The UK government has confirmed that remote islands wind projects will be able to compete in the upcoming Contracts for Difference auction.
Officials said following consultation that regulations will soon be laid before parliament “that will differentiate remote islands wind from other onshore wind projects”.
More than 900MW of projects across Shetland and the Western Isles are expected to be included in the potential bidders for the 2019 auction round.
Government declined to make any changes to transmission access or charging as part of proposed changes to the CfD regime.
It also backed away from a firm decision that might lead to maximum or minimum amounts of islands and/or offshore wind in any future Pot 2 auction.
Officials did acknowledge calls for early clarity on delivery years and indicative CfD budgets, which according to some developers “could improve the relative competitiveness of remote islands wind”.
Further government responses on wider policy impacts, including the question of local benefits, is due imminently.
Antony Skinner, the renewables partner at law firm Ashurst, said while the announcement is good news “there is a risk that such projects may find it difficult to compete against other less established technologies, as that’s been the experience in earlier CfD rounds”.
Image: Scotland’s northern and western islands boast a world-class wind resource (Shetland Aerogenerators)
Islands cleared for CfD bounty
By EBS