Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Developer confident of wind farm go-ahead despite subsidy setback

Renewable news
Renewable news

The backers of a £2billion wind farm planned for the outer Forth Estuary have not been scared off by moves to scrap a subsidy agreement, the project’s developer said yesterday.

The Low Carbon Contracts Company (LCCC), which manages for the contracts for difference (CfDs) for the UK Government, said in late March it would terminate the state subsidy for the Neart na Gaoithe (NNG) wind farm.

But developer Mainstream Renewable Power said it was not taking the setback lying down and insisted funding was still in place for NNG, which was expected to result in £1.1billion of spending in Scotland and create 600 jobs.

UK Government ministers scrambled to avoid blame for the decision, which casts doubt on the viability of other offshore wind projects in Britain.

A deadline of March 26 had been set for Mainstream to achieve financial close for NNG.

Mainstream appeared to have taken a step towards meeting its obligations when a consortium pledged £500million for the projected in January.

But the final investment decision has been repeatedly held up by a judicial review ordered by a wildlife group.

Royal Society for the Protection of Birds challenged the Scottish Government’s decision to grant planning application for NNG and three other wind farms on the basis that they could have serious implications for the protection of wildlife habitats across Scotland.

A conclusion has yet to be reached, even though the court hearing took place a year ago.

Mainstream said yesterday it still did not know when a ruling will be delivered.

But it did say the withdrawal of the subsidy, which was initially granted in February 2015, was not a foregone conclusion and that it was “in arbitration” with the LCCC.

It is thought that while NNG’s backers could technically pull out, they have given no indication they will do so.

UK Energy Minister Andrea Leadsom yesterday told the House of Commons the decision was disappointing, but said it ultimately lay with the LCCC and not the UK Government.

LCCC is a government-owned company which was set up to act as counterparty for CFD subsidy deals.

Ms Leadsom said: “The cancellation was a result of the milestone delivery date not being met. There are ongoing discussions about that and obviously I absolutely recognise the termination of a CFD is very disappointing for all partners.”

LCCC declined to comment.

Niall Stuart, chief executive of Scottish Renewables, said he hoped an agreement could be reached that would allow the continued development of the scheme.

CfD’s guarantee energy producers a ‘strike price’ for every megawatt per hour (MWh) they supply to the grid over a 15-year period.

Recommended for you

More from Energy Voice

Latest Posts