Renewables investment in the north of Scotland is under pressure as high transmission charges make projects less competitive than those in the south of England.
The 2GW West of Orkney wind farm has been paused, with developers citing Transmission Network Use of System (TNUoS) costs.
Ocean Winds – one of the UK’s biggest wind developers – says the current charging regime is sending a clear signal not to invest in the north.
Mark Baxter of Ocean Winds told the Press & Journal: “Transmission charging is effectively a locational signal. The further you are away from the demand centres, the more you are charged to use the system.
“Developers like Ocean Winds have done what government asks. And now the market is saying don’t build in the north.”
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At Moray East, one of the firm’s operational developments, charges are forecast to quadruple by 2029.
Calum MacPherson of the Inverness and Cromarty Firth Green Freeport warned: “There’s a real risk of loss of billions and billions of pounds of investment and associated job creation.”
A Department of Energy Security and Net Zero spokesperson said: “We are looking at transmission charges as part of our Reformed National Pricing review, and will update in due course.”
