The government has been urged to extend the accreditation deadline for floating wind farms to receive subsidies through the Renewables Obligation (RO) scheme.
Renewable UK says failure to grant an extension could bring an end to two projects currently under development, jeopardising the UK’s leading position in a market which is expected to be worth billions globally.
The RO closed to onshore wind and solar during 2016 and all other technologies in March 2017. However, there are a number of grace periods which allow projects to receive accreditation after the main closure dates in certain circumstances, including one specifically for floating wind farms.
Floating wind farms must begin generating power before October 2018 if they are to receive subsidies. The entire project does not have to be completed but at least one turbine must be fully operational.
There are currently three projects under development and seeking to secure subsidies through the RO – Forthwind (up to 60MW), Dounreay Tri (10MW) and Kincardine (50MW).
Kincardine is expected to meet the current deadline but according to Renewable UK it may be missed by the other two due to delays beyond the control of the developers. The trade association has therefore called for the deadline to be extended.
Renewable UK deputy chief executive Maf Smith, said: “The UK is leading the world in the development of innovative floating wind farms. Building massive new infrastructure projects like these brings huge economic benefits to Scotland and to the UK as a whole.”
“We need a swift, positive decision from the UK government on support for these projects, so that we can secure the lead in a global export market worth billions,” he added. “All that’s needed to make this happen is a simple, minor change, extending the accreditation deadline for support – just for these particular projects – from October 2018 to April 2020.
“Any nation keen to develop a forward-looking industrial strategy would not wish to forego such an opportunity”.
A spokesman for the Department for Business, Energy and Industrial Strategy (BEIS) responded that the government does not intend to amend secondary legislation to extend the length of the grace period.
He continued: “The UK is a global leader in renewables, including offshore wind with more support available than any other country in the world, and as part of our industrial strategy we want to build on our strength and expertise in clean growth.
“Floating wind projects are eligible to compete in the next Contracts for Difference auction which incentivises developers and the supply chain to innovate in a cost-effective way. As has been shown with cost reductions from the last auction, this will allow the UK to produce more renewable energy at a significantly lower cost for consumers.”