Green Light for Highland Energy Projects

Sep 17 - Herald, The; Glasgow (UK)

UK Energy Minister Malcolm Wicks yesterday pledged that high grid connection costs will not be a barrier to renewable energy projects in the Highlands and Islands, such as windfarms.

Wicks said that the government was prepared to use statutory powers to counter the so-called "tax on geography".

However, within an hour of the minister giving that commitment, Ofgem - the energy regulator - announced that it would delay a decision on whether to approve a new method of paying for losses from the high-voltage electricity network, which is one of the factors that threatened the high connection charges for remote projects.

This all followed the publication yesterday of a Highlands and Islands Enterprise report which found that the cost for renewable energy producers such as windfarms in the area, could cost up to 30 times more than in other parts of Europe.

Particularly hard hit are developments on the Northern and Western Isles which face between two and three times the costs of link-ups on the north mainland.

Speaking at a conference in Thurso on the future of Caithness after Dounreay has been decommissioned, Wicks said his department would not allow valuable renewable projects to be prejudiced by crippling connection costs.

"We will if necessary, and it may be necessary, use the powers we have on the statute books to intervene to make sure these costs are reasonable. It's common sense.

"We've got huge renewable resources in this area and if we simply said that the full economic cost must be paid for, we wouldn't be able to use it. I'm determined that this mustn't be a barrier and as a government, we're prepared to make sensible decisions about that."

Ofgem had been due to publish its final decision on charging for the losses on transmission lines before September, but it has now decided to delay the decision, pending further analysis and consultation.

A final decision will be made next spring.

Originally published by Newsquest Media Group.