REA's comments on the ‘Scottish Islands Renewable Project: Final Report’.

Commenting on the ‘Scottish Islands Renewable Project: Final Report’, published yesterday by DECC [1], REA Chief Executive Gaynor Hartnell said:

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“We welcome the report’s recognition of the economic benefit that renewable energy development brings to the Scottish Islands. This economic benefit occurs wherever renewables are developed, but is particularly attractive where other opportunities are limited, as is the case on these islands.

“It is wrong, in the REA’s opinion, to alter network charging methodologies to specially benefit particular types of generation. Charges should relate to the costs that generators impose on the system and locational signals are important and should not be distorted.

“In very general terms, higher network costs are often compensated by stronger winds, but not so in this case as the connection and transmission costs are exceptionally high. Conversely, lower wind speed projects can be economic, if they are located where network costs are lower. The REA view is that locational signals in transmission and distribution help deliver a desirable geographical diversity of renewables deployment.

“We would however encourage the Scottish Government to consider assisting wind, wave and tidal energy projects located on the islands, through an explicit industrial policy support programme, in order to realise the significant economic benefits of developing this extensive and valuable resource.”