Scottish Power has axed plans for a massive offshore windfarm near Tiree after admitting wind technology was not good enough to make it viable.
The £5billion Argyll Array project, which was expected to generate 1.8GW of electricity, has been on the drawing board for four years.
But after a technical and environmental review over the last 12 months by the energy firm, the project has been shelved – with Scottish Power admitting it could be another 15 years before offshore wind technology was at a level to make the windfarm cost-effective.
It marks another blow for developing major offshore wind projects in the UK, following RWE’s decision to scrap the 1.2GW Atlantic Array last month for similar cost issues.
“We believe it is possible to develop the Argyll Array site, it has some of the best wind conditions of any offshore zone in the UK,” said Jonathan Cole, Scottish Power’s head of offshore wind.
“However, it is our view that the Argyll Array project is not financially viable in the short term.
“As cost reductions continue to filer through the offshore wind industry and as construction techniques and turbine technology continues to improve, we believe that the Argyll Array could become a viable project in the long term.”
“The rate of progress in development of foundation and installation technology has been slower than anticipated.
“The current outlook for offshore wind deployment in the UK suggests this will not significantly improve in the short term. This supports the view that it could take 10-15 years for the required technology improvements to be available for this project.
The project, around 5km off the coast of Tiree, would have seen 300 turbines being installed across a 360 sq km area, producing enough energy to power 1million homes.
The review into the project found that, despite the location offering prime conditions for wind power, the nature of the seabed and wave conditions would make construction work problematic.
Environmental issues raised by a key basking shark group in the area would also have impacted on development.
The move comes after RWE dumped plans last month for the £3billion Atlantic Array, which would have seen 240 turbines being built off the Devon coast in the Bristol Channel.
Financial and technical concerns were also cited by the developer for scrapping the project, leading to warnings at the time from coastal water managers The Crown Estate that other projects would likely fall by the wayside.
Today the Crown Estate’s head of Scottish energy said the decision to shelve the scheme was the right one.
“While there is an excellent wind resource at the Argyll Array site, both organisations agree that the project should not proceed at this point in time,” said Ronnie Quinn.
“Developers have to take a wide range of factors into account when preparing to apply for planning consent – this decision by The Crown Estate and SPR follows a very thorough assessment of all those factors.”
Despite the decision to axe the Tiree site, RenewableUK deputy chief executive Maf Smith insisted the offshore wind industry remained healthy.
“The fact that not all wind farm projects go ahead is a natural part of the development process,” he said.
“Some encounter physical obstacles or financial challenges which mean that they aren’t viable for the time being – although they will be in the future, as cutting-edge wind turbine technology is developing at an astonishing rate.
“Other projects of course go ahead – only yesterday DONG Energy announced it had bought Centrica’s stake in Race Bank offshore wind farm, demonstrating that there’s a vibrant market for such projects.”
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