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Support for Scottish windfarms will increase energy bills
Support for Scottish windfarms will increase energy bills

The Herald Scotland

time29-07-2025

  • Business
  • The Herald Scotland

Support for Scottish windfarms will increase energy bills

The offshore floating wind sector will be one of the biggest beneficiaries of reforms to the main scheme the UK Government operates to encourage firms to commit to the upfront investment required. In the latest round of the Contracts for Difference programme floating windfarm developers will be guaranteed £271 per megawatt hour (MWh) for their output regardless of what prices prevail in the market. The value of the revenue guarantee has increased by more than 10% since the latest allocation round was completed last year, when the strike price for floating windfarm output was set at £245/MWh. Mr Miliband is so anxious to ensure that the round is a success that he has also agreed to extend the standard term of CFD awards to 20 years from 15. READ MORE: Just transition fund farce deepens as Scottish firms fight over windfarm scraps The changes were announced weeks after Scottish Renewables said bold action was required from ministers to maintain the momentum behind the development of the emerging floating windfarm sector, which champions reckon can play a crucial role in the net zero drive. While only two floating windfarms have been developed off Scotland to date their performance has reinforced hopes that such schemes could offer big advantages compared with conventional facilities that have foundations on the seabed. Floating windfarms can be deployed in deeper waters allowing them to harness stronger winds that blow more consistently than those nearer to the shore. They could be placed far enough offshore to ease the concern of critics such as Mr Trump who complain about the impact of windfarms on views. Scotland is seen as being well placed to capitalise on the development of floating windfarms because of its geography and its oil and gas industry heritage. Around 90% of the waters off Scotland are deep. Dan Jackson, who is leading work on Cerulean Winds' plans for the Aspen floating windfarm off Aberdeenshire, has noted that wind strengths in the area it is targeting are more than double what they are in southern England. READ MORE: Investors eye Scottish floating windfarm bonanza The hope is that success in the floating market will help compensate for the disappointments that Scotland has suffered to date in terms of the economic impact of renewables activity. While firms have invested heavily in conventional developments on land and offshore, with CFD support, the benefits have gone mainly to companies based outside Scotland. The number of jobs created in Scotland has fallen well short of expectations. A report on the SNP Government's £500m Just Transition Fund released this month found that it helped create just 110 jobs in its first two years. Excitement about the potential value of floating wind activity in Scotland increased after US private equity investors agreed two years ago to provide £300m backing for a plan to turn the Port of Ardersier on the Cromarty Firth into a major low carbon energy support facility. But some people will be concerned that Scotland will benefit disproportionately from the support that will be provided for floating windfarm developments. Lots of firms have shown interest in Scotland. Crown Estate Scotland awarded leases covering acreage on which firms expect to deploy around 25 windfarms in rounds completed in the last three years. Successful applicants included Cerulean, Shell, SSE and ScottishPower. However, firms appear less enthusiastic about the waters off England. In June a licensing round covering acreage off South West England generated a disappointing response. READ MORE: SNP Government green jobs failure seen in English city's success The concern about Scotland's share of floating windfarm funding support will be heightened by the fact that the costs of the technology are much higher than those for established alternatives. In the allocation round that it is expected will be launched next month conventional offshore windfarms will be guaranteed £113/MWh for their output compared with £102/MWh last time. Onshore windfarms will be guaranteed £92/MWh against £89/MWh. Developers will get top up payments if market rates fall below the strike prices guaranteed under the CFD round. If rates rise above the strike price developers will have to pay over the difference. However, Governments have run the CFD scheme for years in the expectation that the amounts paid to developers will far exceed recoveries. Mr Miliband boasted that the budget for the allocation round that was completed last year would be increased by £500m to £1.5bn. The latest data collected by the regulator Ofgem indicates that wholesale prices averaged around £80/MWh in May. If rates remain around that level floating windfarm developers will be in line for big payments under the CFD contracts awarded in the forthcoming round. The costs will be added to the energy bills of householders across the UK irrespective of whether projects in the areas they live in will benefit. READ MORE: As Chevron closes Aberdeen office, what now for North Sea jobs? The proposals for the latest CFD round underline the fall in the price of solar energy schemes, which are more widespread south of the border. The strike price for solar will fall to £75/Mwh from £85/MWh. Scotland could also benefit from the increase in the strike price for larger hydropower schemes, to £168/MWh from £142/MWh. However, Scottish energy giant SSE has provided a reminder that the performance of hydropower and other renewable schemes depends on the weather. This month the energy giant revealed that its hydropower output slumped 40% in the latest quarter amid the sunshine the UK enjoyed. In a trading update issued at SSE's annual general meeting the Perth-based firm welcomed the increase in the length of new CFD contracts. The company also praised the Government's decision to retain a UK-wide electricity pricing system although critics claim this prevents householders in Scotland from benefiting from the abundance of renewable electricity in the country. SSE warned a shift to a system under which prices varied in different parts of the UK would lead to cuts in investment. As chief executive Alistair Phillips Davies retired after 12 years in post, the company made clear at the AGM that it remained keen to invest in renewables generation assets and the network improvements that will be required to make the most of them. However, SSE expects gas-fired power to remain a key part of the energy mix for years. READ MORE: Israeli-owned firm takes control of UK's biggest gas field It continues to cause the SNP Government discomfort by championing plans for a new gas-powered plant at Peterhead with related carbon capture facilities. First minister John Swinney would love to see Scotland secure the jobs the plant would create but is under intense pressure to oppose the development from the greens the [[SNP]] wants to keep onside.

