Renewables in Argyll and Bute - The Council's View

ARGYLL AND BUTE RAISES RENEWABLES PROFILE IN EUROPE

Argyll and Bute is rapidly becoming the hot topic in Europe’s renewable energy sector, according to the area’s development chief. George Harper, Argyll and Bute Council’s director of Development Services, recently returned from a trip to Brussels during which he highlighted and promoted the potential of the area – and in particular Kintyre – as a ‘Renewable Energy Hub’. The interest in his presentations was such that he has now been invited to address the European Maritime Day Stakeholder Conference in Rome, Italy next week. The conference will feature some of Europe’s biggest players in terms of all aspects of maritime affairs, including renewable energy. George has been asked to use Argyll and Bute as a case study under the heading ‘Energy from the Ocean – Emerging Technologies’. “This is a very exciting time for the area in terms of renewables, and in particular for the Kintyre peninsula, which is rapidly becoming Scotland’s powerhouse in terms of investment in this sector,” he said. “There is a great deal of interest – not just in Scotland and the UK but also in Europe - regarding our integrated and holistic approach to developing the area as a renewable energy hub. To be invited to speak at such a high profile event is an indication of the stature we now beginning to have in this field.” It is widely recognised that a range of renewable energy technologies including wind, wave and tidal is a key sector of the local economy and a potential source of significant future sustainable economic growth.  George will not only highlight the anticipated effect of the renewables boom on the area’s employment statistics. He will also stress that, if managed correctly, Argyll and Bute’s resources could transform the fortunes of some of the areas more peripheral communities and their inhabitants.  Campbeltown and the surrounding area has been identified as an area of employment deficit, and it continues to suffer from the out-migration of its economically active and skilled population, and the associated negative effects of this on the economy.  To help redress these problems, Argyll and Bute Council and Highlands and Islands Enterprise developed the Kintyre Action Plan, and a number of regeneration activities have been identified.  Increasingly, the opportunities offered by the growing renewables sector - and in particular marine renewables - is a key focus of this work.  Several major developments have already taken place, among them the takeover of the former Vestas wind turbine manufacturing plant at Machrihanish – now called Welcon Towers - by Skykon. This represents a £45million+ investment and will create or safeguard 300 jobs over three years. In addition, the Council is investing heavily in infrastructure at Campbeltown harbour to enable it to serve large marine developments not just along the Scottish coast, but that of Ireland and north west England as well. Argyll and Bute Council’s spokesperson on Economy, Environment and Rural Affairs, Councillor Robert Macintyre, said that Argyll and Bute’s abundance of tidal, offshore wind and wave resources makes it ideal as a centre of renewable energy activity. “Argyll and Bute has a coastline approximately the same size as that of France, and it is very exciting that we are now finding ways to take advantage of that,” he added. Whilst to date the majority of commercial renewable development has been concentrated on onshore windfarm development, that focus is now shifting to other forms of renewables with a particular emphasis on marine and tidal development.  “Given the location of Argyll and Bute, we are very well placed to make the most of the growing opportunities within these evolving fields,” Councillor Macintyre said.  “The fact that we are now being invited to give presentations at events such as the European Maritime Day Stakeholder Conference is a measure of how interested the international players in this sector are in what we are doing. “This is not about making a fast buck. We are acutely aware of the importance of harnessing and managing our natural resources in a sustainable way to ensure that we secure wide and long term economic benefit to Argyll and Bute as a whole and, in particular, our peripheral coastal and island communities such as Kintyre.”  Establishing Argyll and Bute as a Renewable Energy Hub will:  • Create well paid skilled jobs in an area of employment deficit – we are hoping to secure European Social Funding support linked to the likely European Regional Development Fund investment • Increase its working age population  • Establish a world class manufacturing operation in Kintyre in a growth industry – with provision of turbines for EU and USA markets  • Create opportunities for ancillary industries and wider investment in the area.  • Maximise the area’s comparative advantage in the renewables sector  • Help Scotland and EU deliver on their renewable energy targets. The Scottish target is 50% of Scottish electricity demand by 2020, with an interim milestone of 31% to be achieved by 2011. The EU target is 20% share of total energy demand from renewables by 2020.  NOTES TO EDITORS RECENT AND FUTURE RENEWABLES-RELATED ACTIVITY IN ARGYLL AND BUTE  OFFSHORE WIND In February 2009 the Crown Estate announced the awarding of Exclusivity Agreements to 10 offshore wind sites in Scottish territorial waters (Round 2).  Three of the larger sites identified are off the coast of Argyll and Bute (Kintyre, Islay and Argyll Array). They cover 361km sq.km and could power between 300,000 and 1,000,000 households.  In addition, Scottish Power Renewables is currently looking at a location in the Sound of Islay for a tidal development project. The aim is for it to be up and running by 2011.  WIND TURBINE CONSTRUCTION AT MACHRIHANISH, NEAR CAMPBELTOWN.  On April 1 2009, Skykon took over the Vestas wind turbine manufacturing facility at Machrihanish, which is now known as Welcon Towers.  The site represents a £45million+ investment and will create or safeguard 300 jobs over three years (85 safeguarded and 215 created). The average income across the 300 jobs is £28,910, above the Argyll and Bute average of approximately £22,000 FTE.  The site will be expanded to nearly three times its current size to include new manufacturing, surface treatment, and paint halls as well as upgrading the existing facility.  An energy campus including a research and development facility will also be created with the potential to generate a further 150 jobs as well as representing a significant draw to ancillary industries. It is also expected that the expansion and development plans will generate in more than 500 temporary construction jobs.  IMPROVEMENTS TO INFRASTUCTURE Argyll and Bute Council has agreed road improvements between the Welcon Towers base and Campbeltown New Quay. Improvements are also planned for the Quay itself to enable it to service larger vessels. This work will be supported by £9 million worth of Argyll and Bute Council investment and is likely to include £4million of European Regional Development Funding.  EXAMPLES OF OTHER RENEWABLES PROJECTS • Argyll, Lomond and the Isle Energy Agency, ALIenergy, is an Energy Management Agency promoting wise energy management and supporting community and business initiatives in renewable energy. • Argyll and Bute Council has established a pioneering approach to realising greater community benefit from windfarm developments: ‘New Model of Community Trust Funds’ which is completely separate from the regulatory planning process.  • The LIMPET, located at Portnahaven on the Island of Islay, the first commercial wave-driven power station in the world supplying renewable energy to the grid. • A developing biomass sector and an indigenous industry growing up around it – there are five operational biomass plants in Argyll and Bute.  • Thirteen operational (and approved) wind farms across the area.  • There are also a number of small-scale renewable energy projects across the area, such as the community-owned wind farm on the Island of Gigha which was the first such wind farm to supply energy to the grid.