Tuesday 9 June 2009

More than 40 bids to exploit 'Saudi Arabia of renewables' off Scotland


Published Date: 09 June 2009
By JOHN ROSS

THE huge economic potential of a renewables powerhouse off the north of Scotland has been underlined with news that 42 applications have been made to develop wave and tidal energy projects.
The Crown Estate yesterday revealed it has received plans from 20 bidders for energy leases in the Pentland Firth, between Caithness and Orkney.These range from 10MW demonstration sites to 200-300MW commercial projects and come from small developers to multinational companies.The Pentland Firth is considered to be one of the best tidal energy hotspots in the world. Earlier this year, the Crown Estate announced it was opening up the seabed for applications for commercial-scale marine energy development. It is working with the Scottish Government and Highlands and Islands Enterprise (HIE) to generate more than 700MW of renewable power from the area by 2020.The Crown Estate said the number of applications showed a real drive to develop a strong marine energy sector in the UK. First Minister Alex Salmond – who has described the Pentland Firth as having the potential to become the "Saudi Arabia of marine power" – said renewable energy will deliver more investment, jobs and opportunities to communities in the area and benefit the whole of Scotland.He said: "Scotland boasts a quarter of Europe's wave and tidal resource, and we are leading the way in developing these technologies through the world's only accredited wave and tidal testing centre, the European Marine Energy Centre in Orkney, and the Scottish Government's £10 million Saltire Prize – one of the biggest international government innovation prizes in history."I am delighted that the Crown Estate has received a total of 42 applications from 20 bidders for wave and tidal energy leases for the Pentland Firth. The Scottish Government will be working to support the development of marine energy, to ensure we capitalise on our rich natural resources and to make Scotland a world leader in renewables."Rob Hastings, director of the marine estate at the Crown Estate, said the agency was delighted to support the growth of the wave and tidal energy industry and aimed to put the UK at the forefront of marine energy generation. However, the Crown Estate warned the success of the bids was heavily dependent on overcoming a number of issues, including grid connection, consenting processes, supply chains and economic support for the projects.Sandy Cumming, chief executive of HIE, said: "The level of developer interest in the Pentland Firth confirms both the potential of these waters and the confidence that companies have in the industry's development."A detailed and confidential evaluation process of the bids will now be carried out by the Crown Estate to identify the best bids.The organisations that have submitted tenders passed a pre-qualification, two-month assessment last year.