On the brightside
The UK took a step closer to bringing forward large-scale investment in energy infrastructure this week with Dong Energy’s confirmation that it will move ahead with plans to construct what will be the world’s largest offshore wind farm in 2018 after an offer of £140/MWh from the UK government. The 660MW wind farm extension project will be developed 19 kilometers off the west coast of the UK, narrowly topping the installed capacity offered by the 630MW London Array project.
Also looking on the brightside is United Utilities (UU) which said this week that it will invest £3.5 million in what will be Europe’s largest floating solar power development. Although considerably smaller in scale than Dong Energy’s triumph UU said the 3MW project is expected to meet a third of the energy needs of the water treatment works and is the second largest in the world. However, UU said that its second floating solar farm is unlikely to go ahead following the government’s subsidy cuts.
A blow to water company investment
UU added that its plans to roll out 100MW of solar capacity might only reach 40MW before the subsidy cuts take affect. And UU is not the only water company with its renewables ambitions left in tatters by the government’s support scheme overhaul.
Affinity Water has for a second time been forced to shelve plans to install solar at its operational sites, following proposed cuts to Government subsidies for renewables. The water company developed a project in 2011 to install 50kW solar across 10 of its pumping stations, but had to scrap plans after external funding was withdrawn due to changes in Government policy. Following the threat of further cuts this year, the firm has once again had to abandon its plans, but expects to invest in solar when “reduced capital costs negate the requirement for subsidies”.
In addition, South West Water (SWW) has warned that the government’s proposed cuts to the Feed-in Tariff (FiT) could put “significant pressure” on its £18 million renewable energy investment plans. The water utility has a target to increase the amount of energy it generates from renewable sources from 6 per cent to 20 per cent by 2020, and its 2015-20 business plan outlines measures to achieve this, such as the development of three new advanced anaerobic digestion plants, and additional wind and hydro generation schemes.