New national park for Scotland 'would cost Galloway £500m' by stopping onshore wind farms
New national park for Scotland 'would cost Galloway £500m' by stopping onshore wind farms

Scotsman

time05-05-2025

  • Business
  • Scotsman

New national park for Scotland 'would cost Galloway £500m' by stopping onshore wind farms

The report by BiGGAR Economics for Scottish Renewables has called into question the economic hit from creating a new national park in Galloway Sign up to our Scotsman Rural News - A weekly of the Hay's Way tour of Scotland emailed direct to you. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Scottish Government plans to create a new national park in Galloway could cost the area more than £500 million by 2035, a new report has warned. A study concluded that if the proposed new Galloway national park was to have a planning regime similar to the country's two existing national parks, 'the region could experience a cumulative loss of around £543 million GVA [gross value added] by 2035'. Advertisement Hide Ad Advertisement Hide Ad Plans to create a national park in Galloway have proved controversial | Getty Images If Scotland's third national park is established there, the report – produced by BiGGAR Economics for Scottish Renewables – said it would 'almost certainly reduce deployment of onshore farms in south-west Scotland by making it more difficult for developers to secure planning permission for developments near the park'. The report said designating a national park in the area could 'affect the deployment of onshore wind in the region', with this in turn having an impact on economic activity in the area. The report said, if the proposed national park in Galloway adopted a similar planning regime to existing parks in the Cairngorms and Loch Lomond & the Trossachs, 'the region could experience a cumulative loss of around £543m GVA by 2035, around 470 fewer jobs/year might be supported at the peak of activity, and the region could miss out on around £64m in community benefit funding'. Advertisement Hide Ad Advertisement Hide Ad It comes as projections from the UK Department for Energy Security and Net Zero indicate Dumfries and Galloway could generate up to 3.2 gigawatts (GW) of energy from onshore wind by 2035 – with projects having the potential to support up to 624 jobs annually at the peak of activity, while community benefit payments to the area could amount to £146m by 2035. Meanwhile, the Scottish Government's onshore wind policy aims to achieve 20GW of capacity by 2030 as part of efforts to boost renewable electricity and move away from fossil fuels. In light of that, Scottish Renewables chief executive Claire Mack said: 'The proposal to designate a new national park in Dumfries and Galloway must be weighed carefully against the significant economic and environmental contributions of renewable energy projects currently in development.' She added: 'Research by BiGGAR Economics shows that blocking onshore wind developments alone could lead to fewer jobs, lower investment, and lost opportunities for communities.' Advertisement Hide Ad Advertisement Hide Ad Ms Mack continued: 'That's just part of the picture – the study didn't include the impact of losing solar, battery storage or transmission projects, which would make the economic hit even worse. 'A national park designation should not come at the cost of clean energy, green jobs, and vital infrastructure. Any decision must consider what local communities stand to lose, not just what they might gain.' Opposition in some quarters to creating a national park in Galloway has been intense. Landowner membership organisation Scottish Land & Estates and the National Farmers Union Scotland last year published results of surveys, which showed those against Galloway receiving national park status were in the majority.

