Green light for Pentland Firth power scheme

The green light has been given to kick off the first phase of the MeyGen project – the world’s largest tidal power development which will be installed in the Inner Sound of the Pentland Firth.

MeyGen has announced that terms have been agreed for a funding package of £50m and this means construction of the first phase will now begin.

MeyGen, the world’s largest tidal stream development said that it has agreed terms for a funding package to finance the construction of the first phase of its ground breaking 398MW tidal array project in the Pentland Firth.

When fully completed, the company says that the MeyGen project will have the potential to provide clean, sustainable, predictable power for 175,000 homes in Scotland, support more than 100 jobs, reduce carbon emissions, and deliver significant, long-term supply chain benefits for UK economy.

Approximately 50 direct jobs will be created during Phase 1 of the project, with a further 70 indirect roles created throughout the supply chain.

Those behind the project say that as the first large-scale tidal project of its type in the world to successfully reach a funding agreement, the MeyGen project will be a catalyst for the global tidal power market, signalling the transition of the industry from demonstration projects to commercial arrays.

The funding syndicate includes: Atlantis; the Department of Energy & Climate Change; The Crown Estate; Scottish Enterprise via the Renewable Energy Investment Fund (REIF); and Highlands and Islands Enterprise.

HSBC will be acting as the security trustee and account bank for the project, having also facilitated various guarantees to key stake holders (National Grid PLC and Scottish Hydro Electric Power Distribution PLC) to support the project.