The Government is consulting on whether remote island wind should be treated separately from mainland onshore wind, and therefore allowed to compete in forthcoming auctions for low-carbon generation.
SSE, along with various other companies, have penned a joint-industry letter urging the UK Government to classify non-mainland wind separately from mainland onshore wind, allowing the sector to compete in future Pot 2 auctions taking place during this Parliament.
The non-mainland wind category includes projects on the Scottish Islands of Orkney, Shetland and the Western Isles.
Three key considerations are highlighted in the letter, including;
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• Non-mainland wind projects are significantly different to other onshore wind projects, across the key factors that determine how a technology should be classified for the Contracts for Difference (CfD) scheme.
• The schemes are committed to developing a robust cost-reduction pathway and there is now real potential for cost reduction from these projects. Being closer to completion, developers have a more accurate view of costs and are now benefitting from lower cost of capital than was assumed when the remote island strike price was set at £115/MWh in 2014.
• The projects could be delivered through a significant reliance on the UK supply chain and have already identified a sizeable number of UK based businesses to contract with and supply components to our proposed projects.
The letter states: "Scotland has a long tradition of renewable energy development, with a world-leading skilled workforce capable of building projects at scale. The UK Government has been an active supporter of this and has worked with the industry to create a great Scottish success story. Remote island wind is, we believe, the next stage of the development of this industry.
"These sites are home to some of the best conditions in the world with high wind speeds and productivity capacity factors over 45% providing value for money to the consumer and enhanced decarbonisation benefits. The resources on the islands are under-used and this is our opportunity to tap into them and bring jobs, low- carbon energy and a sustainable supply chain to remote parts of the UK."
(LM/MH)
