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 06 September 2007
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Adjustment of Transmission Charges to Promote Renewable Generation in North Scotland

Section 185 of the Energy Act 2004 gives Ministers power to adjust until 2024 transmission charges for renewable generators in a specified area of Great Britain if high transmission charges would otherwise deter renewable development in that area.  The power was taken to ensure that transmission charges did not prevent renewable development in the north of Scotland where there is significant potential for renewable development, contributing to the Government's target of meeting 10% of electricity from renewable generation by 2010.  A DTI commissioned independent study into the impact of transmission charging on renewable development in northern Scotland had revealed that investment in renewable generation in the Scottish isles were more likely to be limited as a result of transmission charges.

The Government indicated, in March 2005, that they were minded to develop an adjustment scheme to support renewable generation in the Scottish islands of Shetland, Orkney and the Western Isles. A consultation in July of that year sought views on whether such a scheme should extend to any part of mainland Scotland and the level of the discount on transmission charges.

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