Harnessing Shetland's Natural Resources

1. Where are there similar machines in operation?

The turbines we would use are similar to those proposed for the extension to Whitelees wind farm in East Renfrewshire and there are many such turbines built and operating in mainland Europe. Similar models are also used in many off-shore wind farms.

2. What happens after 25 years when the planning permission runs out?

The wind farm is designed to operate for 25 years.  At the end of 25 years we could apply for permission to extend the life of the wind farm, by which time it is likely that the turbines would need to be replaced. 

If the wind farm was no longer required or if consent to continue was not granted, it would be decommissioned. The turbines would be removed and the bases could also be removed.  Alternatively, if it was felt to be better for the environment, the access tracks and foundations could be left in the ground and covered over, returning the site as close as possible to its original state.   

3. Will the plan to cut the value of renewable obligation certificates (ROCs) be a deterrent to the Viking Energy wind farm?

The planned cuts will not be a deterrent to Viking Energy's proposed wind farm.

Rather, Viking Energy welcomes the publication of the government's intentions. This publication provides clarity and stability in taking the wind farm forward and is actually potentially a good thing because it allows the company to plan accordingly in their investment decisions.

The value of ROCs is only one element in the overall financial consideration of the project. While ROCs are likely to be reduced, the value of the electricity generated should rise and some of the costs facing Viking are expected to come down.

Base electricity prices are going up and predicted to go up. The decision to invest or not in Viking will depend on crystal clarity on the potential value of contracts going forward. It also depends on clarity on cost elements, not least of which would be transmission costs on the interconnector.

All those things will be taken into account at the appropriate time and a view taken on overall viability. But clarity on ROC values going forward is a good thing from our perspective.

4. How does the size of the turbines compare with Burradale?

The turbines at Burradale have a 45m tower and each blade is 26m long, giving a total height to the tip of the blade of 71m.

No turbine model has yet been selected for the Viking Energy development. However, the turbines being considered for the site will be roughly double the height of those at Burradale.

The towers will be up to 90m in height and the blades will be up to 55m long, giving a maximum total height to tip of 145m. The power output from such turbines will be several times greater than those at Burradale.

5. Will the power produced by the wind farm be used in Shetland or exported elsewhere?

The power generated by the Viking wind farm would feed the Shetland grid first before exporting power to the Scottish Mainland. Shetland's peak electricity demand is just over 50 megawatts (MW) so there would be a large amount of surplus renewable electricity which would be exported elsewhere via a sub-sea interconnector cable. This clean surplus energy may be able to counterbalance Shetland's considerable remaining dependency on fossil fuels.

Scotland produces a surplus of energy at the moment, but several major power stations are due to close in the next few years leaving an energy deficit. Increasingly, the UK's electricity supply relies on imported fossil fuels. By increasing the amount of indigenous renewable energy generated, we are reducing our dependence on these imports.

It should also be borne in mind that electricity usage is not equal to overall energy usage. People also burn fossil fuels in other aspects of their lives such as heating, transport and manufacturing. Viking Energy supports the idea that we ought to aim for overall energy sufficiency in Shetland, Scotland and beyond.

6. Is it true that wind farms cannot replace conventional power stations?

Not quite. Our electricity supply requires a mix of generation sources and the more that can be produced from renewable sources such as wind means the less that has to be produced using fossil fuels. Wind energy is intermittent, but the UK electrical system is designed to cope with this, as well as the instantaneous failure of transmission lines or the sudden shutdown of a nuclear, gas or coal-fired power plant. Every unit of electricity produced in a wind farm reduces the amount of electricity that has to be produced in a conventional power plant.

National Grid has published a report debunking the myth that planned increases in renewable energy installations will require a similar increase in fossil fuel-based backup capacity.

7. What is the difference between the capacity and the capacity factor of a wind farm?

The installed capacity (or "nameplate" capacity) is the maximum possible amount of energy a particular power station or wind farm can produce at a particular moment. Of course no power station or wind farm produces energy at the same level all of the time so we use capacity factor to represent the summation of the variable output over a period of time, usually a year.

8. Why don't we use marine energy instead?

We need to do this as well, not instead, although generating energy from waves or tidal currents is not yet commercially viable. It is likely to be some years before either wave or tidal technology reaches a stage where it would complement wind energy as a viable way of generating electricity.

Being at the forefront of on-shore wind will help to position Shetland as a leader in renewable technologies. Shetland will then be well placed in the future to capitalise on off-shore wind, then wave and tidal energy, using the skills and experience developed locally on what will be a pioneering on-shore wind farm.

9. Is investment in Viking not too big a financial risk for the Trust?

Shetland Charitable Trust wants to increase the income to the community funds to be in a better position to continue to provide the people of Shetland with the services, facilities and infrastructure currently paid for by the funds.

