Community / Charitable trust could earn as much as £2 million from Viking investment, SSE confirms
SHETLAND Charitable Trust is in line to receive up to £2 million a year from its small share in the Viking Energy wind farm, it has emerged.
The charitable trust has always kept how much it will earn from its initial financial stake in the wind farm a well-guarded secret.
The trust was set to be a 45 per cent partner in the £600 million project but felt it was unable to follow suit when SSE Renewables made its investment decision in June 2019 with no Contracts for Difference (CfD) guarantee in place.
However, SCT retained its initial stake of around £10 million and negotiated a “preferred return” on that investment.
Earlier this week, as part of a query about community benefit, Viking developer SSE confirmed to Shetland News that the trust would receive a “percentage of revenue” on an annual basis for the 25 years the wind farm is expected to operate.
SSE would not reveal what that percentage is, but assuming the £2 million figure is realistic, the trust could earn as much as £50 million over the wind farm’s lifetime from its initial £10 million investment.
A company spokesperson said: “In addition to the Viking Community Benefit Fund, Viking Wind Farm also provides a preferred return on Shetland Charitable Trust’s initial financial stake in the wind farm each year for its lifetime.
“This could be worth up to £2m per full year of generation.”
The trust would not confirm this figure, but it aligns with a claim made by former councillor and Viking director Drew Ratter in a podcast last year.
SCT has always maintained that the amount and future payments would become public knowledge once published in trust papers.
A first payment is expected to be received by the end of the year or into early next year.
“SCT’s financial planning does not include assumptions or expectations about the level of income from its preferred annual return from Viking,” the trust said on Wednesday.
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