It is widely recognised that there is massive potential for renewable development on the Scottish Islands, but also that there are a number of hurdles that still need to be overcome before this can be achieved.
Last week I attended the Islands Grid Summit in Stornoway, which was organised by the Scottish Government and chaired by the Energy Minister, Fergus Ewing. The summit was attended by a wide range of parties including DECC, Ofgem, developers and Scottish Renewables and I think that a collaborative approach to addressing the various outstanding issues is what is needed to help move things forward.
There was widespread recognition that the challenges being faced by the Islands are not the responsibility of one individual party to resolve, and also that there is not one solution for each of the island groups. Although there are some common issues faced by each of them, it is clear that the islands need to be looked at individually.
We are continuing to work with Government, developers and the regulator to tackle the various administrative and regulatory obstacles being faced. We have recently launched a consultation seeking feedback about the very specific challenges faced by the Orkney Islands and work is also continuing with developers, Government and Ofgem on the particular issues faced on the Western Isles.
Until developers receive more information about transmission charging (under Project TransmiT), the amount of support available and the obligations under the Contract for Difference framework it will be difficult for them to take financial investment decisions about their projects.
The affordability of largescale generation on the islands has been a barrier to development and, recognising this, UK Government introduced an enhanced, Islands strike price. However, it is clear that all parties must now work together to make the necessary policy and regulatory changes to help the islands realise their renewable energy potential.