VIKING Energy has welcomed the government’s pre-budget announcement that it is to extend its incentive scheme for renewable energy projects until 2037.
The 10-year extension means that the support mechanism for green energy developments now offers significantly longer-term stability for developers and windfarm operators.
In his speech, chancellor Alistair Darling said the extension would “ensure that investors [in green technologies] can plan with confidence”.
Viking Energy project officer David Thomson said: “The government has extended the Renewables Obligation in order to give the companies behind proposed developments the confidence to continue investing.
“This move will only help Scotland meet its target of generating 50 per cent of all of our electricity needs from renewable resources by 2020. The proposed Viking windfarm could make a major contribution to the challenges of tackling climate change and energy security.
“We remain convinced that the proposed 150-turbine development in Shetland would generate substantial profits for the local community even without any government incentive. However, this announcement can help reassure local people who have concerns about the risk of investing in the development.”
The Renewables Obligation came into force in April 2002 as part of the Utilities Act (2000). It is designed to ensure power suppliers source a specified proportion of the electricity they supply to their customers from renewables.