Moray East offshore wind chief says 'outdated' transmission charging arrangements must change
The company behind the Moray East project has welcomed the Prime Minister's pledge to invest £160 million in offshore wind energy around the UK over the next decade – but warned that the "outdated" transmission charging arrangements need to change if the industry is to fulfil its potential.
Boris Johnson this week announced a commitment to generate enough electricity from offshore wind to power every home in the country by 2030, creating around 2000 construction jobs and supporting up to 60,000 more.
Dan Finch, UK managing director of Ocean Winds – which is responsible for delivering the 950MW Moray East offshore wind farm – said: “It is welcome news indeed that the Prime Minister has recognised the significance and importance of offshore wind in delivering low-cost, low-carbon power and its associated economic advantages at this time of global crisis.
“This announcement is a major advance in transition to net-zero.
“We have shovel-ready projects which are ready to go. The rate of their construction is regulated by the CfD [Contracts for Difference] auction process. The next auction is the opportunity to release a range of projects across a spectrum of technologies."
CfD is the UK government’s main mechanism for supporting low-carbon electricity generation.
Mr Finch went on: "A predictable, reliable, transparent timetable to the 2021 auction will bring much need investor confidence and allow projects to advance in today’s uncertain world.
“We can make low-cost, low-carbon electricity not just a reality but the default for new generation. But it is important to understand that the CfD is just one element of public policy.
“The outdated, volatile and uncertain transmission charging arrangements undermine Britain’s natural advantage of geographic diversity and discourage the building of wind farms in the areas where the wind blows most. They must be brought into line with the rest of government policy to ensure that we can build the right infrastructure in the right place at the right time.
“This additional step is important to ensure that the supply chain for projects like Moray West – which is ready to follow on the heels of Moray East – gets the continuity and security of a pipeline of projects needed to sustain their jobs and investment.”
The Moray East development – about 14 miles off the east coast of Caithness – will have 100 turbines and will generate enough power for some 950,000 homes.
Caithness, Sutherland and Easter Ross MP Jamie Stone has said his constituency must be given the chance to benefit from Mr Johnson's pledge.
“One thing the far north is not short of is wind and coastlines," Mr Stone said. "I believe that there is space for a number of developments, similar to the Beatrice wind farm off the east coast of Caithness.
"For this reason, a portion of the Prime Minister’s £160 million must be invested in the Highlands."
Mr Johnson said the £160 million would be made available to upgrade ports and infrastructure in areas such as Teesside and Humber in northern England, as well as in Scotland and Wales, to "hugely increase" offshore wind capacity.
"Our seas hold immense potential to power our homes and communities with low-cost green energy and we are already leading the way in harnessing its strengths," Mr Johnson said.
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