Power deal – Navantia annouce supply agreement with community windfarm
A ground-breaking deal between Point & Sandwick Trust and Navantia UK who operate the Arnish yard has been announced.
It will result in a Power Purchase Agreement for the Lewis community company to supply not only the Arnish yard but also two other Navantia UK yards at Methil in Fife and Appledore in Devon.
The deal is built on a new UK Government provision which encourages small scale generators to supply companies by matching output every half hour to the client’s consumption.
Remarkably, for most of the time, the three Point & Sandwick turbines generate sufficient electricity to allow that matching to take place. When the Lewis turbines are not producing power, “cover” is provided by a longstanding partner, Engie, who are a supplier of renewable energy.
Point & Sandwick development director, Calum Macdonald, told the Gazette: “We take a great deal of pride from having won the contract to supply what has been an iconic source of employment in the islands since the 1970s.
“But it goes beyond that and I think a lot of people will be amazed that our three turbines can also supply the Navantia yards in Fife and Devon.
“I hope this demonstrates that community owned energy can compete and deliver at large scale and not only supply businesses on the island but across the UK.
"The great thing is that all the money made from selling power to Navantia will come back into the community”.
The first approach came from Navantia at Arnish to Point & Sandwick to ask if they would be interested in tendering for the power supply to Arnish.
As discussions developed, the feasibility of matching demand from the other two yards with clean energy from Lewis was confirmed.
Calum Macdonald, development director at Point and Sandwick Power, said they are already committed to Power Purchase Agreements with Essence of Harris and the Stornoway Port Authority “but this is by far the biggest we have done”.
Speaking in advance of an expected signing ceremony, Navantia UK’s general manager at Arnish, Albert Allan, said: “By drawing its electricity through this route, Navantia UK is directly supporting the communities around the Arnish yard. The agreement also keeps the benefit of that spending close to home”.
All renewable supply under the new contract is backed by Renewable Energy Guarantees of Origin certification.
UK Energy Minister Michael Shanks said: “After two fossil fuel crises in just five years, it is clear: businesses like Navantia UK are turning to clean, homegrown power - not just because it’s better for the climate, but because it lowers their bills and drives growth.
“This is what the clean power mission looks like in practice: British industry powered by Hebridean wind, and the benefits flowing back to the communities that generate that power.”