New national park could cost region £500m by 2035, report warns
New national park could cost region £500m by 2035, report warns

STV News

time05-05-2025

  • Business
  • STV News

New national park could cost region £500m by 2035, report warns

Scottish Government plans to create a new national park in Galloway could cost the area more than £500 million by 2035, a new report has warned. A study concluded that if the proposed new Galloway national park is to have a planning regime similar to the country's two existing national parks 'the region could experience a cumulative loss of around £543 million GVA (gross value added) by 2035'. If Scotland's third national park is established there, the report – produced by BiGGAR Economics for Scottish Renewables – said it will 'almost certainly reduce deployment of onshore farms in south-west Scotland by making it more difficult for developers to secure planning permission for developments near the park'. It said designating a national park in the area could 'affect the deployment of onshore wind in the region' with this in turn having an immpact on economic activity in the area. The report added that, if the proposed national park in Galloway adopted a similar planning regime to existing parks in the Cairngorms and Loch Lomond & the Trossachs, 'the region could experience a cumulative loss of around £543 million GVA by 2035, around 470 fewer jobs/year might be supported at the peak of activity, and the region could miss out on around £64 million in community benefit funding'. It comes as projections from the UK Department for Energy Security and Net Zero indicate that Dumfries and Galloway could generate up to 3.2 gigawatts (GW) of energy from onshore wind by 2035 – with projects having the potential to support up to 624 jobs annually at the peak of activity, while community benefit payments to the area could amount to £146 million by 2035. Meanwhile, the Scottish Government's onshore wind policy aims to achieve 20GW of capacity by 2030 as part of efforts to boost renewable electricity and move away from fossil fuels. In light of that, Scottish Renewables chief executive Claire Mack said: 'The proposal to designate a new national park in Dumfries and Galloway must be weighed carefully against the significant economic and environmental contributions of renewable energy projects currently in development.' She added: 'Research by BiGGAR Economics shows that blocking onshore wind developments alone could lead to fewer jobs, lower investment, and lost opportunities for communities.' She added: 'That's just part of the picture – the study didn't include the impact of losing solar, battery storage, or transmission projects, which would make the economic hit even worse. 'A national park designation should not come at the cost of clean energy, green jobs, and vital infrastructure. 'Any decision must consider what local communities stand to lose, not just what they might gain.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country

Seven Glasgow businesses recognised for renewable energy
Seven Glasgow businesses recognised for renewable energy

