Unfair energy export charges prompts study 4/2/13
Consultants are to be appointed to examine the renewable energy potential of the
islands and to look at the problems of high transmission charges for the Western
Isles.
A joint group between the UK and Scottish Governments said it is hiring the experts
in a bid to resolve the issue of expensive prices to export renewable energy from
island windfarms and wave scheme to the mainland.
The consultants are to review and analyse the business case, economics and cost effectiveness
to consumers across the UK of deployment of renewables on the islands.
This follows widespread concern that Scotland’s islands face higher transmission
charges for renewable projects than anywhere else in the country.
Energy firms which create electricity from island wind or marine generators will
have to fork out massively more to reach the mainland markets. Windfarms near Glasgow
or London will face ineligible costs.
The potential charges means that , given a suggest rate of of £77 per KW, the 40MW
wave farm planned by Aquamarine on the west side of Lewis faces would have to pay
over £3.5 million annually.
However, a similar scheme in southern England would pay just £40,000 a year.
The Intergovernmental Scottish Islands Renewables Steering Group was established
last year and is chaired by the Department of Energy and Climate Change, and includes
the Scottish Government, Highlands and Islands Enterprise, the National Grid, Scottish
Hydro Electric Transmission Plc, Ofgem and the relevant island councils.
The group announced the immanent appointment of the consultants, who will undertake
a study on the commercial viability of renewable projects in the islands and their
potential contribution to the economy, the barriers to their development, and options
for tackling the barriers and report back later this spring.
Energy Minister Fergus Ewing said: “We know that the islands are the jewel in Scotland’s
renewable energy crown, and I am delighted at the work of the Intergovernmental Scottish
Islands Renewables Steering Charging Group, which is an excellent example of Governments
and stakeholders working together to find a solution to the problem of transmission
charges in the Western Isles.
“The planned appointment of consultants to look at the extent of the renewable energy
potential we know is present in the Islands, the barriers in place and how we overcome
them, is an important step forward.
“This will group is a tangible and positive demonstration of the good working relationships
between national and local governments, and a reaffirmation of our commitment to
do our best for the islands, working towards our joint ambitions for the future development
of renewable energy.”
Edward Davey, UK Energy Minister said: “The Scottish Islands are blessed with tremendous
tidal, wind and wave renewable resources and we should look to fully utilise this
huge potential where we can. I am determined to work closely and constructively with
the Scottish Government and other key partners in this important area of work.
“The appointment of consultants will help drive forward work to look at the commercial
viability of renewable projects on the Scottish Islands and the overall value for
money these projects provide for the UK.”