Subsidy rates for Scottish island windfarms have been described as a “missed opportunity” with politicians warning a one size fits all approach could hinder wind project development.
Energy minister Fergus Ewing and council leaders from the Western Isles, Shetland and Orkney islands will hold an energy summit early next year to discuss the implications of the UK Government’s recent announcement of additional support for Scottish island wind.
The Department for Energy and Climate Change (DECC) recently confirmed the renewables strike prices with island wind projects set to receive subsidy support of £115/MWh, compared to £90/MWh for projects on the mainland.
Although the extra support for island wind projects is welcomed, the Scottish Government and council leaders say they are concerned a “one size fits all approach” will fall short of what is required for wind projects to proceed in all of the islands.
“The evidence that has under-pinned work to date sets out different requirements for each of the islands and we had expected to see different strike price arrangements for each to reflect this,” said energy minister Fergus Ewing.
“Developers will now need to assess whether this support will work for them. If, as evidence suggests, it will not, I will work with all of the Scottish island councils, and will move swiftly to bring UK Ministers and all interested parties together to assess whether anything further can be done to help deliver a positive outcome for each island group.”
He said the UK Government strike price decision could result in a huge missed opportunity if it does not work for all three of the Scottish island groups.
“Renewable energy on Orkney, Shetland and the Western Isles has the potential to provide up to 5% of GB electricity demand by 2030, and create tens of thousands of jobs,” said Mr Ewing.
Comhairle nan Eilean Siar (Western Isles) council leader Angus Campbell said: “The Comhairle wholeheartedly supports the Scottish Government in its call for a summit in early 2014 to bring all interested parties together to assess the position and to ensure that an approach and mechanisms are put in place to ensure developer confidence is maintained and that there is a clear timeline for interconnector implementation.”
Orkney Islands council convener Steven Heddle said with the right support in place, developers will commit themselves to commercial-scale wave and tidal projects offshore Orkney.
“New grid connections are vital if Orkney is to fulfil its huge potential for energy generation from the seas around us,” he said.
Shetland Islands council leader Gary Robinson said the summit would offer an opportunity for positive dialogue between all parties to develop a solution which can work for all three of Scotland’s island groups.
A UK government spokesman said: “We are working directly with the islands councils and potential investors to leverage investment in renewable energy in the Scottish islands.
“For the first time, a special strike price has been set for the Scottish islands, recognising their potential in renewable energy. Discussions with investors and councils continue on how to make sure that projects go ahead.”
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