Glen Earrach Energy (GEE), the developer behind one of the UK’s largest pumped storage hydropower projects, has announced it will allocate 5% of its gross margin revenues to support communities in the Highlands. The commitment, worth more than £20 million annually, will create the largest community wealth fund in the UK energy sector.
The funding pledge will apply throughout the operational lifetime of the project, which is expected to deliver up to 34GWh of long-duration energy storage by 2030. The project is designed to help balance the grid and support the UK’s net zero transition.
According to Glen Earrach Energy, the Community Wealth Fund has been shaped by consultation with local residents and organisations, as well as national polling. Engagement with communities began in May 2024 through drop-in sessions in Glen Urquhart, Stratherrick and Foyers, followed by a formal consultation and expert roundtables in 2025.
The fund is intended to reflect the values and needs of the region. “The GEE Community Wealth Fund is about more than sharing the benefits of clean energy, it is about creating long-term value for the communities who make this project possible,” said Roderick MacLeod, Director of Glen Earrach Energy. “We have listened carefully to local priorities and worked with communities and partners to develop a model that is transparent, independent and built for the future.”
The fund will focus on areas identified through consultation, including housing, infrastructure, jobs, environmental restoration, and community wellbeing. GEE is working with organisations such as community councils, the Highland Council, Soirbheas, and Foundation Scotland to finalise the fund’s governance structure.
Polling commissioned by GEE in February 2025 supports the initiative, with 71% of Scots backing community benefit funds tied to renewable energy projects. Additionally, 73% said decisions on how the money is spent should be made by the community rather than government or developers.
Angus MacDonald MP, who represents the area and has advocated for stronger community benefit frameworks, welcomed the announcement. “In my maiden speech to Parliament, I proposed that 5% of revenue from new renewable projects should go to the communities that support them,” he said. “Glen Earrach Energy committing to 5% of gross margin is recognition that communities deserve a meaningful stake in the transition happening around them. This shows what’s possible when developers take local leadership seriously.”
Rachel Searle, Head of Communities and Impact at Foundation Scotland, called the initiative “a pioneering and ambitious community benefit opportunity.” She added: “Glen Earrach Energy have achieved this through their own rooted understanding of the area, their considered engagement with stakeholders – especially those communities most directly impacted by the project – and an openness to building on and learning from what’s gone before.”
The Community Wealth Fund will also contribute to wider regional initiatives, with potential support for a Strategic Fund for the Highlands. GEE states that the fund will align with the Highland Council’s Social Value Charter, aiming to be “independent, accountable and built to last.”
