Scottish onshore wind project shelved as costs soar by nearly £200m

The Sanquhar II Wind Farm project in southern Scotland has been halted as development costs soared from £300 million to £500 million

Big Zero Report 2023

Sanquhar II Wind Farm, slated to be the UK’s fourth-largest onshore project featuring 44 turbines with a capacity of 308MW, is now on hold.

The onshore wind project in southern Scotland has been halted due to a sharp increase in costs.

Developer Community Windpower has confirmed the suspension of the project after estimated development expenses surged from approximately £300 million to £500 million.

The project faced a setback due to what is described as an “unfair” windfall tax imposed on new renewable power plants.

The project was at an advanced stage, with civil construction set to commence next year and the first power generation expected by summer 2025.

The cost increase for Sanquhar II was attributed to a combination of factors, including severe inflation, a four-fold rise in interest costs, and the devaluation of the pound.

Community Windpower, the developers behind SQII, have called on the UK government to consider several measures, including an exemption from the windfall tax and the introduction of investment allowances.

Rod Wood, Managing Director at Community Windpower, stated: “We’ve run the financial models. We cannot get the return on capital that we need to cover the bank requirements for financing.”

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