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Crown Estate awards rights on 6GW Scottish offshore wind power

Monday 16 February 2009

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Crown Estate awards rights on 6GW Scottish offshore wind power
One of the two turbines being built for the existing Beatrice offshore wind farm, which is to be extended under the Scottish offshore wind programme

The Crown Estate has today announced that it will be offering "exclusivity agreements" to nine developers to investigate the potential of 10 offshore wind projects in Scottish territorial waters.

The awards follow a tender process and will allow the firms and consortia to carry out further feasibility studies at the sites, thought to have a total wind capacity of 6GW.

But the Estate said today that it will not grant formal leases to develop at the sites until the Scottish Government completes a Strategic Environmental Assessment (SEA) for offshore wind within Scottish territorial waters.

The Scottish government, which launched the SEA at the end of January this year, has committed to complete the assessment within 12 months, and the Estate said that it will formally award leases in 2010 once developers have obtained statutory consents and permissions from the Scottish government.

Rob Hastings, director of the marine estate at The Crown Estate, said: "The award of 10 exclusivity agreements is excellent news for the companies involved, The Crown Estate and Scotland as a whole. We very much look forward to working with the companies of the development of these sites and the realisation of the enormous potential that these sites have to offer."

The Crown Estate said it will be continuing a "comprehensive dialogue" with key stakeholders to ensure that any concerns can be taken into account at an early stage.

Jason Ormiston, chief executive of Scottish Renewables, said: "Today heralds an exciting phase in the progress of the renewable energy industry in Scotland. The combined capacity of these projects will make a massive contribution of Scotland's efforts in tackling climate change, helping to deliver reliable and affordable supplies of electricity to consumers and, very importantly, the Scottish economy."

Beatrice

Today's announcement heralds the first phase of large-scale offshore wind development in Scotland, which so far has only one offshore wind farm - the two-turbine Beatrice demonstration project, which went online in May 2007.

Beatrice itself is part of the 10 wind farm projects announced today, with a consortium of Airtricity and SeaEnergy Renewables granted rights to study the feasibility of an extension of the project, from 10MW to 920MW.

Airtricity is also involved in three other proposals, a 700MW project at Bell Rock, a 378MW proposal off the Mull of Kintyre, and a 680MW project off the isle of Islay.

Scottish and Southern Energy, which owns Airtricity, said today that it also wants to play a "significant role" in The Crown Estate's plans for a third round of offshore wind farm developments off the coast of the UK.

The firm's chief executive Ian Marchant said: "One of the key aims of our acquisition of Airtricity a year ago was to build a major offshore wind farm capability in northern Europe, and this is already being achieved."

Argyll Array


Scottish offshore wind leases

  • 1. Solway Firth - E.ON - 300MW
  • 2. Wigtown Bay - DONG Energy - 280MW
  • 3. Kintyre - Airtricity (part of SSE) - 378MW
  • 4. Islay - Airtricity - 680MW
  • 5. Argyll Array - ScottishPower - 1,500MW
  • 6. Beatrice - Airtricity/SeaEnergy - 920MW
  • 7. Inch Cape - npower/SeaEnergy - 905MW
  • 8. Bell Rock - Airtricity/Fluor - 700MW
  • 9. Neart na Gaoithe - Mainstream - 360MW
  • 10. Forth Array - Fred Olsen - 415MW

Of all 10 sites being considered, the largest is the 1.5GW Argyll Array, proposed for west of Argyll and the island of Tiree.

Following the award of exclusivity rights on the site, developers ScottishPower Renewables said today it will conduct in-depth feasibility assessments and begin an extensive consultation process.

Keith Anderson, director of ScottishPower Renewables, said: "Scotland has the best onshore wind resources in Europe, and now it is taking its first steps towards harnessing its offshore potential, which will play a major role in helping to achieve renewable energy targets."

He added: "Today's announcement is the first step on a long but important journey, and over the next 12 months we will carry out detailed studies of the site and will consult widely with stakeholders to help shape any future scheme."

Three other areas have been earmarked for development as part of The Crown Estate's tender process, including the Solway Firth, Wigtown Bay, and an Array in the Firth of Forth.

npower

Npower renewables, along with SeaEnergy Renewables, has been granted exclusivity on a 905MW proposal for Inch Cape, nearly 16km into the Outer Tay estuary.

Paul Cowling, managing director of npower renewables, described the partnership with SeaEnergy Renewables as "ideal" for the Inch Cape project, citing npower's experience in constructing offshore wind farms in North Wales, and SeaEnergy's experience in deep water wind turbine construction and its expertise from the oil and gas industry.

He added: "Both companies look forward to working together with the Crown Estate and other stakeholders over the coming year to make this project a reality.

"Inch Cape presents an ideal opportunity to take advantage of the natural wind resources off the coast of Scotland to provide clean green electricity while at the same time utilising the local skills and infrastructure that have supported the oil ship building and power industries in the past," he concluded.

Joel Staadecker, chief executive of Aberdeenshire-based SeaEnergy, said: "As one of the few indigenous Scottish offshore development companies, we look forward to working with npower renewables to help meet the Scottish Government's renewable energy targets."

Mainstream

Mainstream Renewable Power, set up last year by Airtricity founder Eddie O'Connor, has been awarded exclusivity rights on a 360MW project in the Outer Forth estuary, 30km north of Torness.

The company said the Neart na Gaoithe offshore wind farm would cost £1.1 billion.

Dr O'Connor said he "applauded" the Crown Estate and the Scottish Government for their "clear vision for renewable energy in Scotland".

He said: "This project will bring much needed economic impetus to the Scottish economy, including local employment and supply chain opportunities, particularly in Fife and the Lothians.

"Neart na Gaoithe is the first step in our vision of an interconnected series of wind-fired power stations in the North Sea providing long term security of energy supply for Europe," he added.

 
 
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