No investment is without risk and the existing funds are invested in various ways, with varying levels of risk. At all times the trustees have to make decisions where they balance the risks against the likely returns. Onshore wind energy is considered a sound investment and many banks will offer preferential borrowing rates for wind energy projects.

Even so, no decision would be made on whether or not to make an investment in the wind farm without detailed analysis and lengthy discussion and debate. This cannot really be concluded unless the wind farm has planning consent as the financial institutions will not enter into the most detailed discussions on possible financing options until that time. It is only at that stage that the Trust would be able to access sufficient financial information to be able to make a final decision. No recommendation will be made to the Trust regarding investment until binding contracts have been prepared and all pertinent information is available.

10. How much money will Shetland get from the wind farm?

The total income for Shetland from the Viking Energy wind farm is expected to be £930 million across its lifetime. Current projections indicate that an estimated £23 million a year may be paid to Shetland Charitable Trust in profits. To put this into context, the Trust currently spends around £1 million every month providing many services including support for the elderly, infirm and vulnerable people. as well as funding for culture, sport and environmental projects.

It is standard practice for local communities near a wind farm to receive an annual payment from the wind farm company, known as Community Benefit. It is estimated this payment could be worth over £1 million a year. The local communities usually manage Community Benefit themselves.

Further payments will be made in the form of rentals to local landowners and crofting tenants, on wages, contracts for supplies, services and technical support and other payments.

We arrived at these figures by drawing on information from operating wind farms and utilising models used commonly by financial experts within the electricity generation industry. We have also taken advice from respected, independent analysts who have thoroughly researched the economics of the project and are confident that their figures are robust. All figures are based upon variable factors which could be subject to change such as the actual price paid for the electricity generated, the productivity of individual turbines and the assumption that the wind farm is built to the proposed scale.

11. Who pays for the cost of developing the project?

The development costs will be shared between the partners. The costs of developing the project - including expert reports on wildlife, birds and archaeology for the Environmental Impact Assessment - are likely to be around £4 million. This does not include the cost involved if there is a local public inquiry.

12. What guarantee do you have that SSE will not take all the profits?

Simply, it is not actually possible for SSE to do so. As one of the equal partners, Scottish & Southern Energy will only receive half of the profits arising from the project. The partnership is under no obligation to sell the power from the wind farm through SSE so, while this is possible, it could only happen if the power is being sold at the demonstrable and benchmarked wholesale market rate. SSE's supply business may or may not thereafter make profit reselling that power at retail level but this is the same as any company would have made and does not come at the expense of wind farm profits. Similarly, one part of SSE's group business may gain revenue as an owner of the sub-sea interconnector. However, the charges paid by Viking Energy for the use of the interconnector are set by National Grid plc and approved by the regulator, Ofgem, so there's no opportunity for this part of SSE to influence wind farm profits.

13. Can we get free or cheaper electricity for Shetland from the wind farm?

The price of electricity is market regulated throughout the UK and Viking has no authority to offer discounts to local consumers supplied through the national grid.

Consumers in Shetland benefit from the deregulated market where the prices charged are separated from the cost of the local supply. The electricity supply in Shetland is heavily subsidised to maintain a level of fairness of price throughout the UK. But the same legislation that ensures Shetland is fairly protected from its high local generation costs make it difficult for Shetland to have a lower electricity price than the rest of the country.

Artificially low electricity prices are also likely to discourage people from reducing their energy consumption, which is not the aim of a sustainable project such as the Viking Energy Wind Farm. As an alternative, community benefit payments and Charitable Trust funds could be used to make sure that homes in Shetland are properly insulated, are operating at maximum efficiency and have access to micro-generation to reduce energy bills and target fuel poverty since Shetland has amongst the highest levels of fuel poverty in Scotland.

14. Is it safe to build on such deep peat?

Many wind farms across the country are built on deep peat. The turbine foundations themselves will be anchored to bedrock below the peat which makes the wind farm quite stable and safe.

There are particular issues that need to be addressed when constructing a wind farm on peat but the entire industry continues to work closely with the environmental agencies to understand the best techniques when building wind farms, in order to combat problems and prepare for any incidents.

Peat slides occur naturally all the time, so nobody can say they would never happen. There are clear signs around Shetland of peat slides which have taken place historically. By using sound construction practices and specific peat management plans it is possible to avoid increasing the naturally present risks. There are also measures identified to manage and react to any incidents that may occur during construction. 

15. What happens to the roads if they are wrecked by construction lorries?

Wind farm related traffic would be restricted to Shetland's excellent main A roads to protect more fragile side and single track roads. Changes have been made to the proposed project to remove any need to use parts of the single track network. Planning conditions will also be in place to ensure that any damage to roads is repaired following construction. Many of the wind farms in Scotland have been built in areas where it has been necessary to transport turbines on narrow, winding rural roads. This has been achieved by careful planning and appropriate equipment, such as modern all-wheel steering trailers.

