A consultation has been launched, including proposals to enable remote island wind projects to apply for a Contract for Difference (CfD) in the next competitive auction for less established renewable technologies in the UK. Wind projects on remote islands (such as Western Isles, Orkney and Shetland) have great potential due to the strong winds on the islands and the opportunity to bring employment and benefit local supply chains.
However, they also face higher costs due to their location and transmission requirements, which set them apart from onshore wind projects elsewhere in Great Britain. The government announced up to £557 million for future auctions in its Clean Growth Strategy and intends for these changes to be implemented, so that island wind projects can compete in the next auction, planned for spring 2019. If a sufficient number of projects are successful it should facilitate the construction of new transmission links, which could deliver a range of wider and longer term benefits and cost savings to the renewables industry and to the island economies. More than 750MW of wind projects with planning consent on these islands could be eligible for the next auction.
