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Hebrides  News

Grid charges delay hits island windfarms                 17/12/13

 

Plans to build large wind farms in the Western Isles has been dealt another blow as a proposal to lower energy export charges is delayed.

 

Island-based renewable energy schemes were due to receive relief from the present high fees to export electricity to distant mainland markets.

 

Developers are stalling the construction of big windfarms on the islands until the actual costs of transmitting electricity onto the national grid are known.

 

They seek a cut to the present high fees which financially penalises generators sited further away from the end user.

 

Generators in the North of Scotland fork out £25 per kW compared to a subsidy of £5/kW in Cornwall.

 

Windfarms on the islands would be hit harder under the present charging system.

 

Energy regulator Ofgem aims to reduce the fees - though not as much as island developers hope due to its requirement to claw back the cost of installing a subsea cable across the Minch.  

 

Ofgem has pushed back the final start date for the new grid charging scheme April 2015 at the earliest  due to a rethink after late submissions were received to its consultation.

 

Scotland’s enterprise minister Fergus Ewing said the delay was “unacceptable.”

 

Mr Ewing said “threatens vital investment” into renewable energy schemes.  

 

Keeping the higher transmission charges in place for longer coincides with the UK Government’s decision not to give an adequate subsidy for electricity generated from Western Isles onshore windfarms.

 

There are serious fears that the move may drive developers away from projects in the Outer Hebrides because they will not be financially viable.

 

It may also create a knock-on delay into building the planned £775 million sub-sea cable to export wind farm output from the Western Isles.