Viking wind farm finances

Project cost estimated at £600m.

Viking Energy Ltd (a company owned by Shetland Charitable Trust) share of the project is £300m

Shetland Charitable Trust has assets of around £220m. Majority of money currently invested on equity markets and subject to rapid change outwith control of Charitable Trust. Current return target is £12m a year.

Proposed initial spending from community funds is £60m. This represents about 27% of total assets. It is also equivalent to 5 years planned charitable expenditure. Nobody is saying what happens to current charitable spending whilst the project is in construction phase.

Total project share of community funds represents 136% of assets, ie. more than we have in the bank...

Sustainable Shetland considers this wind farm a reckless gamble with community funds, at the expense of the Shetland environment.

Charity payments for landowners?

There is a fear that offers of rent and payments to landowners, in advance of any actual revenue from the project, effectively means that some of the money these individuals receive, are paid from the funds of the Shetland Charitable Trust.

So whilst some individuals may be cashing in on this project, the people and organisations of Shetland who rely on Charitable Trust funding may find there is less to go around than before the Viking Energy project appeared. This situation could last for 8 to 10 years after construction begins, and before the project generates actual revenue. Far from being a bounty for Shetland, it could be austere times ahead for the many, to finance this gamble for the benefit of a few.