Plans to turn Scotland into the renewable-energy powerhouse of Europe are under threat from new rules being proposed by the UK electricity regulator.

Ofgem is preparing to enforce higher charges on electricity generators located further away from large population centres.

Scottish Renewables compared the planned charging structure to a ‘don't build here’ sign for the wind-farm industry and the fledging wave/tidal sector.

Ofgem is expected to approve the changes to the cost of connecting to the National Grid, which would make it more expensive for generators located further away from cities and towns.

The regulator said this would cut the amount of electricity lost as heat, as it travels along cables, saving £15 million a year and 150,000 tonnes of carbon emissions.

For a large wind farm in northern Scotland, with an annual turnover of £21 million, the connection charges would rise from £60,000 a year to £200,000, Ofgem said.

Source UK energy.

August 14 2007