Weekly Intelligence Brief
OpenHydro & SSE Renewables win licence to develop tidal farm off Scottish coast
16 March 2010
Irish tidal energy company OpenHydro and energy utility partner, SSE Renewables (SSE), have today been awarded exclusive rights to develop a 200MW tidal energy farm in the Pentland Firth off the northern coast of Scotland.
The award was made by The Crown Estate in the UK, as part of a major announcement of the world’s first commercial wave and tidal energy leasing programme.
The Cantick Head site awarded to the OpenHydro and SSE joint venture lies within the Crown Estate’s Pentland Firth and Orkney Waters Strategic Area, considered to be one of the world’s largest single tidal sites. Securing the site is a major first step in delivering large scale tidal energy to the UK; with this one project having the potential to provide 200MW or enough energy to power over 130,000 homes.
OpenHydro and SSE Renewables, which is responsible for the development and construction of SSE’s renewable energy portfolio and which is a sister business of Ireland’s largest independent and greener energy utility Airtricity, have formed a joint venture company, Cantick Head Tidal Development Ltd. The joint venture company will now be responsible for the development of the site. Over the next few years, the partners will be working closely with statutory bodies, local communities and other stakeholders to complete the required surveys prior to bringing forward an application to deploy the tidal turbines.
Commenting on today's announcement, James Ives, chief executive of OpenHydro, said: "Today's development marks a major step forward for both OpenHydro and SSE Renewables and the marine renewable industry in general. I have no doubt that this decision will provide a major first step in delivering tidal energy at utility scale onto the UK national grid. This development will also generate many further benefits for the local economy, including employment and valuable inward investment. We are very excited about further developing our presence in Scotland which will build on OpenHydro's important research work that has been ongoing at the European Marine Energy Centre (EMEC)since 2006."
Speaking at a press conference in Edinburgh, attended by First Minister of Scotland, Alex Salmond MSP, Roger Bright CB, chief executive of the Crown Estate said: "I am delighted to announce that OpenHydro and its partner SSE, has been awarded the Cantick Head site to develop 200MW of tidal energy power in Pentland Firth and Orkney Waters, the world’s first commercial wave and tidal leasing round.
The 1.2GW of installed capacity proposed by the wave and tidal energy developers for 2020, shows the world that marine energy can produce meaningful amounts of electricity and offers a real alternative to conventional power production. The long term prospects for this growing industry are exceptionally bright, with vast amounts of untapped energy in the seas all around the UK. It will create new businesses and jobs as well as attracting inward investment."
Paul Dowling, Chief Executive Officer of SSE Renewables, said: "SSE Renewables is delighted that our joint venture with OpenHydro has been awarded the exclusive rights to develop the Cantick Head site. As the leading generator of renewable energy in the UK, SSE is committed to building on our existing portfolio to develop viable tidal sites using industry-leading marine technologies."
"We believe our partnership with OpenHydro will not only deliver a significant contribution to the renewable energy mix but will also enhance Scotland and the UK’s position as world leaders in marine energy. We look forward to working closely with The Crown Estate, statutory bodies and local communities to develop the site."
