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Developer says project’s costs had increased by around £200m
Community Windpower has shelved its 308MW Sanquhar 2 onshore wind project in Scotland.
The company said that the 44-turbine project “has ground to a halt as a consequence of the unfair ‘Windfall Tax’ on new renewable power plants,” a statement read.
“This project is ‘shovel ready’ with civil construction starting next year and first-generation due summer 2025.
“Sanquhar 2 was projected to cost c. £300m however infrastructure costs have been hit with a triple whammy of extreme inflation, four-fold increase in interest costs and a weak pound. Costs now exceed £500m which remains cheaper than gas-fired electricity – however strangely polluting gas generators are exempt from ‘windfall tax’.”
As such, Community Windpower has called on the UK Government to exempt new projects from the windfall tax, as well as introduce investment allowances in line with oil & gas projects.
In addition, it said a sunset clause on the windfall tax should be introduced in line with Ireland and the EU.
The project received planning consent at the end of August. |
