Grid failings a block on renewables development

Scotland's renewables industry has warned that the national grid will be unable to support the growth of the wave and tidal energy sector without substantial reform.

World-leading technology is now emerging in Scotland, but the potential to create a commercial industry of scale is being jeopardised by poor grid connections and high charges, it was claimed yesterday.

Gareth Davies, chairman of Scottish Renewables' marine work group, told the Scottish Renewables conference in Inverness that this is holding up investment.

"Scotland clearly leads the world in the development of wave and tidal technologies," he said, noting that it had leasing agreements for over 1600MW by 2020, just under a quarter of peak electrical demand across Scotland and far exceeding the ambitions of any other country anywhere in the world.

All these developments are focused around the north and west coasts of Scotland, he said. But there were issues to be resolved to ensure they fulfilled their potential, not least grid connections. "These areas presently lack the necessary grid infrastructure to export electricity and also face the most expensive transmission charges anywhere in the UK, if not Europe," he said.

Davies' comments echoed those of Martin McAdam, chief executive of wave energy firm Aquamarine Power who warned on Wednesday that the lack of a grid infrastructure was an obstacle to growth.

Davies said: "The cancellation of the proposed link to the Western Isles last week, following an earlier connection withdrawal for Orkney, clearly shows that the high charges currently being sought are untenable. This situation is holding up investment in grid connections to our islands, which will in turn hold up the development of all forms of renewables in these areas blessed with huge wind, wave and tidal resources."

The author of the Driving the Low Carbon Economy policy paper, Johanna Yates, said: "Scottish Renewables are pleased that Ofgem is reviewing this whole area, and hope that their review will result in certainty for all parties that connections will be delivered, and delivered at an affordable price.

"Both of these outcomes are absolutely essential if Scotland's marine energy sector is to meet its potential for the future and build a commercial scale industry that contributes to our energy needs, drives forward economic growth and creates significant employment locally and around the country."

Yates, marine policy manager for Scottish Renewables, added: "No change would result in a real missed opportunity for communities across the Highlands and Islands of Scotland, for the Scottish economy, and for action to tackle climate change."

More than 300 businesses from around Europe are attending the biggest ever wave and tidal event in Scotland, which is being supported by Highlands and Islands Enterprise, to look at the challenges facing the sector over the next 40 years.