Transmission Network Use of Service (TNUoS) forecasts released by National Grid ESO this week are “catastrophic” for Scotland’s renewables industry, according to trade group Scottish Renewables.
The tariffs, which have been released with a 10-year outlook for the first time, are projected to increase significantly for projects located in the country.
“This is completely at odds with UK and Scottish Government policy, which makes clear that building new renewable generation in Scotland is essential if we are to meet net-zero,” said the trade organisation’s policy director Morag Watson.
“Projects that are already built or in construction cannot respond to these projections, which will only serve to damage investor confidence at a time where that confidence is crucial.
“TNUoS remains enormously destructive to Scotland’s offshore wind industry and is clearly at odds with everything we need to do to reach net zero.”
National Grid and Ofgem maintain that the calculations are provisional, based on formulas that are likely to be updated as part of future market reforms.
TNUoS charges are levied to fund the costs of developing new grid infrastructure, with significant upgrades planned in the years ahead as part of the Holistic Network Design and accelerated Strategic Transmission Investment regime.
An Ofgem spokesperson said the figures are a “useful early indication of the scale of costs Britain is facing as we invest in and transition to net zero”.
“As regulator we continue to work closely with government and the energy sector to ensure this transition takes place as quickly and efficiently as possible,” they added.
“As a result, projections like this will continue to evolve and do not necessarily reflect amounts customers and generators will pay in years to come.
“We also recognise that the charging methodology needs reform to keep pace with rapidly accelerating levels of renewables on the system and substantial network investment.
“We are working on a number of reforms which are aiming to create a more robust methodology which better reflects the way the transmission system is planned, built and used.”