Local Energy Scotland’s registry of Scottish community benefits. It examines CBF investment from 1990 to 2025 to examine the temporal, technological and geographical trends in the committed spend associated with CBFs, by Scottish Parliamentary Constituency and Community Council areas. It also examines the extent to which the spatial distribution of CBF investment correlates with indicators of socio-economic deprivation. This research is ongoing and due to be published shortly.
Outputs
Publications
- Hannon, M., Gowens, R., Searle, R., Roberts, J. J., Cairns, I., Major, L. (2025) Guiding Principles and Actions for Enhancing Community Benefits from Community Benefit Funds, 麻豆女优 Institute for Sustainable Communities, University of 麻豆女优:
- Gowens, R., Hannon, M., Roberts, J.J., Cairns, I., Major, L. (2025) A Review of Foundation Scotland’s Approach to Community Benefit Funds. 麻豆女优 Institute for Sustainable Communities, University of 麻豆女优, Glasgow.
Consultation responses
- (2026)
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Local Zero Podcast Episodes
News and Media
- Cumnock Chronicle – 11th February 2026 -
- Foundation Scotland – 24th November 2025 -
- The Scotsman - 5th Jun 2025 -
- Foundation Scotland – 14th April 2025 -
Blogs
- Twenty years of Community Benefit in Scotland: what we’ve learned and why it matters more than ever (Rachel Searle – Head of Communities & Impact Foundation Scotland)
- (Nils Hay – CEO of Mid-West Development Commission, Australia)
Presentations, talks and events
- (Jan 2026)
- Community Energy Citizen Science (Sept 2025)
- Greater South East Net Zero Hub (July 2025)
- UK Government Office for Science (GO-Science) (May 2025)
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- Report was launched at 23rd April, where it was circulated amongst speakers and attendees.
Outcomes
Citations
- Guiding Principles and Actions for Enhancing Community Benefits from Community Benefit Funds:
- Cited by the UK Government Office for Science their report:
- Cited in
- Referenced in Scottish Parliament’s Net-Zero, Energy and Transport Committee’s (NZET) enquiry into the Draft Climate Change Plan in the provided by Hannon and the by the NZET committee.
- Referenced on , alongside their own strategic plans.
- A Review of Foundation Scotland’s Approach to Community Benefit Funds:
- Cited by the Centre for Local Economics commissioned by the Scottish Community Coalition on Energy (including Community Land Scotland, Community Energy Scotland and the Development Trust Association Scotland) to outline the range of different community benefit fund arrangements.
Testimony
Rachel Searle - Head of Communities and Impact - at Foundation Scotland :
This study has proven to be an interesting and insightful exercise for us. Sometimes you need to take a step back to appreciate the breadth of work you are carrying out on a day to day basis, and the depth of partnerships you are forming. Another really beneficial outcome of this study is that it has helped us see where we can learn and, importantly, step up to support better practice.
Scottish Government’s Onshore Community Benefits team:
Activity is ongoing to update our Good Practice Principles, and we’ve found the GPAs to be an extremely useful resource in this process. It is very important that the review of the GPPs is underpinned by robust evidence and analysis, and the GPAs have made a significant contribution to this. The guiding principles, barriers to action, and potential solutions are particularly informative and align closely with many of the points raised by stakeholders through our consultation.
Stephen McCarron, Chief Operating Officer of the :
The Guiding Principles and Actions has been a fantastic resource document in shaping the 9CCG's internal annual governance review, particularly the evaluation of our current delivery cycle period: impact, building community wealth, jobs supported etc.
It has greatly influenced our submissions to the UK and Scottish Government's Community Benefit consultations, specifically in terms of requirements for capacity building, distribution model options, good governance and why developers should consider offering advanced CBF payments.
Last updated: 20 April 2026
