Wind

Wind power is currently one of the most developed, cost-effective and scaleable renewable electricity technologies, with the UK having the largest wind resource in Europe.  For these reasons wind power is expected to be the key technology for the decarbonisation of the power sector.

Onshore wind is a well-established renewable technology.  SSE currently owns 740MW of onshore wind capacity in the UK and Ireland, and has 695MW in construction, including 350MW at our Clyde wind farm in southern Scotland, which is expected to cost £500million when it is due to be commissioned in 2012.  By 2020, SSE aims to have over 3GW of onshore wind in operation.

Offshore wind, although more expensive than onshore wind is attractive due to the strong and consistent wind speeds found out at sea, mitigating issues with intermittency.  In 2009 the UK became the leader in offshore wind capacity, a lead expected to increase.  SSE is looking to be a market leader in this sector, beginning with the construction of Greater Gabbard, a joint venture with RWE nPower, which at over 500MW will is expected to be the largest offshore wind farm in the World when commissioned in 2012.

Onshore wind currently receives financial support of 1 Renewable Obligation Certificate (ROC) per MWh produced under the Renewables Obligation (RO) or 4.5p-34.5p per MWh produced under the feed-in tariff, if the installation's capacity is under 5MW and built on or after the 15th July 2009.  Offshore wind currently receives financial support of 2 Renewable Obligation Certificate (ROC) per MWh produced under the Renewables Obligation (RO) due to being a burgeoning technology with a developing supply chain.  The Government's proposed Electricity Market Reform is due to replace the support mechanism under the RO with a new low carbon generation support mechanism for new build above 5MW, but support mechanisms for previous investments will be grandfathered to ensure investor confidence.