Scotland Bets Big on Offshore Wind

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Scotland has given the green light to four offshore windfarm projects with the potential to supply enough power to more than 1.4 million homes.

Energy Minister Fergus Ewing announced that permission has been granted to four projects - Neart Na Gaoithe, Inch Cape Offshore Limited, Seagreen Alpha and Seagreen Bravo - all located in the Forth and Tay region. They have a potential combined generating capacity of 2,284 megawatts (MW) and represent one of the largest rounds of offshore licensing for Scotland.

Scotland has an ambitious goal to generate the equivalent of 100% of its electricity from renewable sources by 2020.

The consented windfarms are:

• Neart na Gaoithe, which will be located 15.5km east of Fife Ness coastline, will have no more than 75 wind turbines. It will have a generating capacity of up to 450 MW and will power approximately 288,400 homes.
• The Alpha and Bravo Seagreen developments combined will consist of up to 150 wind turbines with a total generating capacity of up to 1,050 MW. They will be located 27-38km east of the Angus coastline and will be able to power more than 670,000 homes.
• The Inch Cape development will feature 110 wind turbines and have a generating capacity of up to 784 MW. Located 15-22km east of the Angus coastline, it will more than 500,000 homes.

"Renewable energy is extremely valuable to Scotland's economy, to reducing our carbon emissions and in providing low carbon energy supplies, as well as jobs and long term investment," Ewing said. "These windfarms alone could generate a combined gross value added of between £314 million ($505 million) and £1.2 billion ($1.9 billion) in Scotland over their lifetime, and generate between 2,567 and 13,612 jobs within Scotland during the construction period. Granting consent for these developments will enable them to bid for an offshore wind contract for difference (CfD) under the U.K. Government's Electricity Market Reform process.

He added: "The budget for offshore wind (and other less established technologies) in the first of these rounds scheduled for autumn is £235 million, thought to be enough to support around 800 MW of offshore wind in U.K. waters."

Ewing complained that U.K. government support for new nuclear power will restrict funding for offshore and other renewables.

"The level of support available to the offshore renewables sector sits in stark contrast to the unprecedented financial backing being offered to new nuclear plants, with a possible £35 billion subsidy for the new Hinkley Point C station alone in addition to a £10 billion loan guarantee. This inevitably means that growth in green energy will be restricted, a sector where Scotland has a competitive advantage. In addition, the lack of a 2030 decarbonisation target until at least 2016 leaves a high degree of uncertainty for investors and could adversely impact investment and development of projects."

Last week, the European Commission ruled that the U.K.'s support for the proposed £16 billion ($25.8 billion) Hinkley Point C nuclear power project did not breach E.U. state aid rules. For additional information, see October 9, 2014, article - Europe Green Lights U.K. Nuclear Project.

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