Like a ‘huge game of Monopoly’: Green councillor not impressed by Amazon wind farm agreement
LOCAL Green councillor Alex Armitage says he is “disgusted at the way Shetland’s renewable resources are being passed around by huge corporations”.
The councillor, who represents the Shetland South ward, was commenting after it was announced that business giant Amazon had signed a power purchase agreement with Statkraft for its planned eight-turbine wind farm on the outskirts of Lerwick.
He said it is as if corporations are “playing a huge game of Monopoly”.
“It’s time we stopped seeing energy as a commodity to be traded and started seeing it as something that is of value to ordinary folk to use to meet their day-to-day needs,” Armitage added.
Amazon said in its announcement earlier in the week that the power purchase agreement is for 36 megawatts (MW) – which is roughly the total generating capacity of Mossy Hill.
The company said the agreement builds on its “long-term investment in renewable energy projects in Scotland and its wider carbon-free energy portfolio across the UK”.
A spokesperson for Statkraft said the electricity from Mossy Hill, which could start flowing in 2030, would still enter the grid.
Amazon would pay a guaranteed price and in return will receive REGO certificates – or Renewable Energy Guarantees of Origin certificates.
These are described as “official electronic certificates that prove electricity was generated from renewable sources like wind, solar, or hydro”.
For Armitage, the Mossy Hill agreement represents another corporate grab on energy generation.
He has long advocated for locally-owned renewable energy developments.
“The transition to renewables offers us a huge opportunity to bring our energy system from corporate control to community control,” he said.
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“We’re currently failing at this miserably as this corporate takeover illustrates.
“In my view, wind farms like this are purely extractive and should be opposed.
“Corporate interests such as Statkraft and Amazon should not have any control over the further development Shetland’s renewable energy industry.
“We have more than enough expertise in our communities and in locally-owned engineering companies to develop community-owned onshore wind energy which will be truly beneficial for our people, our environment and our climate.”
Amazon operates a fulfilment centre in Dunfermline and five delivery stations across Scotland, alongside a research and development centre in Waverley Gate, Edinburgh – with the company employing more than 3,500 people in the country.
Statkraft also confirmed that Amazon is the only “off-taker” for Mossy Hill’s electricity.
It said a number of options exist for routes-to-market, including the government-subsidised Contracts for Difference scheme and power purchase agreements, and “these are kept under active consideration until the best way of delivering the project is determined”.
For Statkraft, it said the agreement with Amazon gives it the certainty to move the Mossy Hill project forward.
Talks have also been ongoing for some time over Mossy Hill and the possibility of an element of potential community ownership, with local community councils involved – but no agreements have been announced.
Tingwall, Whiteness and Weisdale Community Council chairman Andrew Archer said the Amazon announcement was “not entirely surprising” given that Statkraft previously told its members that selling output to one customer was an option.
“This should provide clarity on the project’s finances, though, and we will press Statkraft on community ownership,” he said.
Archer added that “our community takes a pragmatic view” on the development.
“We may not want Mossy Hill to happen,” he added, “but it has consent, so the question is how the community can make the best of a bad situation.”
Energy giant Statkraft has two other wind farms planned in Shetland – both in Yell – but it said it is too early to comment on their route to market.
These are behind Mossy Hill in terms of timeline, with a grid connection for the Yell projects previously given as 2032.
Statkraft recently sold two other projects in Shetland to Norwegian-owned company Kentron Green Nordic AS – ammonia production developments at Scatsta and Tagdale.
When asked if Amazon has further interest in Shetland, a spokesperson said: “Amazon is committed to Scotland for the long term. It continuously evaluates opportunities to support new carbon-free energy projects that best serve its customers and communities, but it has no additional announcements to make at this time.”
Commenting earlier this week, Statkraft’s UK and Ireland country manager Kevin O’Donovan said: “Shetland has a proud history of energy production, and as the country shifts towards more homegrown renewable power, we’re proud to be playing our part in that transition.”
“Our latest project in the Shetland Islands builds on years of investment in renewable energy across the UK,” said John Boumphrey, Amazon UK’s and Ireland country manager.
“From the Shetland Islands to the coasts of England, our renewable energy investments are creating real jobs and powering local communities. Last year we announced our plan to invest £40 billion in the UK by 2027, and the transition to a lower-carbon economy is a part of how we’re putting that commitment to work.”
Amazon also holds power purchase agreements in Scotland with the Moray West offshore wind farm, and the Chirmorie wind farm in South Ayrshire.
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