NEW windfarms could spring up across the north and north-east under plans to slash the cost of connecting to the National Grid.
The power industry regulator Ofgem unveiled proposals yesterday to cut tariffs paid by green energy generators in northern Scotland by up to 60%.
The move would save about £1.5million a year for a large windfarm in the north Highlands, Moray, Aberdeen and parts of Aberdeenshire, although Peterhead, Fraserburgh and Lochaber are in different zones. The northern and Western Isles would also not benefit from the changes, leading to fears last night that the islands could be left at a disadvantage.
Transmission charges account for 4% of household power bills, but the current system allows generators in southern England to pay lower rates because the National Grid has to invest more on infrastructure in the north. Ofgem’s proposals were broadly welcomed by politicians last night – although the prospect of accelerated development of windfarms could divide opinion in many north communities.
Scottish Renewables chief executive Niall Stuart said: “The current system discourages investors from taking forward projects in Scotland as costs are higher than elsewhere in the UK.” However, he added: “The charges quoted for the islands potentially make development uneconomic, meaning a number of highly-productive windfarms may not go ahead.”
Ofgem wants to rule out the use of a “postage stamp” formula whereby all generators would pay the same charge regardless of where they are located, saying it would cost UK consumers £7billion over coming years.
Scottish Energy Minister Fergus Ewing said: “The current unfair system of transmission charging will and must change and I urge industry players in Scotland to respond to the consultation.”
However, he added that the report did not go far enough and called for more work to find a solution for the islands.
Liberal Democrat MSP for Orkney Liam McArthur said: “Today’s announcement shows that the UK coalition government is making progress on an issue that has been ignored by ministers and the regulator for too long.”
The consultation will run until April and the new charging system could be up and running by 2013.
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