Wind farm charges may fall but island generators still hit hardest
WIND farm developers in Scotland could see cuts of up to 60 per cent in the costs of using the electricity grid under plans announced yesterday by energy regulator Ofgem.
While the industry and politicians welcomed the proposal to reduce transmission charges following a long-running campaign, they warned that the plans would make generation on the Scottish islands up to seven times more expensive than on the mainland.
Under the proposals, the method for charging for transmission using the high voltage grid network would continue to be location-based, with generators paying more if they are sited further from areas of high electricity demand.
But Ofgem said changes could be introduced to reflect the growth of renewable energy, which would take more account of the type of generation and how often the network is being used to transmit power.
The proposed changes would save a large wind farm in the north of Scotland an estimated £1.5 million in costs a year.
Niall Stuart, chief executive of industry body Scottish Renewables, described the proposal as a “step towards fairer charges for projects on the Scottish mainland”. He said: “The changes will make the industry more competitive and allow it to invest more heavily in technologies and the skills of the workforce.”
But Stuart said the review of charges under Ofgem’s “Project TransmiT” would also make renewable electricity generation from wind and marine energy on the Scottish islands up to seven times more expensive than on the mainland.
“This would mean the proposed Stornoway wind farm paying more than £11m annually compared to a £300,000 charge for an equivalent-sized project in south-west England,” he said.
Scottish energy minister Fergus Ewing said he was concerned that the proposals did “not go far enough in delivering a solution on transmission charges for Scotland and in particular our island communities”.
Transmission charges account for 4 per cent of households’ power bills. Ofgem will make a decision in April after hearing industry views. The changes could be in force from 2013.
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Weather for Edinburgh
Thursday 23 February 2012
Today
Light rain
Temperature: 7 C to 14 C
Wind Speed: 26 mph
Wind direction: South west
Tomorrow
Sunny spells
Temperature: 5 C to 10 C
Wind Speed: 29 mph
Wind direction: West
Comments
There are 5 comments to this article
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norfolkboy14
Monday, December 26, 2011 at 01:11 PMAre you disillusioned by rising electricity prices, over dependence on the "green" dream [especially uneconomical and inefficient wind farms] and the destruction of our countryside then please register your objection on http:epetitions.direct.gov.ukpetitions22958 or google"wind petition norfolk" for a quick link. Please get your friends to sign up too. "All that is necessary for the triumph of evil is that good men do nothing." (Edmund Burke)
Greenheatman
Thursday, December 22, 2011 at 03:02 PMI would like to take issue with the Duke of Edinburgh's comment that wind turbines are useless - they are in fact worse than useless because more CO2 is emitted to provide spinning reserve and rapid response backup than if there were none of then at all The cunning plan that we simply try to slow down the rate at which we burn the planet's dwindling reserves of coal is pathetic and short-sighted. Paying ROCs on third rate intermittent electricity is stiffling innovation - What do we need? Continuous renewable electricity NOW!
Hibby
Wednesday, December 21, 2011 at 08:45 AMAbsolutely right #1. And when the landowners and the energy companies have made all their millions and the landscape has been despoiled, the next generation will look back on this folly and ask how our leaders could have been so foolish as to take us down the road of this wind scam. It wid mak ye greet!
Hibby
Wednesday, December 21, 2011 at 08:45 AMAbsolutely right #1. And when the landowners and the energy companies have made all their millions and the landscape has been despoiled, the next generation will look back on this folly and ask how our leaders could have been so foolish as to take us down the road of this wind scam. It wid mak ye greet!
nabodican
Wednesday, December 21, 2011 at 08:14 AMThis is a disgrace, once again OFGEM are bowing to the wishes of the wind industry and effectively giving them license to carry on with the destruction of the Scottish landscape in order to fill their pockets with our cash.
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