The AfL is in respect of the Westray South Project in Orkney, Scotland, which SSE has just relinquished. The project incorporates the planned installation of up to 200MW of tidal energy turbines over two phases. A consent application for the first 60MW phase is due to be submitted later in 2014.
The investment figure required to construct phase one of the project is expected to be in the region of £200 million. This first phase will generate enough electricity to power 40,000 homes, saving an estimated 56,000 tonnes of carbon dioxide emissions per year.
The Westray South site is adjacent to the European Marine Energy Centre (EMEC) tidal test facility and is located in a relatively sheltered position with moderate water depths. These factors increase its potential as an early development site.
“This is a very significant development for DP Energy and is a further expression of our confidence in tidal energy generation as a key component in the portfolio of reliable, predictable and emissions free power sources needed to take us into a more self-sustainable future” said Simon De Pietro, managing director of DP Energy. “The approach we take is technology neutral and based on the fact that the site and project comes first and that technology is simply a means of achieving cost competitiveness and driving down the cost of energy. This ensures projects are buildable in the future as the least cost solution develops and as the industry matures and ensures potential competition in the market,” Despite remaining technology-neutral, DPME is partnering on a project specific basis with credible OEMs and with demonstrated and competent technologies.”
Richard Escott, Head of Offshore Development at SSE Renewables, added that the decision to transfer the ongoing and future development of the Westray project to DP Marine Energy forms part of SSE’s ongoing review of marine assets which the company set in motion in September 2013.
The acquisition increases DP Energy’s overall portfolio of tidal energy projects to 330MW, making the company the largest such independent developer in Europe, with a number of other projects in the pipeline.
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