Sunshine and waves bring double boost for Scotland's renewables

SCOTLAND'S renewables sector has marked two further breakthroughs following the launch of a large-scale solar deal in the Borders and confirmation of a major investment in a Highlands wave energy business.

Global power and infrastructure group Alstom has taken a 40 per cent stake in AWS Ocean Energy of Inverness, paving the way for its workforce to double to 30. The agreement, welcomed last night by First Minister Alex Salmond, marks the first investment in wave energy by Alstom.

London-based ISIS solar has raised 2 million to install solar equipment at rural businesses within the Borders Machinery Ring, a co-operative of farmers and contractors with more than 850 members. About 20 applicants will benefit initially, but ISIS expects this to exceed 100 within weeks, and is already looking to expand the offer elsewhere in Scotland.

"There is further funding that we are certain will be deployed," ISIS founder Lawrence Buckley said.

ISIS secured the 2m from Downing Corporate Finance, and will use it to install solar equipment free of charge at participating businesses. It then collects the "feed-in" subsidy from the government, and is also able to sell on any excess electricity produced at a particular site.

Businesses in turn see their electricity bills fall by an average of about two-thirds as they are able to produce the majority of their power requirements. Though ISIS has offered this deal on a residential level since its formation in May 2010, the agreement with Borders Machinery marks the first large-scale business scheme to be launched by the company.

The announcement comes within weeks of the UK government's decision to significantly reduce the feed-in tariff for larger solar installations of 50kW or more. This does not affect ISIS, whose arrays are on a smaller scale.

The investment in AWS Ocean Energy has not been disclosed, but was described by a spokesman as a "multi-million pound" deal. Alstom becomes a shareholder alongside Shell Technology Ventures Fund 1 and Scottish Investment Bank, the private sector investment arm of Scottish Enterprise.

"Alstom's investment is a significant boost for AWS Ocean Energy and Scotland's wave energy sector as a whole," said Simon Grey, chief executive of AWS. "Alstom's decision to invest in our company, as well as the support of the Scottish Government, are endorsements of what we have achieved so far and a major source of motivation."

The company, a pioneer in Scotland's wave energy sector, is working to advance its AWS-III floating system which is capable of producing up to 2.5MW of energy from the rising and falling motion of waves.

A scaled-down prototype of the AWS-III was trialled last year at Loch Ness, with a full-sized prototype due to be tested in Scottish waters next year.