Pen Y Cymoedd
About Our Community Fund
How was the fund established?
When energy company Vattenfall were awarded the contract by the Welsh Government to develop the Pen y Cymoedd Wind Farm they agreed to establish an independently managed Community Fund to benefit those communities most directly affected by the development. Similar funds exist in other areas where wind farms operate, but with a guaranteed income of £1.8 million a year index linked (index linked means tied to rate of inflation so in 2025 was £2.5 million) until 2043, Pen y Cymoedd is the largest such fund in England & Wales.
The Fund is set up as a Community Interest Company, ensuring independence from Vattenfall and from existing structures, and as a not-for-profit organisation it ensures that resources are invested for maximum community benefit in priority local projects. From the funding awarded 74.5% is allocated to Vision Funding, 12.5% to Micro Funding and 13% to operational costs.
Which communities benefit from the fund?
Largely, communities eligible for support are those in the upper reaches of the Neath, Afan, Rhondda and Cynon valleys. A full list of towns and villages within our Area of Benefit can be found here.
We are interested in activity proposals that will have a positive impact on communities within this area of benefit. It is possible for applicants to be based outside the area, but the activity or project proposed must directly benefit communities within it. If you are unsure if your organisation or proposal ideas fall within the area, please contact us or see our Out of Area Guidance note – the fund area is set within the agreement and will not change.
Who can apply for funding?
Community: constituted community groups can apply to the fund. You could be a basic association, a CIC, a registered charity, a sports group, a Friends of Group or a Community or Town Council etc. What is important is that you have a constitution and a bank account (or credit union account) in the name of your organisation.
Business: we accept applications from sole traders, partnerships or Ltd Companies.
Although statutory bodies cannot apply for funding, we welcome projects or activities developed and delivered collaboratively. We welcome partnership working with the statutory sector.
We cannot fund individuals unless they are operating as a sole trader business.
What can't the fund support?
We do not consider:
- Activities that don’t have a direct impact on the area of benefit
- Applications from public sector bodies or activities which are the statutory responsibility of public sector bodies
- Applications from individuals other than those wishing to set up or develop a business, or undertake related training
- Political parties or political campaigning / any project or initiative that has a political or lobbying element
- Religious activities intended to proselytise
- Activities that contravene the law or promote unlawful behaviour
- The extraction of fossil fuel
- Anything that may cause reputational harm to the fund or farm
- Past expenditure / costs incurred for activities that have already taken place
- VAT that you can recover
In addition to contractual restrictions, we have adopted ethical exclusions based on UK evidence of potential harm and established best practice guidance, not on personal or moral opinion. These decisions are made in the interest of protecting public health, community wellbeing, and the environment.
We do not typically fund:
- Businesses or organisations that derive more than 10% of its revenue from tobacco / vaping-related activities (e.g., manufacturing, distribution, or retail)
- Sunbed shops or tanning salons (we can consider other activity based within the business that is not related to the sunbed use but if sunbed use income exceeds 10% of overall income we are unlikely to consider)
- Businesses or projects that significantly harm the environment
- Organisations or businesses that deal with young or vulnerable people and do not have appropriate Safeguarding processes and policies in place
- Any enterprise that is exploitative or promotes inequality
- We will consider applications from the following but with additional application questions and scrutiny needed:
· Aesthetic or cosmetic treatment businesses (e.g., Botox, fillers)
· Air Conditioning
Is match funding required?
No, match funding is not essential but of course, applications will be stronger if there is match funding and you should explore options but we encourage you to discuss this with us when we meet to discuss proposal.
Is multi-year funding available?
As a fund we consider capital or revenue and can consider everything from one off projects, pilot projects, core funding, large renovation projects or multi-year funding. What we are looking to understand is why what you are asking for is needed and what difference it will make.
How quickly will the decision be made?
Micro Fund: there are two rounds per year and decisions about whether or not to award funding are made within 6 weeks of each application round closing date.
