FAQ

1. The Hydro Scheme

Where is the Abhainn Greadhain community hydro scheme?

It is in Glenachulish, to the south of the Ballachulish bridge. The water intake is at an altitude of 150m and of a relatively low design, due to the shape of the river. The penstock (pipeline) route is buried and heads down the glen to the powerhouse near the forestry car park.

How much electricity does it produce?

The scheme produces about 547 kW if running at full power. In 2024 the scheme produced 1,173,884 kWh, that's enough to power approximately 435 households with electricity for the year.

What type of Hydro Scheme is It?

This is a ‘run-of-river’ scheme so there is no reservoir at the top as in the large schemes around Lochaber. These are among the cleanest forms of energy generation available.

What happens to the surpluses generated by the Hydro?

The financial surplus from the Scheme, once the loan repayments and operational costs are met, are gifted to Lochaber Environmental Group to support its sustainability and that of its environmental projects across Lochaber. A proportion of the surplus will also be given to the local communities of Ballachulish which includes Glenachulish. LEG’s work on sustainability, energy efficiency, local food production, education and other areas is a great way to use surpluses from a renewable energy scheme.

Were any trees felled during construction?

During construction there was some felling of trees to get machinery in for laying the penstock. The vast majority of the trees felled were commercial plantation and were nearing their ‘harvest’ time. These are being replaced 1 for 1, though Forestry and Land Scotland (previously Forestry Commission) has the authority to say where they go and what species are planted.

Is the powerhouse which houses the turbine noisy?

The powerhouse has special features to reduce noise, which is necessary when sited near people’s homes.

What happens to the electricity which is generated?

The electricity generated by the scheme will be sold to the grid, and then be part of the mix we use in our homes and businesses.

How did LEG Power Lochaber raise the funds to build the Hydro Scheme?

LEG Power Lochaber issued a Community Share Offer to raise the funds required. £1.8 million was raised in 2021, with priority given to local applications. More than 500 members invested in the Share Offer.

How else has the project been funded?

LEG and LEG Power Lochaber have been supported by Local Energy Scotland with a grant and loan through the Community and Renewable Energy Scheme (CARES). Their support was essential to enable small community groups take on such a large project.

In addition, Community Shares Scotland has provided help in kind for the registering of LEG Power Lochaber as a Community Benefit Society and a grant for promoting the Community Share offer.

2. Community Shares

What are Community Shares?

Community Shares are a practical way of supporting a local enterprise that serves your community: they have been used by communities across Scotland. The share capital will help finance the business and in return you might receive limited interest on your investment. And if you want your money back you have the right to withdraw some or all of your share capital, subject to terms and conditions.

Why did Lochaber Environmental Group set up a new organisation called LEG Power Lochaber?

Community shares can only be issued by co-operatives or community benefit societies. Lochaber Environmental Group (LEG) created a community benefit society, known as LEG Power Lochaber, to take forward the hydro-electric scheme at Glenachulish and to raise funds for the community. LEG Power Lochaber will be able to issue community shares to raise the funds needed to build and operate the hydro-electric scheme. It will also be able to develop other renewable energy schemes in the future and issue more community shares to maximise community ownership and involvement.

What happens to the surplus income from the Hydro?

As the Scheme begins to generate a financial surplus, this money will provide a sustainable income to Lochaber Environmental Group and its environmental projects, as well as a proportion being allocated to the community in which the Hydro scheme is situated.

What is different about Community Shares?

The primary motivation for buying community shares is usually different from that of shareholders in companies: it is to support the social purpose and objects of the enterprise which benefit the community. Financial motivation is at best secondary though the rate of return is expected to be reasonable.

Community shares refer to a distinct type of share capital called Withdrawable Shares and they behave differently to conventional share capital, (which are also known as ordinary or transferable shares). The difference is explained below:

Transferable Shares: most companies financed with equity use a form of share capital known as transferable or ordinary shares, which can be transferred or sold by shareholders to a third party. Investors buy shares in the expectation of two types of financial return: a regular dividend on shares, and the possibility of capital appreciation, in which case they would expect to sell the shares at a higher price than they paid for them. This is the most common form of share.

Withdrawable Shares: withdrawable share capital is completely different. This type of share capital cannot be transferred between people. Instead, the society allows shareholders to withdraw their share capital, subject to terms and conditions that protect the society’s financial security. Shareholders in LEG Power Lochaber are allowed to withdraw their share capital, subject to cash availability and board approval.