Plans for a ‘Gremista energy park’ being developed
A NEW project which has been called ‘Gremista Energy Park’ is being developed as a “demonstrator” scheme.
While details are unclear at this stage, the Lerwick project is being worked on through the Islands Centre for Net Zero (ICNZ) Shetland programme.
It is separate to the ongoing construction of Zenobe’s battery park opposite Lerwick Power Station, and it is understood not to involve Shetland Aerogenerators, which has plans in place for a second wind turbine plus battery storage near Dales Voe.
ICNZ is described as a “unique interdisciplinary consortium” aimed at accelerating the decarbonisation of Shetland, Orkney and the Outer Hebrides.
The UK Government is investing £16 million in ICNZ through the islands growth deal, with the Scottish Government contributing £500,000.
The Gremista Energy Park project will inform the use of remaining islands deal funding allocated to the development of energy-related projects in Shetland, with more information expected in due course.
It gets a mention within papers for Shetland Islands Council (SIC) meetings next week. The SIC is a member of ICNZ.
The council reports say: “Discussions on the Gremista Energy Park anchor project business case are ongoing, with revised costings received and further work underway on NPV [net present value], community benefit and subsidy control.”
The report adds that additional information requested by the UK and Scottish Governments has been incorporated into an outline business case.
Shetland stands to receive £5 million of islands deal funding for ICNZ activity, with a full business case due to be submitted by 31 January 2027.
It added: “Work is progressing on development of a scheme and seeking expressions of interest for additional projects aligned with ICNZ objectives.”
The three island councils are partners of ICNZ, with the European Marine Energy Centre, Heriot-Watt University, Community Energy Scotland and Aquatera also involved.
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The ICNZ website said the island councils will “work on transition projects in Shetland, Orkney and the Outer Hebrides which will be developed out of the ICNZ processes”.
“As successful transition projects are carried out the team will work with a range of partners to replicate and scale up the solutions,” it added.
The islands deal website added that “by exploring and trialling solutions to decarbonisation that have replicability and application worldwide, [ICNZ] will accelerate the islands’ journey towards decarbonisation.”
The islands deal will see both the UK and Scottish governments commit £50 million each to support a range of projects in the Northern and Western isles.
Some of other projects in Shetland which could receive islands deal funding are the Knab redevelopment and an ultra-deep port at Dales Voe.
Concern has been expressed in the past however that the islands deal funding is not inflation-proofed.
It is a ten-year programme, with the £100 million set to be divided equally between the three island areas.
Islands deal funding not being inflation-proofed may cause difficulties, meeting hears
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