Scottish and Southern Energy (SSE) said yesterday that, as UK Government proposals to subsidise wind energy projects currently stood, the company might miss out on support for its £1.3billion Greater Gabbard offshore windfarm.
But a spokesman for the Perth-headquartered SSE said talks were still going on with the Department of Energy and Climate Change (DECC).
He said a decision on support for Greater Gabbard, where construction has begun off Suffolk and which will be Europe’s biggest offshore windfarm when completed, had not yet been taken.
He added: “A consultation is under way with the industry and we’re talking to DECC about whether Greater Gabbard might qualify in future.”
Chancellor Alistair Darling announced in the April Budget that an extra 33% in incentives would be made available for offshore wind energy.
This means an extra £525million over a period of 20 years for windfarm developers, but that sum will only apply to projects for which wind turbine orders are placed between April 2009 and March 2010.
SSE had already ordered turbines and other equipment before the announcement was made.
The power company’s plans include the installation of 140 turbines, 14 miles offshore at Greater Gabbard, capable of producing 500 megawatts of electricity, enough to power a city of 500,000 people.
DECC says it believes where contracts were agreed before the Budget announcement was made this was on the basis that projects were commercially viable.
A spokesman said, however, that DECC would continue to consult with companies and take industry views into account.
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