Developers shocked as Scottish government discards offshore wind projects

First we heard was when the announcement came out, says E.ON

By Will Nichols

18 Mar 2011

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Comments: 4

The Scottish government has abandoned plans for two offshore wind farms identified by the Crown Estate as part of its Scottish Territorial Waters leasing round.

E.ON's 300MW project in the Solway Firth and DONG Energy's 280MW Wigtown Bay proposals were both deemed unsuitable by the government's new offshore wind plan, published today.

Both were part of the 10 areas originally earmarked for wind power and awarded to developers in February 2009 by the Crown Estate. However, a Strategic Environmental Assessment undertaken by the Scottish Government found that both proposals were considered to have problems with public acceptability, environmental and visual impact.

"In addition, socio-economic assessment suggests that there is little or no potential for regional economic benefit, and indeed that there is a possibility of adverse economic impacts," the report adds.

"As a result, the Scottish ministers have decided that the Solway Firth and Wigtown Bay sites are unsuitable for the development of offshore wind and should not be progressed as part of this Sectoral Marine Plan."

An E.ON spokeswoman told BusinessGreen that the company was baffled by the move.

"The first we heard was when it came out today," she said. "We're waiting to speak to the Scottish government to see if we can progress the project. We're obviously disappointed. We think it's a good site, but we won't know the next steps until we speak to the Scottish government."

She added that the company was hoping to discuss the matter with the Scottish government late on Friday afternoon.

A spokesman for DONG Energy said: "DONG Energy will take the conclusions of the SEA and Plan for Offshore Wind development in Scottish Territorial Waters into consideration for Wigtown Bay and when looking at any other future opportunities in Scottish Territorial Waters."

The Scottish government denied the projects had been totally discounted and insisted that developers were still free to submit licence applications.

"This is neither the starting pistol nor the full stop, merely a snapshot of where we are now," a spokewoman told BusinessGreen.

"The decision to pursue the development of sites is still a commercial option. Developers can still submit them for licensing, but today's publication should give an indication of how likely it is [to be approved]," she added. "But it's possible they could be developed in 10 years' time, for example."

As part of the Blue Seas – Green Energy plan, ministers gave the green light to six of the 10 original projects, which it said could be producing 5GW of electricity by 2020, and identified a further 25 areas for further development between 2020 and 2030.

Scottish and Southern Energy (SSE) had already pulled two of its projects out of the running – the Kintyre project was cancelled over insufficient wind and Bell Rock was withdrawn last year over possible radar impacts.

Fred Olsen also abandoned its 450MW Forth Array wind farm project in November to concentrate on growing its onshore portfolio.

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