Strengthening local ties with wind power community funds

Strengthening local ties with wind power community funds

Background

From the planning phase and construction through the operational lifetime, ensuring that local communities are appropriately engaged throughout a project’s lifecycle is crucial to the long-term acceptance of wind projects. After all, residents and wind farms are often living side by side for 25 years or more.

ESG in action

Beyond that, community benefit-sharing mechanisms, such as local funds that invest in community groups and initiatives, can align renewable energy development projects with the interests of those living nearby.

At a group of five wind farms across Norway, Sweden and Finland, EIP’s partner on the ground actively apply this approach.

Managed by Fortum, a leading Finnish energy company, the group of wind farms is a major renewable energy investment with a combined capacity of 348 megawatts, made possible through strong community support. To boost benefit sharing, Fortum and EIP have established community funds for multiple sites, which support sports, cultural, environmental and youth initiatives.

At the Ånstadblåheia wind farm near Sortland, active since 2019, funds are distributed on a yearly basis and applications are reviewed by Kulturfabrikken Sortland, a cultural organization in Sortland, to reflect local priorities. In 2024, NOK 550,000, or about EUR 50,000, was awarded to 9 projects during a ceremony attended by representatives from EIP. Projects range from the renovation of a community centre, to support for an orienteering team and a snow machine for the local ski club.

Outcome

The community funds offer a way to share some of the benefits of wind power with local communities. This contributes to maintaining trust and furthering local value creation in the area, a point which the mayor of Sortland also acknowledged during the project ceremony.¹

Note: Case study for illustration purposes only. Holdings are subject to change, this does not constitute investment advice to buy or sell the presented securities.