World-first energy deals for Scotland


The worldÔÇÖs first commercial-scale wave and tidal energy projects are to be built off the Scottish coast, where it is hoped they will power up to 750,000 homes.

Ten schemes capable of generating up to 1.2 gigawatts of electricity are to be built around the Orkney Islands and on the Pentland Firth. Each scheme ranges from 50 megawatts to 200 megawatts.
The project, being billed as the world's first commercial wave and tidal scheme, is a significant step in the UKÔÇÖs efforts to develop wave and tidal stream technology in order to meet climate change targets and reduce the countryÔÇÖs dependence on fossil fuels.
The schemes will cost around £4 billion in total and will require an extra £1 billion of public funds to build new grid connections, harbours and other infrastructure in the surrounding region.
Together, the 10 sites will have the capacity to generate four times the electricity of ScotlandÔÇÖs former nuclear power station at Dounreay in Caithness.
Six sites have been allocated for wave energy developments generating 600 megawatts of power; and four for tidal projects, also generating 600 megawatts.
Bids were received from 20 companies for a total of 42 sites. The power firms E.ON; Scottish and Southern Energy (SSE) Renewables; and Scottish Power Renewables will take on the largest of the 10 schemes.
E.ON has won leases for wave projects in West Orkney South and West Orkney Middle South. Tidal schemes will be developed by SSE Renewables off Westray South and jointly with OpenHydro Site Developments off Cantick Head, both on Orkney. Pelamis Wave Power will manage the Armadale site in the Pentland Firth off the coast of Sutherland.
Wave schemes will be developed by SSE Renewables off Costa Head and also jointly with Aquamarine Power off Brough Head, both on Orkney. Scottish Power Renewables has won the tender for Marwick Head, Orkney.
Marine Current Turbines has won the Brough Ness site on Orkney and Scottish Power Renewables the Pentland Firth off Duncansby in Caithness.
The involvement of the big utility groups is seen as essential to the overall project, since the developers of the technologies need considerable financial backing in order to bring them to the point of commercial viability.
The Scottish government has estimated that renewable energy could create 20,000 jobs over the next 10 years, mainly through offshore wind farms. It has now said that these latest schemes could create several thousand more jobs, depending on the rate of development.
Leading international energy companies continue to be attracted to Scotland, which holds as much as 25 per cent of EuropeÔÇÖs tidal and offshore wind resource and 10 per cent of the continentÔÇÖs potential wave capacity.