Turbine Talk – ‘Local authorities have a transformative opportunity to lead on decarbonisation’

A recent report exploring the potential for public ownership of clean energy in North East Scotland highlighted Orkney Community Wind Farms as an exemplar case study of how councils can meet financial challenges while tackling the climate emergency.

The research, carried out by Transition Economics and Platform, was developed to showcase the opportunities that public ownership of energy generation could create for local authorities.

The case study mirrors our own viewpoints, emphasising the benefits that a council-owned development could bring to our communities – namely an annual income for the council, direct financial benefit to communities, helping to meet net zero aspirations and economic potential from the new interconnector.

It also discusses the reality that common resources in Scotland, such as wind and sun, are exploited for profits which largely go to private companies, both across the UK and Europe.

One of the Council’s motives in developing Orkney Community Wind Farms is that all profits will stay in Orkney. The likelihood of private companies developing on or near the three sites (Quanterness, Hoy and Faray) was high – and it would have meant that Orkney residents would still be impacted by the wind farms but with far less benefit.

The research also reveals that public ownership of electricity generation is commonplace across Europe which has shown that it improves democratic accountability and provides a direct benefit to communities at a local level, both of which are vital for Orkney.

Kristopher Leask, Kirkwall West and Orphir Councillor, contributed to the publication. He said: “For too long, communities across Scotland have seen the private sector exploit our world-leading renewable energy resources.

“Local authorities have a transformative opportunity to lead on decarbonisation and reclaim infrastructure for the common good. I’m delighted that groups in the North of Scotland are campaigning for this future and hope that other local authorities follow Orkney to restructure the energy relations which are so central to our lives.”

The article, Public Energy Potential, can be viewed by clicking the link. There you will be able to download a full briefing of the research as well as the Orkney case study.

Turbine Talk – Successful completion of Groundwork Investigations in Quanterness and Hoy

Another important step for the wind farm project has been achieved with the completion of the Groundwork Investigations (GI) successfully carried out in Quanterness and Hoy.

The GI works took around four weeks to complete, starting from early October, and managed to finish on time despite the month’s inclement weather.

Central Alliance, part of the RSK Group, a global leader in the delivery of sustainable solutions, secured the contract to carry out the works following the Council’s tendering process this past summer.

Site Investigations are an important part of any wind farm development. The work involved drilling a series of boreholes and digging test pits across the sites to ascertain the soil, rock and geological conditions. To do this, excavators and small mobile drilling rigs were required.

With this complete, a number of samples will be sent away for laboratory testing which will result in an extensive geology report being prepared.

With insights gathered from this essential testing, design engineers will have the necessary information available to make informed decisions for the site’s infrastructure including the roads, hardstanding’s, cable trenches and foundations that will be required as part of the development.

In addition, these GI works will contribute to cost-effectiveness and overall efficiency of the project. By accurately assessing the ground conditions at the wind farm site, engineers can optimise foundation designs, selecting the most suitable type of foundation (e.g., shallow or deep foundations) based on the ground’s characteristics.

This informed decision-making helps reduce unnecessary construction expenses and prevents overdesigning, as the civil works can be tailored to the specific ground conditions of the site.

Moreover, identifying any geotechnical challenges in advance allows project managers to plan for potential mitigation measures and adjust the construction timelines accordingly, minimising delays and unexpected costs.

In essence, comprehensive Ground Investigations act as a preventive measure that enhances the overall success and sustainability of wind farm projects by mitigating risk.

The GI works for Faray will be carried out in early summer of 2024 when weather and conditions allow.   

The outcome of these surveys will feed into the business model which will be presented to Elected Members next year who will then make the final decision on whether to go ahead with the projects.

Orkney Community Wind Farms wins COSLA Excellence Award

Orkney Islands Council has won a COSLA Excellence Award for its commitment towards decarbonisation through Orkney Community Wind Farms.

COSLA’s Excellence Awards, a celebration of Scottish Local Government success, took place on 28 September.