Vision Fund up to £26,000: this remains a one-stage application and will go to the next available Board meeting and typically takes 1-3 months.
Vision Fund Over £26,000: this is a two-stage process, an initial Expression of Interest and then if invited, a second stage application. As this means two Board meetings, the process takes a minimum of 3-4 months but some people take up to 12 months to develop 2nd stage. The earlier you plan to speak to us the better.
Who makes the decisions and what happens if an application is declined?
How Decisions Are Made
All funding decisions are made by the Board of Directors. The Board is made up of people with the skills, knowledge, and local insight needed to ensure the Fund serves the communities effectively.
Our staff team is here to help you. They will:
- Advise you on your application
- Ask questions to make sure your proposal is as strong as possible before it goes to the Board
Even with support, approval is not guaranteed. Funding is competitive, and the Board considers many factors when making their decisions.
If Your Application Is Declined
If your application is not successful:
- You will be informed and provided with feedback
- You can speak to a staff team member for clarity or advice
Being declined does not prevent you from re-applying. You can submit a new application for a different project, or sometimes even the same project with more information. The staff team will guide you on this.
Appeals and Complaints
Because decisions are made collectively, based on many factors, and after careful consideration of the information provided in applications, we cannot reconsider a decision just because someone disagrees with it. Allowing appeals would undermine the fairness, consistency, and efficiency of the decision-making process.
However, if you feel your application or you were treated unfairly, you can submit a formal complaint. Complaints are carefully reviewed to ensure our processes are fair and transparent. However, even if a complaint is upheld, the outcome of the funding decision will not be changed.
What is the fund looking for when considering proposals?
When looking at proposals the fund has always and will continue to consider:
- Is the outcome something that is needed in the fund area (does it address a need or respond to an opportunity)?
- Has the applicant demonstrated they can deliver this project?
- Is this the right fund for the project?
if so, we also consider
- Is there evidence / consultation to support the proposal?
- Is it bringing added value to the community?
- Is the project viable?
- Is it sustainable* and, if not, what will happen next? (*Sustainable can mean financially but also socially, economically, culturally and environmentally sustainable)
The fund has always and will continue to:
- Encourage bids that are bold and ambitious
- Raise aspirations by identifying opportunities, nurturing potential and encouraging a can-do attitude
- Hold events to showcase what the fund has supported and allow communities to share experiences, and learn from their successes and challenges
- Look for initiatives that preserve and improve local assets (such as people, money, employment, and infrastructure) empowering local people to affect change
- Promote inclusivity and access and remove barriers to participation
- Work in partnership with a variety of people and organisations and complement statutory provision
- Take risks to pilot and test innovative and imaginative ideas
- Improve connectivity and connect communities
- Develop Pen y Cymoedd as a long-term investor in the area
- Encourage and promote environmental sustainability
Broadly the themes and priorities are:
Jobs and the Economy: The fund will promote and grow local businesses, create job opportunities and attract enterprise and investment to the area, creating high-quality, secure jobs.
Tourism: The fund will support proposals that promote, encourage, and support tourism to the area.
Climate and the Environment: The fund will support communities to care for and improve the natural environment, reduce environmental impact and become more sustainable.
Connections and Transport: The fund will support the development of improved, affordable, accessible, safe and sustainable travel options and transport infrastructure in the area, so local people can travel within their community and further afield.
Digital: The fund will support digital connectivity, skills and inclusion, and support proposals that use digital to meet other priorities. Communities will be better connected and included and influence digital take-up.
Culture and the Creative Industries: The fund will support the development of community spirit, increase cultural activities and widen participation to all, improve cultural amenities, encourage visitors and develop and encourage the Welsh language. The fund will also support opportunities to create and sustain employment in creative industries.
Health and Wellbeing: The fund will support proposals for physical and mental health and wellbeing provisions for all that are accessible and complement but do not duplicate statutory provision. The fund will help develop communities that are healthy and active and sustainable activities that achieve lifestyle change in these communities.
