All the projects received exploration rights in 2009, and now leasing arrangements give each holder of the five projects the option of closing the final lease agreement should they receive final planning permission. To obtain these permits, each project must still complete environmental impact studies and feasibility studies, among other reports. Final approval will be granted by the Scottish regulator, Marine Scotland.
Potentially, the largest of the five projects is that of Spain’s Iberdrola, through its local subsidiary, ScottishPower. The Argyll Array project still has to complete several studies, including those that define its final output, which could reach 1,800 MW of capacity.
This project is part of the 10 GW of offshore wind capacity that Iberdrola says it is developing worldwide. To carry out these projects, the company has established its Global Offshore Business Division in Scotland, which will initially focus on the UK.
The most advanced project is the 400-MW West of Duddon Sands wind farm off the southeast coast of England, being developed by the Danish utility Dong Energy and scheduled to enter service in 2014. Indeed, Iberdrola and Dong already signed a wind turbine supply contract with Germany's Siemens several months ago.
Iberdrola’s other projects include the East Anglia Array, with a capacity of 7,200 MW, developed off the county of Norfolk along with Swedish partner, Vattenfall.
For its part, Repsol broke into the offshore wind sector last June when it agreed to acquire a 100% stake in British offshore wind company, SeaEnergy Renewables (SERL), a company that started the 905-MW Inch Cape wind farm.
Then, the Spanish oil company established a joint venture with EDP Renewables (EDPR), the Spanish renewable energy subsidiary of the Portuguese utility. The joint venture's main objective is to jointly develop offshore wind projects in the UK up to 2.4 GW of installed capacity. As announced at the time, EDPR will control the joint venture while maintaining a 60% stake in the wind assets that are developed.
Meanwhile, the Crown Estate said that together with Round 3 zones off the Scottish coast (zone 1, Moray Firth, and zone 2, Firth of Forth) the total awarded capacity in Scottish waters is now nearly 10 GW of a total of 30 GW around the UK.
"Scotland has an estimated quarter of Europe's offshore wind resource, making us the powerhouse of green energy in Europe,” commented Rural Affairs and Environment Secretary, Richard Lochhead. “With this wealth of natural resources it is vital that we plan now to secure the benefits of this next energy revolution for future generations.”
Sites and developers in relation to the Crown Estate’s recent announcement are:
• Argyll Array - Scottish Power Renewables
• Beatrice - Beatrice Offshore Wind Farm Ltd
• Inch Cape - Repsol Nuevas Energias UK
• Islay - SSE Renewables
• Neart na Gaoithe - Mainstream Renewable Power
"The Crown Estate has already invested £16 million in offshore renewable energy in Scotland, and plans to invest another £20 million in the next five years, funding "enabling actions" such as environmental studies and engagement work that help de-risk the projects and attract investment, added the Crown Estate's Scottish Commissioner, Gareth Baird. "We're very pleased to achieve this important milestone, and will continue to work closely with Scottish Government and developers to progress projects and attract investment, with the aim of helping meet Scotland's ambitious targets on renewable energy production."
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