Shetlanders plan to reap the wind

The 600 megawatt development would see up to 200 turbines built across the mainland area of the islands and be the biggest project in Shetland since the Sullom Voe oil terminal was built in the 1970s.

The development would cost about 480 million. But it is dependent on an undersea cable to bring power to the mainland which will cost at least another 500 million.

The amount of electricity produced would be 12 times more than needed for Shetland and income from exporting to the national grid would be a new version of oil revenue secured by the islands.

The proposal is being put forward by Viking Wind Farm Ltd, a company set up by Shetland Islands Council. It is envisaged that 50 per cent of the company will eventually be owned by a community body which would take half the profits and potentially be worth more than the millions raked in from Sullom Voe.

It is working in partnership with Scottish and Southern Energy (SSE) which says it would be Europe's most productive wind farm as it would produce electricity at close to its maximum capacity for around half of the time.

The development may not be built until after 2012. But the council says it would bring huge economic benefits and cut carbon dioxide emissions by about two million tonnes a year.

It is preparing an environmental impact study, looking at potential effect on birds, ecology and archaeology as well as its visual effect.

Officials recently held talks with the Royal Society for the Protection of Birds (RSPB) to outline the plans. Drew Ratter, the council's economic development chairman, said: "It is clear we want to build a wind farm, but we want to do so in a spirit of mutual understanding with the key environmental stakeholders."

Lloyd Austin, RSPB Scotland's head of policy, said: "Climate change is a serious environmental issue and renewable energy sources are one part of the solution. Such developments should, however, be well planned and well managed to avoid other environmental impacts.

"This proposal has avoided the most important designated wildlife areas in Shetland and the degree of co-operation with conservation organisations on research and survey into wildlife has established a new level of best practice.

"No-one should prejudge the outcome of an environmental assessment but developing mutual understanding at an early stage offers the best chance of a successful and mutually beneficial outcome, and overcoming any problems that arise."

Shetland's electricity needs peak at 49Mw and the additional power would be exported to the national grid. At present Shetland is not connected to the electricity network on the mainland but is supplied by a 67Mw power station at Lerwick, built in 1953, and by electricity generated at the Sullom Voe oil terminal and the existing Burradale wind farm.

Aaron Price, the council's principal development officer, said the project has been progressed without noticeable opposition: "People are keeping an open mind on it. We are consulting as we go along and everyone is guardedly supportive of it."

He added: "The difference in the project here is that we are looking for the Shetland community having a 50 per stake and reaping the rewards.

"It means business opportunities for people and it could underpin the economy for decades to come. The money will be re-invested in the economy in the way oil funds have in the past."

SSE says the project is innovative and achievable. A spokesman said: "The scale of it is very exciting as is the fact the wind regime is so good. The concept is sound and is capable of planning consent. We are very confident that will prove to be the case." He added: "What is particularly exciting is to capitalise on an outstanding wind resource and achieve potentially huge reductions in emissions."