Special subsidy to encourage giant windfarms 28/6/13
A special subsidy for island windfarms has been promised by the Westminster Government.
A guaranteed minimum tariff, known as strike prices, will be put in place specifically
to encourage developers building renewable energy schemes in the islands.
Generators will be paid the loss between the market price and the proposed Scottish
islands strike price which aims to underwrite the higher cost of exporting electricity
great distances to mainland consumers.
The actual strike prices up to 2019 will be known in December. If set too low developers
may abandon plans for large scale energy scheme in the islands.
However, there is no guarantee any large renewable scheme will be built in the Western
Isles within that five year period as the cable link to the mainland markets has
been delayed.
MSP Alasdair Allan said: “The First Minister, Fergus Ewing, Angus MacNeil and I,
and Comhairle nan Eilean Siar have all been pressing very hard for progress on the
interconnector and fairer treatment of Scotland’s island communities when it comes
to renewables.
He said it was “very positive” that the Westminster Government accepted the need
for higher support for renewables in island areas.
He added: “Now, we need to keep up the pressure to ensure that the interconnector
gets built and facilitates the renewables industry that the islands deserve.”
SNP MP Angus MacNeil said: “This is a significant victory and a huge boost to residents
of the Western Isles and islands across Scotland. Energy from the islands is increasingly
important to the GB energy system given Ofgem’s warnings about tightening margins
between supply and demand.
“With community support, island renewables will bring much needed jobs and investment
to the islands and ensure that we share in the full economic benefits of Scotland’s
ambitious renewable energy targets.”
Comhairle leader Angus Campbell said it brought
the “potential of a renewable industry and all the new economic activity and benefits
that will entail a step closer.”
He added: "Although the detail has to be worked out, I am confident that the distinct
characteristics of islands projects and the massive contribution that the Scottish
Islands and the Outer Hebrides, in particular, can make to national energy targets
will be recognised through the new support regime.”
Rhoda Grant MSP Welcomes Renewable Energy Move by UK Government
Shadow Energy Minister, Rhoda Grant said: “This is welcome news for our islands communities.
“The potential for renewable energy development on Scotland’s Islands is huge as
they have large percentages of both the wind, wave and tidal energy resources.”
“We need to get projects on the Islands moving and this subsidy will help kick start
this.”
“I am looking forward to seeing further detail, however I am cautiously optimistic.”
“The move sends a positive message to potential investors, renewables developers
and should provide the reassurance required which will enable the necessary interconnectors
to be built.”