Community Spaces/Buildings: The fund will support the development and retention of community spaces and buildings (indoor and outdoor).
Skills, Development, Training and Learning: The fund will support the development and delivery of skills, training or learning that is relevant for our changing society, ensuring provision for residents of all backgrounds, ages and abilities.
Can I discuss an application with you?
Yes absolutely, we encourage all applicants to make contact with the staff team. We can advise over telephone, email or set up appointments face to face or online and love hearing about your ideas and sharing our thoughts and support.
The Fund is independent, and the Board of non-executive Directors cannot discuss applications directly with applicants. That is the role of our staff team, who are your main point of contact throughout the process.
Our Funding Priorities
Before the Pen y Cymoedd Community Fund was launched, we asked local residents and communities one simple question: “What could this Fund do to make a real difference here?”
The answers shaped our Prospectus — a clear statement of the communities’ vision, ambitions, and priorities. This isn’t our vision, it’s the communities’ vision: created by people who live and work here, who know the area inside out, understand its strengths, and see the gaps where support is needed.
We refresh this vision every five years, but we don’t wait that long to listen. We’re always welcoming feedback, insights, and ideas from communities so the vision stays current and relevant.
Pen y Cymoedd is committed to long-term investment in people, places, and businesses, helping the fund area thrive. Over the past decade, we’ve laid a strong foundation. In the next ten years, we aim higher — moving from change to transformation, driving bold ideas, and creating lasting impact for generations to come.
Our Vision: A dynamic, exciting, vibrant place to live and work.
Our Mission: To invest in the community’s vision, using our resources and influence to strengthen and sustain the economic, social, cultural, and environmental assets of the area.
Meaningful change takes time. That’s why Pen y Cymoedd focuses on long-term, collaborative investment — shaping the valleys into a thriving, resilient region where people, communities, and businesses can flourish.
About the Pen y Cymoedd Wind Farm
The Pen y Cymoedd Wind Farm is the largest onshore wind farm in England and Wales. Located in South Wales, it has 76 turbines and a co-located battery, producing clean, renewable energy.
The site is also home to an important peatland restoration programme, covering around 1,500 hectares. This work is part of the project’s Habitat Management Plan and aims to restore peatland over time, supporting biodiversity and the environment.
Vattenfall, the European energy company that owns and operates the wind farm, committed to creating a community fund that is independent and focused on long-term positive change for local communities. While the Fund operates independently, we work closely with Vattenfall through a grant agreement and enjoy a strong, collaborative relationship.
The wind farm sits on the Welsh Government’s Woodland Estate, attracting walkers, hikers, and mountain bikers each year. Local trails offer stunning views and easy access for visitors. School groups regularly visit to learn about renewable energy and peatland restoration, helping inspire the next generation of environmental stewards.
The wind farm also brings local employment opportunities. Around 15 staff work on-site, including trainees, wind farm operatives, engineers, and warehouse managers. These roles provide quality jobs for the local community, helping build skills and experience in renewable energy. Across Europe, Vattenfall employs approximately 21,000 people, bringing global expertise and investment to support sustainable energy and local development in the valleys.
For more information visit: Pen y Cymoedd Wind Energy Project – Vattenfall
Image to the right – © Crown Copyright
Quick Links
- @Get Inspired
Read case studies and inspiring stories about the groups, businesses and activities supported by the Community Fund.
See Our Case Studies
- @Upcoming Events & Latest News
Catch up with the latest Pen y Cymoedd CIC events and keep up to date with the latest developments!
See the Latest
- @Apply For Funding
Learn more about the fund and download a grant application. You can also submit your completed application through this website!
Click Here to Apply
The Latest From Pen y Cymoedd
Stay up to date with the Pen y Cymoedd Community Fund — find the latest news, project highlights, and success stories from across the Neath, Afan, Rhondda, and Cynon Valleys. Discover how local ideas are creating real impact in our communities.