Orkney Wind Projects Secure Contracts
20 September 2019. The Orkney Islands host some of the best wind resource in the world and we are delighted to have secured Contracts for Difference (CfD) for our Costa Head and Hesta Head projects. Combined, the projects will contribute nearly 40MW of commercial scale island wind, enough power to supply approximately 23,000 homes each year.
Earlier this week, Ofgem conditionally approved a 220MW transmission link from the Orkney islands. Ofgem’s approval is conditional on a total of 135MW of new wind farm projects on Orkney being awarded a CfD or being financially viable by December 2021. The new electricity link will enable new wind farms and tidal arrays on Orkney to send electricity to the mainland. The new interconnector is a key strategic priority of the Orkney Islands Council and these new wind farms are critical to realising that goal.
Both Hesta Head and Costa Head secured planning consent in April 2019. Once operational, the wind farms will provide significant economic benefit to the islands including a community benefit of £5,000 per MW installed and an additional £1,000 per MW installed towards fuel poverty.
The projects have been developed by Hoolan Energy, a Scottish-based onshore wind developer owned by Low Carbon.
Commenting on the announcement, Steve Mack, Head of Investments at Low Carbon said: “We have been developing Costa Head and Hesta Head for almost five years and are delighted to secure CfD contracts for both projects. We look forward to the other Orkney projects completing their development thus enabling construction of the interconnector to start as soon as possible. The auction has once again cleared below where industry experts were predicting, and it is appropriate on Climate Action Day that we see a further 6GW of clean, green renewable energy generation being procured in the UK. What is clear from this auction is that it is now completely untenable for the Government to justify its preference for offshore wind as a “less established technology” and we look forward to onshore wind and solar being able to compete in future Contracts for Difference auctions and driving further decarbonisation at even lower cost.”
ENDS
About Low Carbon
Low Carbon is a privately-owned investment company committed to the development and operation of renewable energy power production. Low Carbon invests into both renewable energy developers and projects across a range of renewable energy technologies including solar, wind, waste to energy, energy storage and energy efficiency. Low Carbon has a proven track record in the development, construction, financing and management of renewable energy assets. For UK solar alone, Low Carbon has funded more than 320MW. Low Carbon remains involved in the projects for the long term with a dedicated asset management team that manages assets on balance sheet and for third parties (unlisted and listed).
About Hoolan Energy
Hoolan Energy is an Edinburgh based company specialising in the development of renewable projects in Scotland. Operating since 2015, Hoolan Energy’s experienced team has a strong track record in renewables and are committed to the responsible development of renewable energy power production in Scotland. Hoolan Energy works with local communities to utilise our renewable energy sources to help power Scotland’s energy needs.