A consultation has been launched today over proposals to enable remote island wind
projects to apply for a subsidy under the Contract for Difference (CfD) in the next
competitive auction for less established renewable technologies.
Wind projects on the Western Isles, Orkney and Shetland have great potential due
to the strong winds on the islands and the opportunity to bring employment and benefit
local supply chains.
However, they also face higher costs due to their location and transmission requirements,
which set them apart from onshore wind projects elsewhere in Great Britain.
The UK government announced up to £557 million for future auctions in its clean growth
strategy and intends for these changes to be implemented, so that island wind projects
can compete in the next auction, planned for spring 2019. The consultation will also
seek views on how island communities can benefit from these projects.
If a sufficient number of projects are successful it should facilitate the construction
of new sub sea cables which could deliver a range of wider and longer term benefits
and cost savings to the renewables industry and to the island economies.
UK Energy Minister Richard Harrington said:
“We’ve placed clean growth at the heart of our new industrial strategy. We are cutting
emissions while keeping costs down for consumers, creating high value jobs and growing
We are delivering on our commitment to support remote island wind projects, which
have the potential to benefit local communities.”
UK Government Minister for Scotland Lord Duncan said: “Wind projects in the remote
islands of Scotland have the potential to generate substantial amounts of electricity
and cut emissions, supporting economic growth and delivering lasting benefits for
“Enabling these projects to compete in future auctions will reinforce the UK’s position
as a world leader in renewable generation, as well as providing Scottish jobs in
any projects supported.”