Glasgow Times

time04-05-2025

  • Business
  • Glasgow Times

Seven Glasgow businesses recognised for renewable energy

Scottish Renewables, the trade body for the industry, launched the sixth edition of its Supply Chain Impact Statement on April 30. This annual showcase highlights the businesses and organisations contributing to Scotland's renewable energy sector, with seven based in the Greater Glasgow area. Read more: New 'invaluable' service for people with secondary breast cancer The statement features 39 organisations, representing more than 9,700 jobs. The Glasgow-based businesses include 1Stopwind, EMR Renewables, BVG Associates, Reamp, RES, Emtec Energy, and Vital Energi. These companies provide a range of services, from blade repair and maintenance for wind turbines to solar and battery storage solutions. Scottish Renewables surveyed more than 370 of its members for their views on the current renewable energy landscape in Scotland. The survey found that 64 per cent of the supply chain are investing in the skills, capabilities, and facilities needed to capitalise on Scotland's clean energy pipeline over the next three to five years. However, 60 per cent do not think the UK and Scottish governments are ensuring the right conditions for Scottish businesses to compete and secure contracts in the industry. Read more: ScotRail staff 'cannot enforce' alcohol ban admits train boss Emma Harrick, director of energy transition and supply chain at Scottish Renewables, said: "This year's edition of the Supply Chain Impact Statement represents more than 9,700 jobs and offers a clear view of how project developers are actively collaborating with and investing in local supply chain partners, from cutting-edge start-ups and SMEs to well-established firms. "It's promising to see that nearly two-thirds of supply chain businesses are preparing to invest in strengthening their clean energy capabilities over the next five years and it's clear that our renewable energy industry isn't just growing - it's becoming the engine of Scotland's future economy, with businesses recognising it as the country's biggest economic opportunity. "However, it is concerning that 60 per cent of the supply chain feel the UK and Scottish governments aren't creating the market conditions that will allow them to effectively compete and win renewable energy contracts. "If we want to unlock the full potential of this industry, that gap must be addressed. "And if we're serious about delivering on our clean power potential and building a world-leading green economy, we need to think bigger than we ever have before. "This means urgently delivering an economic environment that maximises the entrepreneurial spirit of our clean power supply chain." The Supply Chain Impact Statement is supported by document sponsors ORE Catapult, EDF Renewables, Fred. Olsen Renewables, Ocean Winds, Scottish Enterprise, and its document partner, the Clean Energy Cluster.

Building the UK's renewable energy future
Building the UK's renewable energy future

Yahoo

time04-04-2025

  • Business
  • Yahoo

Building the UK's renewable energy future

Ben Alcraft, head of marketing at RenewableUK, shares the latest news about events coming up in 2025. As a leading UK renewable energy trade association, RenewableUK looks to shape the future of renewable energy at its flagship events for 2025. These world-class conferences are designed to accelerate the global transition to renewables, bringing together innovators, decision-makers, and industry leaders to drive sustainable development and explore cutting-edge advancements. Ben Alcraft, head of marketing at RenewableUK (Image: RenewableUK / Steve Pope) From the Global Offshore Wind event in London to the Floating Offshore Wind conference in Aberdeen and beyond, our 2025 programme offers opportunities to engage with every aspect of the renewable energy sector. Returning to Excel London from June 17-18, Global Offshore Wind is the must-attend event for the offshore wind industry. Thousands of delegates, exhibitors and speakers will gather to address the sector's biggest opportunities and challenges. An expanded exhibition featuring cutting-edge technologies from leading manufacturers, developers and suppliers. Valuable insights through a high-level conference programme led by industry experts and policymakers. Networking with key decision-makers, investors and partners. Co-hosted with Scottish Renewables, Floating Offshore Wind 2025 will take place in Aberdeen on November12-13. This event focuses on the transformative potential of floating offshore wind technology, exploring its role in revolutionising the renewable energy sector. Learning from real-world floating wind projects through case studies and expert-led sessions. Connecting with suppliers and service providers at the forefront of floating wind technology. Participating in policy and regulatory discussions shaping the future of this dynamic sector. The 2025 calendar also includes events spotlighting onshore wind, green hydrogen, energy storage and other vital areas of the renewable energy sector. Each event is designed to provide insights through expert-led sessions, networking opportunities and the latest innovations. Whether advancing ports and vessels, uncovering pathways to net zero through emerging technologies, or seizing opportunities in Wales and Northern Ireland, the diverse range of events offers something for every renewable energy professional. RenewableUK's award-winning events team is recognised for delivering exceptional and sustainable experiences. In 2025, the team earned prestigious accolades, including Best Association Events Team and Best Sustainable Conference, underscoring a commitment to excellence and environmental responsibility. Be part of the UK's leading renewable energy events and play a pivotal role in shaping a cleaner, more sustainable energy future. Connect with global leaders, discover transformative innovations and make an impact. Find out more about RenewableUK's 2025 events at This story is also published in Insight Energy magazine, covering the latest news from the UK's energy sector. .

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