The annual event recognises the great work, talent and innovation across Scottish Local Government.

The Council’s Strategic Projects team won under the category ‘Just Transition to a Net Zero Economy’ which looked at the commitment and investment that Council projects across Scotland are making to deliver carbon neutrality.

All 32 of Scotland’s Councils were invited to submit entries earlier this year with over 200 applications received across five categories.

The proposed project, which consists of three 6-turbine wind farms, has the potential to generate 90MW of electricity and could bring in an average real profit of £5.5 million per annum for the Council.

The Community Benefit Scheme will also bring in an additional £432,000 per year which will provide funds to local communities to develop transformational projects of their own.

Orkney Islands Council Leader, James Stockan, said: “We are delighted to win this award and feel it strongly showcases our commitment to carbon neutrality.

“Although the project still needs to go to Elected Members next year for final approval, the effort and investment carried out to date has achieved significant milestones, and this award further demonstrates that success.

“The wind farms made an essential contribution to meeting Ofgem’s requirements of securing 135MW of renewable energy which was approved earlier this year for the new 220MW interconnector linking Orkney to the Scottish mainland.

“Orkney, with its abundance of natural energy, requires the cable to maximise on these resources and will contribute to Scotland meeting carbon zero targets by 2045.

“The new cable will be vital in supporting the renewable energy industry in Orkney, especially wave and tidal, all of which will help contribute to a net zero economy while creating jobs and upskilling our workforce.

“I’d like to congratulate our projects team who has been developing the project on winning this prestigious award, it’s fantastic to gain recognition for this highly deserved project.”

Turbine Talk – How much profit will Orkney get from the wind farms?

It’s estimated that Orkney Community Wind Farms will generate up to £5.5 million profit per year for Orkney. Over the 25-year lifespan of the project, that equates to nearly £138 million.

When we talk about profit, this is the sum of money the Council will receive after all repayments are made including construction costs, grid payments, operational costs, loans, interest, taxes, fees and community benefit payments.

The projected costs for the procurement of turbines and construction for all three sites will be around £110 million.

To clarify any doubt, the £138 million is the profit that Orkney will gain after paying off the £110 million.

It will come as no surprise to anyone that Orkney Islands Council has been facing financial challenges for years. There have been major cuts from the Scottish Government while at the same time the costs to run essential services continues to rise.

OIC must find ways to tackle these twin challenges and bring more income into Orkney. Orkney Community Wind Farms, if approved by Elected Members next year, will provide a large funding stream for the Council each year that will help us to continue to preserve and enhance our services.

You may have heard us refer to the ‘community fund’. This is the £5.5 million annual profit mentioned earlier. Decisions will be made in the future by Councillors as to how that income will be utilised for the betterment of the Orkney community. As the revenue is coming to the Council who provide the vital local services, all communities across Orkney will benefit from this fund.

OIC will remain the sole owner of the wind farms so that 100% of the profits will stay in Orkney. This means that by being Council owned, there will be four times more benefit to the Orkney economy rather than if they were privately owned.

There is also the ‘location-specific Community Benefit Fund’ that will provide a £432,000 annual payment to local communities. This money will go directly to communities where they will be able to develop projects that best meet the needs of their own areas.

Turbine Talk – What will the Carbon Savings from the wind farms be?

One of our key priorities for developing these projects is to help create a carbon neutral future for our islands.

Orkney Islands Council is committed to reducing our carbon footprint by supporting the pioneering renewables scene in Orkney.

Unfortunately, no form of electricity generation is completely carbon free. The manufacture of turbines, the construction of the wind farms and transport of materials will all produce carbon.

However, once the wind farms are in operation, they would deliver carbon-free electricity and displace carbon emissions which would otherwise result from energy generation by fossil fuels.

As part of an Environmental Impact Assessment (EIA) we were able to determine what the carbon payback period would be for each site.

