The boss of Scottish wave energy firm Aquamarine Power has criticised Ofgem for measures which will cost it millions of pounds for a huge Western Isles project.
The company plans to install up to 50 devices on the seabed off Lewis in a development which could power 38,000 homes, but said it faced a “massive penalty” following a consultation held by the energy regulator.
Ofgem said last week the transmission costs electricity generators pay would be based on where their developments were based.
Martin McAdam, chief executive of Aquamarine Power, said it meant his firm could have to pay £3.5million a year for its Lewis plans, while a similar project in southern England would pay just £40,000 a year.
He said Ofgem’s proposals, which are open to consultation for another six months, were “out of kilter” with efforts to make renewable energy projects viable.
Mr McAdam said: “This is a real disappointment for all renewable energy projects in Orkney, Shetland and the Western Isles, and presents a real challenge to Aquamarine Power – and the UK’s nascent marine energy sector.”
Mr McAdam added it was a “bitter pill” that Ofgem would penalise projects in Scotland’s islands, which he described as home to “some of the best wind, wave and tidal resources not just in Britain, but in the world”.
He said: “The economics of these first wave energy projects are challenging enough – and we have all the other arms of government, from the Department of Energy and Climate Change to the Scottish Government, Marine Scotland and local councils, doing their bit to help this industry get off the ground.
“It is a big disappointment that Ofgem’s proposals are so out of kilter.”
Mr McAdam said Aquamarine Power would continue to work with the Scottish and UK Governments to “find an equitable solution for Scotland’s islands”.