Projects in Scotland’s “marine energy park” are being threatened by high electricity transmission charges, according to an industry body.
Scottish Renewables (SR) says island communities continue to face “massive costs” to connect tidal and wave schemes to the grid. Study findings due to be unveiled by SR at today’s Marine Energy Conference (MEC) in Inverness show charges in the Pentland Firth and Orkney waters are expected to rise despite moves by energy regulator Ofgem to reform the regime.
SR chief executive Niall Stuart said: “The level of charges for Orkney waters is adding significant costs to wave and tidal projects and can only hold back investment in our world-leading marine-energy sector. We have to remember that our islands are where some of our best natural resources are.”
According to SR’s estimates, projected annual connection charges for the Pentland Firth and Orkney waters will increase from £56million last year to £107million in 2020.
This contrasts with an annual subsidy of about £2million if a project is built in the UK’s other marine-energy park in south-west England.
SR says mainland connection charges for the Pentland Firth have fallen by £4.6million a year, but charges are said to have risen massively in Orkney waters, because electricity generators on the islands are required to pay for local works such as expensive undersea grid cabling.
Launched in 2010, Ofgem’s review Project TransmiT is meant to help with the generation of green energy by cutting charges from the mainland by 60%. Critics say schemes in the Outer Hebrides and northern isles could end up paying up to seven times more than those on the mainland.
The MEC, at Eden Court today and tomorrow, will also hear from Highlands and Islands Enterprise chairman Lorne Crerar, who will say the north is leading the world in marine-energy development and deployment.
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