The ‘carbon payback period’ is an estimate of how long it will take a wind farm to offset the greenhouse gases emitted as a result of its construction. After this period, each wind farm will begin displacing grid-based electricity generated from non-renewable sources which is the ‘carbon savings’.

One of the questions we’ve been asked as part of our public engagement discussions is how long the carbon payback period will be for each site.

For Quanterness and Faray, this would be around three months. You can read how this is calculated in the EIA’s non-technical summary located here.

For Hoy, the carbon payback period will range from between 11 months to 23 months. The reason for this is because the wind farm will be sited on land with peat, and peat has the potential to release carbon into the atmosphere in the form of CO2 if it is disturbed.

The calculation for Hoy was determined by using the Scottish Government’s Carbon Calculator for Wind Farms on Peat Lands. You can read more about how this was calculated in the EIA’s non-technical summary located here.

The design of the wind farm was developed to reduce the infrastructure that will be installed on deep peat areas. A Peat Management Plan will be in place before construction begins which will include details of peat excavation, storage and a peat restoration plan.

Public invited to Orkney Community Wind Farms drop-in events

The team developing Orkney Community Wind Farms will head out to communities across the county next month and provide updates on the progress of the project.

The wind farms, being developed by Orkney Islands Council, consists of three 6-turbine developments located at Quanterness in St Ola, Wee Fea in Hoy and on the island of Faray.

If the Council decides to proceed with the project, the three sites will contribute nearly 90MW to the new 220MW electricity transmission link between Orkney and mainland Scotland, recently approved by Ofgem.

The series of community drop-in events will take place throughout September, with Council officers and Elected Members on hand to discuss the projects.

Details of the events are as follows:

  • Wednesday 6 September at The Pickaquoy Centre from 1pm – 4pm and again from 6pm – 8pm
  • Wednesday 13 September at the YM in Lyness from 1pm – 4pm and at the North Walls Centre from 6pm – 8pm
  • Monday 18 September at the Eday Heritage Centre from 1pm – 4pm and again from 6pm – 8pm
  • Monday 25 September at the Rendall Community Centre from 2pm – 7pm
  • Tuesday 26 September at the Community Room at Westray Junior High School from 2pm – 7pm

Orkney Islands Council Leader, James Stockan, said: “It’s been some time since the Council has gone out to communities and discussed the wind farm project face to face.

“These events are valuable because it gives people the chance to ask questions and understand why the Council is developing the wind farms, and the potential benefits and opportunities that they could bring to Orkney once operational.

“We encourage anyone with an interest in the project to come along, view the information available and discuss any concerns they may have.”

In addition to the drop-in events, a new website will be launched which will provide details of the project’s development and offer a central point of information.

Currently the Council’s officer team are updating the business model which includes further site investigations and feasibility studies, all of which will be presented to Elected Members next year who will then make the final decision on whether to go ahead with the projects.

Orkney Community Wind Farms shortlisted for prestigious award

Orkney Community Wind Farms has been shortlisted as a finalist in this year’s COSLA Excellence Awards.

The 2023 Excellence Awards are an annual celebration of Scottish Local Government success – celebrating the very best of Scottish Local Government.
The project is one of three finalists in the category ‘Just Transition to a Net Zero Economy’.

All 32 of Scotland’s Councils were invited to submit entries earlier this year with over 200 applications received across five categories.

The proposed project, which consists of three 6-turbine wind farms, has the potential to generate an average real profit of £5.5 million per annum for the Council, which over the 25-year lifespan, would equate to a profit of nearly £138 million.

The wind farms also made an essential contribution to meeting Ofgem’s ‘Needs Case’ of the 220MW transmission cable linking Orkney to the Scottish mainland and will support the vital renewable energy industry in Orkney.

Orkney Islands Council Leader, James Stockan, said: “With over 200 submissions to the COSLA Excellence Awards this year, and only 11 Councils shortlisted, this really is an outstanding accomplishment.

