Letters / In response to Jack Barclay
Further to Jack Barclay’s letter A socially responsible project (SN, 15/1013) I would like to clarify a few points on behalf of Sustainable Shetland to avoid confusion.
The Judicial Review into the ministers’ decision to grant consent for the Viking Energy wind farm was instigated, undertaken and paid for by Sustainable Shetland, a group with a membership approaching 900.
This is small in relation to the combined might of the Scottish Government and the Viking Energy Partnership but large in terms of a Shetland community group. Our members have contributed generously towards the costs of our legal action; we have no rich benefactor.
During the case Sustainable Shetland highlighted concerns raised by thousands of individuals: 3,473 people signed the Sustainable Shetland petition against the Viking Energy wind farm that was presented to Shetland Island’s Council in 2009. 2,772 individuals wrote to the Energy Consents Unit to object to the project (1,115 people wrote in support of the project).
The financial viability of the project is by no means proven. There has been no clear statement from Viking Energy or from the Shetland Charitable Trust on what the expected returns will be since transmission charges were proposed in August, but
“under the proposals, islands would be expected to pay more to cover the extra cost of building subsea interconnector cables to export their electricity. Scottish Renewables chief executive Niall Stuart said the Ofgem charging proposal would not see a single island renewables project being taken forward.” (Charge cuts not enough; SN, 01/08/13).
In May 2009 the cost of the Viking Energy wind farm construction was estimated at about £800 million. As a 45% shareholder in the project Shetland Charitable Trust would need to provide about £360 million of this. In March of this year, charitable trust funds were worth around £220m, with £180 million invested on the world markets and £40 million in the local economy. This would mean that the Charitable Trust would need to borrow hundreds of millions to retain its share in the project.
We would question the wisdom of such a move for a charitable organisation. Sustainable Shetland does not believe this is socially responsible. On the contrary, it is rather like an individual staking twice the value of their house on a project with no guarantee of return. The question of excessive subsidies for wind farms is very much in the spotlight at present as energy bills rise and there is no guarantee that they will be maintained.
By 16 April 2012 Shetland Charitable Trust had invested £3.42 million in the Viking Energy project – and then committed a further £6.3 million. There has never been any public accounting as to how any of this money has been spent. Sustainable Shetland would welcome information on this point.
Frank Hay
Chairman
Sustainable Shetland
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