Red tape threat to green energy targets Bureaucracy will prevent link-

THE drive to harness new, cleaner sources of energy to power Scotland could be hampered because red tape threatens to block them from connecting to the national grid.

The renewables industry believes new arrangements for the grid could leave dozens of wind and hydro power schemes unable to contribute. As a result, the country could fail to meet its targets to increase the use of renewable energy.

Now the SNP plans to raise the issue at both Holyrood and Westminster.

"The government must step in and prevent Scotland's nascent renewables industry from having the rug pulled from beneath its feet, " said the party's energy and environment spokesman, Richard Lochhead MSP. "Many vital projects will simply be killed stone dead. All these issues should be regulated by ministers in Scotland who understand the distinct nature of our renewables industry - an industry that should be allowed to grow without obstacles drawn up by London bureaucrats getting in the way."

The British grid will be taken over by the electricity transmission company, National Grid Transco, on April 1 next year.

Industry leaders warn that rigid new connection arrangements designed for large conventional power stations will be imported from England, penalising the small, widely dispersed power suppliers that are typical in Scotland.

The Scottish Renewables Forum, which represents wind, hydro and biomass companies, estimates that more than 400 megawatts of renewable energy could be prevented from connecting to the grid. This is from projects which already have planning consent and a connection agreement.

"The devil has now emerged from the detail and Scotland's renewables targets are at risk, " said the forum's chief executive, Maf Smith.

To reduce pollution, the Scottish Executive has set a target of increasing the proportion of Scotland's electricity generated by renewable sources from the current 13per cent to 18per cent by 2010 and to 40per cent by 2020.

National Grid Transco insists it will offer connection agreements to schemes that already have them. "But there is a big health warning attached to this statement, " said Smith.

"National Grid's proposals will hold renewable generation back with red tape and stifle new connections in Scotland. If we cannot have a sensible way of managing the grid system then Scotland will see renewable connection frustrated, because an English rule book is being applied lock, stock and barrel to a Scottish problem."

Next April the Scottish electricity grid will be fully integrated with the English and Welsh grid under the British Electricity Trading and Transmission Arrangements (Betta).

Instead of being run by ScottishPower and Scottish and Southern Energy, it will become the responsibility of National Grid Transco.

The grid company, however, has played down the potential problems, stressing that it is committed to accommodating renewable suppliers. "We have been doing a great deal of work in this area, " said a spokesman.

"That includes talking to wind farm developers about new connections, looking at the reinforcements we need to make to our infrastructure and establishing that there are no insurmountable technical problems to balancing supply and demand with even large amounts of intermittent generation on the system."

The spokesman added: "We have an obligation under our transmission licence to make offers to connect to and use the GB transmission system to those parties the Scottish transmission companies tell us have existing connection agreements - whether the generation has been built yet or not."

Operation of the grid is regulated by the government watchdog Ofgem, which is also blamed by the Scottish renewables industry for not doing more to help new wind farms get connected. Ofgem is currently trying to resolve a controversy over extra charges that might be imposed on Scottish renewable generators for transmitting electricity to England.

But the regulator has defended its role by pointing out that access to a British market is essential for the development of renewable electricity in Scotland. "There is significant overcapacity in Scotland. Introducing GB-wide arrangements provides a wider market for smaller and predominantly renewable generators, " said an Ofgem spokesman.

"Scottish generators will not be treated any less favourably than any other generator in Britain. However, it is important that small generators in Scotland continue to provide the transmission system operator with the same services they do today to help ensure security of supply for customers."

One project that could be prevented from plugging into the grid is the Pentland Road wind farm planned for the Isle of Lewis. A company called Farm Energy has been given planning permission by Western Isles Council to build six turbines west of Stornoway, with the aim of generating up to 15 megawatts of electricity.

But according to the company's director, Michael Huntingford, connection to the grid may be delayed because of the different arrangements being introduced by National Grid Transco. "Our concern is that they will be unable to connect us for a number of years, perhaps not until the end of the decade, " he said.

Another wind farm planned for Lewis - the massive 234turbine scheme backed by two power multinationals, Amec and British Energy - has run into fresh opposition this weekend. The Scottish Wildlife Trust, a charity which aims to protect wild animals and plants, has announced it is objecting to the plan because of the damage it will inflict on an internationally important peat bog.

www. scottishrenewables. com www. nationalgrid. com/uk www. ofgem. gov. uk www. swt. org. uk

Copyright 2004 SMG Sunday Newspapers Ltd.
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