This article appears as part of the Winds of Change newsletter.

Three firms behind some of Scotland’s largest offshore wind farms have warned that the industry is in “significant and immediate risk” due to punishing grid costs.

But, they point out, according to new analysis, reform of the transmission charging system could save billpayers £16 billion.

A new report from Aurora Energy Research, commissioned by companies and published ahead of a key decision on changes from the energy regulator, Ofgem, shows that investment in the industry could be protected through reforms to the transmission charging system.

The trio of companies - Ocean Winds, Northland Power,and West of Orkney Windfarm - collectively through their projects generate enough power for a third of the UK’s homes.

Adam Morrison, UK Country Manager at Ocean Winds, said: “The magnitude and volatility of transmission charges are harming existing Scottish projects and undermining investments which will be vital for Clean Power and Net Zero ambitions.

“Amid a rapidly changing energy market, the UK has to reckon with the fact that the charging methodology is broken as it is pulled in directions it was never designed to go.

“Most importantly, the system bares a hidden cost to billpayers of billions of pounds of unnecessary subsidies for projects not burdened by these locational prices.

The report assesses what are called Transmission Network Use of System (TNUoS) charges, a levy on generators which was........

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