Scotland’s offshore wind sector has been given a boost after the developer behind a major project off the coast of Fife said it was close to securing finance for the scheme.
Mainstream Renewable Power said the 450MW Neart na Gaoithe offshore windfarm, located around 15.5km off the coast of Fife, will reach financial close this year.
The Irish developer said preliminary construction work for the windfarm, which is expected to power more than 325,000 homes, will begin later this year.
MRP said the Scots project was among eight schemes across the globe set to secure finance, worth an estimated £2.6billion, and begin construction this year.
Last month Scottish Renewables warned the offshore wind sector had been “left in limbo” with developers more than halving their spend in the sector – annual investment in Scottish offshore wind projects fell 55% in 2013 to £28.9million, from £63.6million previously.
The stark warning came a week after Scots energy giant SSE revealed it was reviewing its offshore wind energy portfolio, warning that prospects for investment in Great Britain were “not encouraging”.
The firm said uncertainty over government support for offshore wind would result in reduced capital investment in coming years.
This follows Scottish Power’s decision, in December last year, to axe plans for a massive 1.8GW windfarm off the coast of Tiree – the £5billion Argyll Array.
Scottish energy minister Fergus Ewing has repeatedly hit out at the UK Government’s decision to exclude the Neart na Gaoithe scheme and other Scots offshore wind projects on a list of ‘provisionally affordable’ schemes.
Only one Scottish scheme – the proposed Beinn Mhor onshore windfarm on the Eisgein Esate on the Isle of Lewis, was included in the list which aims to determine what projects will be the first to secure subsidy support under the new Contract for Difference, developed as part of electricity market reform.
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