Wind power subsidies confirmed

The UK Government has unveiled plans to offer incentives to wind farm developers in the Scottish Islands.

Energy secretary Edward Davey announced on Sunday that developers in Orkney, Shetland and the Western Isles will receive a higher subsidy than projects on the UK mainland.

The Government proposes to set the “strike price” at £115 per MW/h for onshore wind developments, “reflecting their unique circumstances and potential”.

The strike price is the level at which a subsidy system kicks in, to ensure producers have a minimum level of income. If the market price for energy drops below the strike price, the subsidy tops up the amount.

The proposals, said Mr Davey, will lead to “a significant amount” of cost-effective generation in the islands — 400 MW of capacity by 2020, generating 1.5 TWh/year of clean, green electricity.