News / Davey sets out draft island power subsidy
THE UK government is to announce a special minimum price for renewable energy generated in the Scottish islands on Sunday.
Energy secretary Ed Davey’s announcement at the Liberal Democrat conference in Glasgow will be the most significant for the future development of Shetland’s Viking Energy wind farm.
Media reports suggest Davey will set a draft minimum “strike price” paid for wind or marine power from Shetland, Orkney and the Western Isles at £115 per megawatt hour (MWh).
That figure is £15 more than the £100 minimum set for green energy produced on the UK mainland. `
Davey said in June he would set a special price for the islands to help them take advantage of the stronger winds they experience, which make the Burradale turbines north of Lerwick the most productive in the world.
The special price is necessary to balance the higher cost of transmitting electricity from the most remote parts of the country.
Viking Energy has said the strike price is the most important factor in deciding whether their 103 turbine development in Shetland’s central mainland will be viable.
There have been discussions over the past few years between the UK government, the Scottish government and the island councils to find a way to capture the vast potential of wind, wave and tide in the isles.
The Press Association on Sunday quoted Davey as saying the subsidy will unlock 400MWh of green energy.
“An independent report showed that the specific circumstances of the Scottish islands required a different approach that breaks the mould of the wider UK strike price mechanism, and we are delivering that,” he said.
“This was possible because of a strong partnership between Westminster, Holyrood and the island councils.
“Thanks to consumers across the whole of the United Kingdom, we can offer this special higher strike price, so Britain gets more green energy, so consumers’ bills in Scotland are kept affordable and so the green economy of the islands grows.
“It is now down to investors to come forward and work with us to ensure the Scottish islands share in renewable technology and UK-wide green growth.”
Davey’s announcement comes one the eve of the Our Islands, Our Future conference in Orkney where the island authorities will spell out their demands following next year’s independence referendum, which include greater benefits from renewable energy.
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