The developer of a 2GW hydro project in Scotland has launched a public consultation to help shape a £20m-a-year community benefit fund.
Glen Earrach Energy (GEE) is developing the £3bn pumped storage hydro (PSH) project at Balmacaan Estate, next to Loch Ness.
The company is now giving local residents, businesses and organisations the chance to influence how decisions are made for the associated community benefit fund, the largest of its kind in Scotland.
Applying the Highland Council’s Social Values Charter, the fund would provide over £20m per year, ensuring direct investment in the communities closest to the development as well as the wider region.
The consultation survey is an opportunity for local communities to shape how the fund is structured, managed, and allocated.
Pumped storage hydro provides reliable large-scale energy storage but requires substantial investment.
However, the site’s natural topography allows for a more efficient design with a higher hydraulic head, meaning it can generate and store energy at a lower cost per unit than other projects.
This efficiency translates into greater economic returns, which is why GEE will be able to deliver a much more substantial community benefit package.
Angus MacDonald, MP for Inverness, Skye and West Ross-shire, welcomed the consultation.
He said: “The Highlands play a crucial role in the UK’s transition to renewable energy, yet too often, the economic benefits of these developments do not stay in the communities that host them.
“It is only fair that local people see real and lasting benefits from the projects built in their area.
“This community consultation is an important step in ensuring that the substantial funding available from the project delivers meaningful, long-term investment for the region.”
GEE director Roderick MacLeod added: “Pumped storage hydro projects are vastly larger in scale than traditional onshore wind farms, both in terms of capacity and longevity.
“Our project alone will generate the equivalent output of all operational onshore wind farms in the Highland Council area, or around 800 turbines.
“Given the sheer scale of this investment, it’s only right that the economic benefits match that scale, ensuring communities receive meaningful support over the lifetime of the project.
“We expect our community benefit fund will far exceed the £9.1m distributed by the entire Highland wind energy sector last year.
“However, at this stage, we want to be open to all views on how the fund should be structured to support best the communities that host major renewable developments.
“We recognise that the best approach to community benefit is one designed with the people who will receive it.
“A fund of this scale presents an opportunity to support local services, infrastructure, and long-term investment, but it also raises questions about governance, priorities, and distribution.
“One of the greatest strengths of pumped storage hydro is its longevity. Properly maintained, these projects can operate for well over a century.
“That means communities must see benefits not just in the short term, but for generations.
“This consultation is a key step in ensuring that we get this right, delivering a funding package that supports long-term prosperity in the Highlands.”