Plans for a major offshore wind farm off the north coast of Scotland have been paused, with developers warning that “unfair” electricity transmission charges are making the project unviable.
The 125-turbine West of Orkney wind farm, which had aimed to generate enough power for two million homes by 2029, has halted further investment due to the high cost of connecting to the electricity grid in the north of Scotland.
The news comes just 24-hours after a huge poll by True North Advisors found that only 7% view the current transmission charging system is fair and 65% believe it must be reformed.
West of Orkney wind farm Project Director Stuart McAuley told the BBC that current charging regime disadvantages projects located where wind resources are strongest.
“That is where the highest wind speeds are, and therefore the highest resource for renewable energy,” he said.
“However, with the existing system we are penalised for that.”
He said transmission charges can increase project costs by up to 30%, making it difficult to compete with developments further south.
The project, being developed by a consortium including Corio Generation, TotalEnergies and Renewables Infrastructure Development Group, would connect to the grid via Caithness and Peterhead.
Industry body Scottish Renewables warned the issue affects multiple projects. Chief executive Claire Mack said: “If we look at the economics around that project versus some others, we can see there are many in the same boat."
The UK Government said transmission charges are being considered as part of a wider review of electricity markets, while the Scottish Government has previously described the system as “counter-productive”.