Council welcomes latest Crown Estate announcement

Councillor Sandy Park, Convener of The Highland Council and Chairman of the Caithness and North Sutherland Regeneration Programme Advisory Board, has welcomed The Crown Estate announced today (Wednesday) that it is inviting expressions of interest for a tidal energy project in the Inner Sound, which lies between Caithness on the Scottish mainland and the island of Stroma.

As one of the most energetic tidal areas in the Pentland Firth, the Inner Sound has potential for a significant commercial tidal energy project, and could increase the potential capacity in the Pentland Firth and Orkney waters to more than 1,200 MW.

Councillor Park said: “This is further great news for the area, coming as it does so quickly after the award of the first round of marine and tidal energy leases in the Pentland Firth.   The Inner Sound waters have great potential for energy generation and this can only help to regenerate the economy of Caithness and North Sutherland.  We have promised to play our part in maximising the benefits to the local economy and to local communities.”

Successful bidders for the first competitive wave and tidal leasing round in the Pentland Firth and Orkney waters were announced on 16 March in Wick, Kirkwall and Edinburgh.  During the leasing round process, The Crown Estate received bids for development in the Inner Sound.  The preferred bidder withdrew at a late stage in the process.  Given the Inner Sound’s high potential for renewable electricity generation, and the fact that it was one of the most contested areas in the leasing round, The Crown Estate expects that other parties will be interested in the area.  It has therefore decided to re-tender the Inner Sound.  The Crown Estate is particularly keen to receive expressions of interest in a single commercial project of 200 MW or more installed capacity, to be constructed and operating by 2020.

Should a developer be successful in the re-tendering process and secure an agreement for lease, it would be expected to develop the site and enter the statutory consenting process.  The Pentland Firth and Orkney waters enabling actions fund, which comprises developers’ option fees and match funding from The Crown Estate, would also increase. For the time being, The Crown Estate has no plans to invite bids and will not consider applications for any other areas of the Pentland Firth and Orkney waters.

Ends-

31 Mar 2010