News / Transmission charges under review
CLARITY over the cost of exporting electricity from Shetland if the Viking Energy wind farm is built could come as early as next April, according to energy regulator Ofgem.
A consultation has been launched to help decide whether to level transmission charges throughout the UK or to maintain the practice of charging remote power generators more than companies that produce electricity close to large population centres.
Viking Energy project manager Aaron Priest said that the most important financial issue facing the company’s business plan is the cost of transmitting power down the proposed subsea interconnector cable.
Mr Priest said they were looking for a “clear, affordable and fair” system for charging power companies in the future, adding that he hoped Ofgem would go for the “postage stamp” principle of equal charges for all.
The highly complex charging system is being reviewed as part of the push to increase the amount of renewable energy produced in Britain.
Ofgem say they hope to implement a new system in April 2012, but accept thais is a highly ambitious target.
The Scottish government has set the most ambitious renewable targets in the world with its aim to generate 100 per cent renewable energy from 2020 and is leading the charge for a change in transmission charges.
Speaking on Tuesday as he convened Scotland’s Energy Advisory Board at his official residence, Bute House, first minister Alex Salmond said: “Among our immediate tasks are ensuring that the review of the unfair and outdated transmission charging regime and the wider reform of the electricity market result in nothing short of a transformation in how we power our economy.
“This is essential to delivering the low carbon priorities set out by the Scottish and UK governments and to ensuring we fully grasp the huge opportunities before us.”
Scottish energy minister Fergus Ewing is currently considering the Viking Energy proposal for 127 turbines in Shetland’s central and north mainland that would generate 457 megawatts of power.
If approved it will be one of the largest onshore wind farms in Europe, and will pioneer a new approach to community involvement with the 50 per cent share owned by Shetland Charitable Trust.
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