Land is being sought around Anstruther for a wind turbine which could generate £2 million to be spent in the area.
Community leaders are pressing ahead with plans for a renewable energy scheme after a feasibility study found that a turbine could be viable.
The research, by consultants Green Energy, ruled out the use of micro-hydroelectricity and photovoltaic technology.
But Kilrenny, Anstruther and Cellardyke Community Council is hoping that a 45-metre community turbine could be built.
As well as generating green power for local homes, this could raise £100,000 a year over its 20-year lifespan.
One site the community council hoped could be used is unavailable and the hunt is on for another plot that will offer a generous wind resource.
Once a location is found, it is intended to canvass the views of people who live in Anstruther, Cellardyke and Kilrenny, and further investigate the potential cost of such a venture.
Community council secretary Martin Dibley told The Courier, “We are looking for a site and we will then consult with the community.
“Based on people’s views, we will take this forward or not.
“The project would have to have the support of the community.
“If this is what people want, we would have to set up a community trust to run it.”
Community wind farms make profits for their host communities as power is sold to the National Grid.
In Newburgh, a wish list is being drawn up for spending money generated by a proposed three-turbine wind farm. One aspiration is the reopening of the town’s rail halt.
Hoping local people will approve the scheme, Mr Dibley said cash raised could be used to benefit Anstruther, Cellardyke and Kilrenny in many ways, including ensuring the future of a local care home.
He said, “This would bring in £100,000 a year for 20 years, money which must be spent in the community for the community benefit.
“It has been suggested that the profit could help maintain our town halls or keep Ladywalk House open.
“If people wanted better play park facilities, for example, it could be used for that.”
Another option being considered is collaborating with St Monans and Crail, which are also considering community wind turbines, on one larger project for all three areas.
A further report has been commissioned looking at a joint renewable energy scheme between several East Neuk communities.