“The Council is committed to achieving net zero carbon emissions as part of our contribution towards tackling the climate emergency, and the wind farm project is yet another example of this commitment.

“Without the wind farms, Ofgem would not have approved the new cable which is needed to take advantage of the boundless wind, tidal and wave resources that Orkney has, and unlock enormous levels of low carbon energy.

“If the project is approved by Councillors next year, there will also be major socio-economic benefits for Orkney which is imperative given the Council’s financial challenges. All of these factors have contributed to this project being a finalist at these prestigious awards.

“I’d like to personally congratulate the project’s team on their hard work to receive this recognition and wish them the best of luck at the awards ceremony in September where the winners will be announced.”

The Orkney Community Wind Farms project team will be holding community drop-in events throughout September with dates to be announced next week.

Ofgem approves transmission link for Orkney

Orkney’s Community Wind Farm Project takes a step forward with energy regulator Ofgem’s approval of a new electricity transmission link.

This approval follows Ofgem’s public consultation on the proposals of the project and the need for an electricity link from Orkney to the Scottish mainland.

To approve the ‘Needs Case’ for the cable, the regulator required a total of 135MW of renewable generation to justify a 220MW cable installation.

Orkney Islands Council will contribute nearly 90MW through Orkney’s Community Wind Farm Project, which made an essential contribution to meeting the ‘Needs Case’.

The Council’s wind farm project consists of three 6-turbine wind farms, each with planning approval, located at Quanterness in St Ola, Wee Fea in Hoy and on the island of Faray.

Since identifying the need for further development to contribute towards a new transmission cable back in 2016, a total of £2.5 million has been spent on developing the project to date.

During the initial site identification and feasibility studies, £575,000 was spent performing an Orkney wide site investigation and evaluation of potential sites. Following this assessment, the Council was able to identify three sites that met the requirements for developing a wind farm project that provided the best chance of securing planning permission and would contribute towards the Needs Case for a new transmission cable.

Following site identification, approximately £1.3 million was spent on progressing the projects through the Environmental Impact Assessment (EIA) and planning consent processes. This included site surveys, preparing EIA documents for the planning applications, and receiving technical advice. This stage resulted in all three sites receiving planning permission from the Scottish Government.

In addition, £60,000 has been spent on requirements needed to progress the wind farms and to meet Ofgem’s Needs Case. This included updating the project’s business case, securing grid applications, and applying for a Contracts for Difference.

Since the beginning of the project £540,000 has been spent on staff costs. 

Currently, the projected costs for the procurement of turbines and construction for all three sites will be in the region £110 million.

The current financial assessment indicates the project would generate an average real profit of £5.5 million per annum for the Council, which over the 25-year lifespan of the project, would equate to a profit of nearly £138 million.

From an economic report that was recently published, a new electricity transmission link between Orkney and the Scottish mainland could be worth at least £371 million to the Orkney economy, rising to £807 million if the wave and tidal energy industry makes use of the cable too.

As well as generating significant income for the county, the projects will also provide an estimated annual payment of £144,000 per project into a ‘location-specific community benefit fund’, for local communities to drive transformational projects of their own.

Orkney Islands Council Leader, James Stockan, said: “We are absolutely delighted with today’s announcement from Ofgem, this is a giant leap towards Orkney achieving our energy aspirations. Once operational, it also opens up opportunities for a number of businesses to expand, increasing employment and boosting our local economy.

“Our projects team has worked diligently to ensure that the wind farm project would meet Ofgem’s conditions. Although a final decision has not been made as to whether or not Orkney’s Community Wind Farm Project will go ahead, the potential socio-economic benefits are enormous, and given the Council’s financial challenges alongside the cost-of-living crisis we are all facing, it is essential that we find new ways of generating income.

“The three wind farms will also help us meet not only our own carbon reduction aspirations but contribute to Scottish and UK Government targets too.”

The Council’s officer team are performing further site investigations and updating the business model. These findings will be presented to Elected Members next year who will then decide if the project will proceed.