Scotland has long been at the forefront of European wind energy and in  a new boost to encourage new wind farms, developers will be given a cash incentive to build turbines on Scottish islands

The UK energy secretary Ed Davey said there would be a higher subsidy for projects in Shetland, Orkney and the Western Isles than on the mainland of Scotland. The proposal would set a “strike price” of £115 per mega watt hour (MWh) for onshore wind. Scotland could be looking at an additional 400 MWh for the grid.

Cash Incentives for Wind Farms on Scottish Islands

Davey said

“It’s going to enable them to develop these windfarms, to sell that electricity, that green energy, and they will create jobs and economic activity.”

The so-called strike price of £115 is higher than the £100 proposed for the UK mainland in 2014-15. How it works: If the market price for energy is below the level of the strike price, a subsidy system kicks in to ensure the producer has a minimum level of income. This is the first time that the UK Government has announced a different strike price for a particular area of the UK. This is said to represent the unique circumstances and potential of the Scottish islands. These include very few people, very little industry/income, and great wind.

The proposals were given a cautious welcome by renewables, environmental and local development bodies when they were first outlined earlier this year.

Davey said it was now “down to investors” to come forward and ensure the Scottish islands shared in renewable technology and UK-wide green growth.

Responding to Mr Davey’s announcement, industry body Scottish Renewables said it was an “important step forward” after years of campaigning by the renewable energy sector and the islands’ councils.

Chief executive Niall Stuart of the industry body Scottish Renewables said:

“While the move does not reduce the cost of connecting to the grid for projects in the Scottish islands, which we understand to be six or seven times higher than charges on the mainland, it does at least help new onshore wind developers mitigate against these high costs. We will now be working with our members to ensure that the proposed support is enough to make projects on the islands economical and for investments to go ahead.”

 

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