Viking Energy's original Application and Addendum to the Application demonstrate that delivery of equipment and construction issues have been addressed in considerable detail. A thorough assessment of the road network has identified that only some minor upgrading will be necessary. Many communities see improvements to roads, including straightening difficult corners and bends, thus improving overall road safety, as one of the benefits of having a wind farm nearby.

16. If the wind farm doesn't generate the full 457 megawatts will we end up with more turbines to fill the "gap" on the interconnector?

The interconnector must always have the capacity to cope with the energy generated by the wind farm operating at peak levels. This means that the only "free space" on the interconnector would be what was available when the wind farm wasn't producing. The cable is expected to have some small space that we hope other renewable projects (not just wind energy) can utilise thus encouraging valuable research and development activity.

17. Why has the carbon payback figure been reduced so dramatically?

There are a number of reasons. The first one is straightforward - we have reduced the size of the wind farm and the quantity of peat we will disturb and in particular we have removed an entire section around Voe and Collafirth which was on peat which was in good condition.

It became apparent after we submitted the original application that carbon payback and the whole issue of building on peat was becoming an issue for people - both in Shetland and elsewhere. As a result we have carried out a great deal more survey work.

Our initial work had calculated the carbon payback times on an assumption that all the peat on the site was in pristine condition and that all the peat that was disturbed would be completely destroyed.

Since then we have done much more survey work looking at the actual condition of the peat. We have now carried out walk-overs on the site on many occasions and carred out hundreds of tests.

More than two thirds of the peat that would be disturbed by the wind farm infrastructure* is in poor condition and is emitting rather than storing carbon and this information has been fed into the model to replace the previous information which was based on desk top assessments.

We have followed best practice in all our work and the way we have applied the model has been reviewed independently by the MacAulay Research Institute.

*Viking Energy disturbance footprint fully surveyed: 232 hectares. Viking Energy central mainland overall site: 18,700 hectares.

18. Will there be a health impact assessment?

Although a health impact assessment is not a requirement of the consent application process, Viking Energy did commission one a number of years ago.

It was only partially completed but abandoned when it was decided to review the wind farm project and prepare an Addendum with a revised design to address the objections and comments made after the original Environmental Statement was submitted. The statutory Planning process does not require a Health Impact Assessment nor are there any guidelines provided by either NHS or the Government to specify the scope, content or procedures for preparing an HIA.

The NHS has produced a report on the subject which can be accessed here.

19. What will happen if investment in Viking Energy is unsuccessful?

If investment in Viking Energy is unsuccessful, the risk to the Shetland Charitable Trust is limited. Only any sum agreed by Shetland Charitable Trust as an equirt investment in the project will be at risk.

Around 80% of the build cost for the wind farm will be borrowed using non-recourse finance. This means that the lending bank is only entitled to repayment from the revenue of the project, not from other assets of the borrower. Non-recourse lending is common in project finance and the only security required is the project itself.

The remaining parts of the Shetland Charitable Trust's reserves will stay invested in the stock market and other subsidiary companies.  None of these of other investments are risk free.

Read more about SCT's investment in VE here.

20. What happens when the wind is either not blowing or too strong?

Wind turbines start to turn in a gentle breeze and reach their maximum output at a wind speed around 12 metres per second (27 miles per hour).  At wind speeds of about 60 miles per hour, most wind turbines shut down to prevent damage.

There are days in Shetland when the wind doesn't blow although it doesn't happen very often.  When this happens electricity continues to be provided by other forms of generation - nuclear, coal, gas or oil. 

21. Why are wind turbines always white or light grey and can they be painted different colours?

White or light grey are the colours which blend best into the landscape, bearing in mind all the possible weather conditions.   Most of the time turbines are seen with the sky as a backdrop. 

In theory they could be painted different colours, but in practice planning authorities usually insist they are painted white or light grey.

22. Why is the planning application boundary so large and what work can be done inside it?

The size of the planning application boundary reflects repeated advice from environmental agencies such as SNH, SEPA and RSPB as part of a scoping process for the most appropriate area of Shetland for large-scale wind farm development.  It also reflects the preferred area for development contained within the Shetland Islands Council draft locational guidance ‘Planning for Wind Energy in Shetland’ (SIC 2003).

There is a misconception that borrow pits, or any other infrastructure, can be opened, placed or built anywhere within the boundary and without compliance to normal quarrying regulations. This is categorically not the case.

Details of the proposed borrow pits are presented here. Control measures for the excavations are discussed here.

Borrow pits, and other excavations such as access tracks, are beholden to all normal environmental legislation relevant to quarrying or similar operations. 

The 2010 Addendum followed extensive work with SEPA to develop the Site Environmental Management Plan which SEPA welcomed with the principles acceptable as a means to address pollution prevention issues.