Scottish renewables developer Muirhall Energy and WWS Renewables have begun construction of a 46MW onshore windfarm which could become Scotland’s first subsidy free project of its type when completed.
Crossdykes windfarm, located in Dumfries and Galloway, is believed to be the first subsidy free development to be project-financed, with merchant bankers Close Brothers Leasing funding the scheme and turbines supplied by Nordex.
Chris Walker, managing director of Muirhall Energy, said having access to the contracts for difference (CfD) scheme, which was closed to onshore wind projects, would encourage the building of more “challenging consented sites”.
He added: “We are now very much focused on working to our tight construction timeline and progressing a number of the other projects in our portfolio which we believe can be made to work on a similar model.
“With more than 300MW to begin construction over the next three years, this an exciting time for Muirhall Energy.
“However, access to the contracts for difference or some other support mechanism would make a huge difference to the economics of the sector, encouraging the build-out of some of the more challenging consented sites, therefore ensuring onshore wind makes the biggest possible contribution to meeting our net zero climate change targets whilst keeping bills down for consumers.”
Muirhall added that it has offered the local community the chance to buy up to 10 per cent of the project via a community share offer, with local groups currently assessing how best to invest in the windfarm.
Responding to the news RenewableUK’s head of policy and regulation, Rebecca Williams, said: “It’s exciting to see work getting underway on what will be one of the UK’s first subsidy-free onshore wind farms, with all the economic benefits that brings to local construction companies as well as consumers.
“Several other such projects are in the pipeline, but we need more volume if we’re to maximise the benefits of the UK’s cheapest power source and reach net zero emissions at the lowest cost.
“We need to see government positively support the wider deployment of onshore wind: top of the list is allowing new projects to compete for government-backed contracts to generate power.
“We also need to see measures to encourage developers to replace older wind farms with newer turbines, as it’s vital that we maintain our current capacity. So the time has come for new ministers to set out a plan for onshore wind.”
Other UK subsidy free UK onshore wind projects include:
- Craiggore (25MW), County Londonderry, Northern Ireland (RES sold this to ERG), consented, construction due to begin Q4 2019, operational in 2021.
- Douglas West (46.8MW), South Lanarkshire, Scotland, consented, construction due to start this year for completion in July 2021 (Greencoat Wind UK).
- Glen Kyllachy (41MW) Highland, Scotland, consented, under construction (Innogy Renewables)
- Pines Burn (36MW) Scottish Borders, consented, construction due to start this year (Energiekontor)
- Withernwick II Extension (8.2MW) Cowden, East Yorkshire, under construction since last year (Energiekontor)