EDP Says Brexit Could Delay Go-Ahead for Scottish Wind Energy Project

Source: By Daniel Alvarenga and Andrei Khalip, Reuters • Posted: Friday, July 1, 2016

LISBON — Britain’s decision to leave the European union could delay the Moray Firth offshore wind energy project in Scotland owned by the renewables unit of Portugal’s Energias de Portugal-EDP, the company’s chief executive said on Thursday.

Antonio Mexia told reporters that Britain’s Brexit vote last week has generated a lot of uncertainty that could complicate authorisation of the 1,116 MW, project to go ahead.

The Moray project’s planned generation capacity would be enough to meet the electricity needs of 700,000 households.

“There could be delays with the decision on the project in Scotland and about the launch of the tender. But we remain interested. We’ll just have to wait,” Mexia said.

EDP Renewables said that while the project has all the necessary permits to proceed to construction, it still requires a so-called Contract for Difference that sets the revenue stream from electricity sales.

Such contracts are auctioned by the British government, which has said that it expects to hold the auction at the end of this year.

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(Reporting By Daniel Alvarenga and Andrei Khalip; Editing by Elaine Hardcastle and David Goodman)