The Scottish company aiming to establish the world’s biggest tidal-power project in the Moray Firth has signed a multi-million pound contract to sell electricity generated by the scheme.
MeyGen’s 10-year deal with independent energy firm SmartestEnergy could be worth more than £50million over its lifetime, it was announced yesterday.
The agreement is also expected to secure the long-term revenues needed to prove the commercial viability of the project, while highlighting the potential of tidal-energy.
It comes just weeks after Atlantis Resources, Edinburgh-based MeyGen’s parent, revealed it had secured a £51million-plus funding package to take the project forward.
Under a first phase, four 1.5 megawatt (MW) turbines will be installed on the seabed.
Eventually the scheme could have up to 269 turbines, generating enough power for an estimated 175,000 homes.
MeyGen chief executive Dan Pearson said the SmartestEnergy deal was an important step forward for the company and its backers.
He added: “SmartestEnergy is a key player in the independent generation sector in Scotland.
“We were delighted to be able to work with the company’s team here to finalise this agreement.”
Iain Robertson, Glasgow-based generation sales manager for SmartestEenergy, said: “This is a landmark deal for the marine renewables sector in Scotland and underlines the commercial potential of the industry that developers are now starting to exploit.
“Given the innovative nature of the MeyGen project and the involvement of many different public and private sector funders, structuring the agreement was quite complex and time-consuming but everyone involved worked hard to secure a positive outcome.”
Construction work for the scheme is expected to start before the end of this year.
First power to the grid and revenues are anticipated in the first half of 2016.
Funding is coming from backers including the Scottish Government, the UK Government, Highlands and Islands Enterprise and the Crown Estate.
MeyGen recently announced it had signed a 398MW, 25-year seabed lease with the Crown Estate – the largest marine energy lease to be awarded by the body.
SmartestEnergy has offices in London, Ipswich and Glasgow.
It buys electricity from more than 150 renewable-energy projects in Scotland.
These include the European Marine Energy Centre, in Orkney, where a number of generation devices are on trial.
Welcoming the tie-up between MeyGen and SmartestEnergy, Energy Minister Fergus Ewing said it highlighted Scotland’s “huge energy potential”.
He added: “The Pentland Firth development takes our ambition to the next level and further cements Scotland’s reputation as a world leader in deploying renewables technology.
“By developing clean, green energy, we are creating opportunities for communities in the north of Scotland and delivering jobs and investment.”