Rising energy costs, renewable generation and grid capacity are changing the way farms and crofts do business. NFU Scotland Vice President Duncan Macalister shares what first sparked his interest in renewables, where he sees the opportunities and the practical advice he'd give to members. Duncan farms on Kintyre and runs a joint venture in partnership with Fyne Energy with three turbines that deliver seven and a half megawatt.
1. Why has energy become such an important issue for Scottish agriculture?
Energy is no longer just another business cost – it's become a strategic issue. Our members are looking at how they can reduce costs, improve efficiency and, where possible, generate their own power. At the same time, we're facing major challenges around grid capacity and connections, so it's an issue that affects almost every business in one way or another.
2. What first got you interested in renewable energy?
Living opposite Gigha, we watched the island develop its renewable energy project. This is going back nearly 20 years now. They bought three second-hand wind turbines from Cumbria and put them up on Gigha.
We found out what they'd paid for them – they were relatively cheap – and then we found out how much they were making. At the time, they were generating around £200,000 a year profit for a £400,000 capital investment. I remember thinking, "Hang on a minute, I can do this. Why can I not do this?" It really opened my eyes to what renewable energy could do for rural businesses and communities.
3. Where do you see the biggest opportunities for farmers and crofters in renewable energy?
There are opportunities across all these technologies – solar, wind, biodigesters and hydro. Hydro, in particular, can work brilliantly for smaller-scale schemes, and many farms and crofts may have an untapped resource without even realising it. Renewables won't be right for everyone, but it's worth taking a fresh look at what's possible on your own business. Technology is moving so quickly that an option which didn't stack up a few years ago might now be worth another look. The opportunities are there if you're prepared to ask the questions.
4. Where should members start if they're thinking about investing?
Do your homework. Find the people who know how to do it or find someone who's already done it and ask them who they spoke to. As members, we are generally very good at sharing their experiences, and that's one of the strengths of being part of NFU Scotland. There's a huge amount of knowledge across the membership if you're prepared to ask.
5. One piece of advice for members looking to improve their farm's energy efficiency?
Do a carbon audit and see what it says. Get somebody who's good at it and knows about it because that's about energy efficiency. They might highlight things you could save on – because, when it comes down to it, saving money is the same as making money.