MeyGen tidal energy deal is 'outstanding news' for the far north, says MP Jamie Stone
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The decision to include the world-leading MeyGen tidal energy project in Caithness in a UK government initiative to help the renewables industry is "outstanding news for the far north," according to local MP Jamie Stone.
He said the move is "a turning point for the viability of tidal power" and "could create long-term jobs for people in Caithness and north Sutherland".
He was speaking after it was announced that Simec Atlantis Energy (SAE), which operates the site in the Pentland Firth, is for the first time to be part of the Contract for Difference (CfD) scheme which guarantees the company a fixed price for the electricity produced there.
The decision means MeyGen will be able to significantly increase its output by 28 megawatts – from six at present to 34 megawatts under the next phase of its operation in the Inner Sound, between Stroma and the Caithness coast.
The site has the required consent for 86 megawatts, although it is capable of hosting almost 400 megawatts of power. MeyGen is already the largest project of its kind in the world and the award of the CfD will establish it as the global home of tidal energy, according to the company.
The CfD guarantees a price of £178.54 per megawatt hour for 15 years and will enable SAE to deliver 28 megawatts of what it describes as "clean, home-sourced, predictable power" at its MeyGen site. CfDs help project developers to invest in new renewable energy infrastructure by protecting them from volatile wholesale prices.
The company aims to achieve financial close for the next phase of the development by 2024, with construction beginning around 2025 and the additional turbines operating by 2027. It says the government's decision will result in the construction of many more turbines for the MeyGen site and will create additional employment.
SAE chief executive Graham Reid said:"The significance of this announcement cannot be downplayed. We are going to be delivering the world's first commercial scale tidal array and we now have a clear runway, with future CfD rounds, to deliver the full 400MW of tidal power generation at MeyGen. I can’t thank enough all those who have championed, supported and invested in our business to achieve this milestone. Our absolute focus will be on the delivery of this project."
Caithness, Sutherland and Easter Ross MP Jamie Stone said: "MeyGen's funding success not only represents a turning point for the viability of tidal power, it is also outstanding news for the far north. Growing our tidal capacity in the Pentland Firth could create long-term energy jobs for people living in Caithness and north Sutherland. For as long as the earth continues to turn, the tides will move."
The Liberal Democrat MP added: "I congratulate MeyGen wholeheartedly on its success and I look forward to the project going from strength to strength."
Trudy Morris, chief executive of Caithness Chamber of Commerce, said the inclusion of MeyGen in the latest Contract for Difference is "fantastic news for the area".
"We have long lobbied UK government for a dedicated tidal stream scheme within the CfD funding mechanism as tidal developers are required to compete alongside more mature industries such as offshore wind," she said. "This announcement is a real turning point and will allow MeyGen to move forward with its next phase of development but more must be done to develop this sector if we are to exploit the rich resource that is our natural environment."
Caithness, Sutherland and Ross SNP MSP Maree Todd said: "It’s always positive to see projects in my constituency benefit from substantial investment. We know that tidal energy will play a significant role in Scotland’s energy mix and the far north is well equipped to lead the way. Huge congratulations to all at MeyGen for securing the contract."
Thirty-five megawatts of tidal power projects in Caithness and Orkney were included in the CfD initiative along with five megawatts in Wales.
Scottish Renewables chief executive Claire Mack described the government's decision as "an incredible milestone" and said it shows tidal energy has a place in the UK’s energy mix.
But she added: "It must be remembered that tidal energy is still in a developmental phase and we would therefore urge the UK government to confirm that its plans for future auction rounds include a dedicated, ring-fenced budget for tidal stream projects and also to commit to reforming the Contracts for Difference mechanism to allow UK supply chain companies to be more competitive."
