The Electricity (Individual Exemption from the Requirement for a Transmission Licence) (Spiorad na Mara) (Scotland) Order 2025
The Electricity (Individual Exemption from the Requirement for a Transmission Licence) (Spiorad na Mara) (Scotland) Order 2025 grants an indefinite exemption from the requirement for Spiorad na Mara Limited to hold an electricity transmission licence for the transmission of electricity from its offshore generating station in the Isle of Lewis to an onshore substation.
The Secretary of State made the order under powers granted by the Electricity Act 1989, after consultation with Scottish Ministers, based on the unique circumstances of the offshore project.
The exemption applies to Scotland only, takes effect on May 7, 2025 and does not require a full impact assessment due to the anticipated lack of significant impact on the public or private sectors.
Arguments For
Facilitating Renewable Energy Development: The exemption streamlines the process for connecting offshore renewable energy sources to the grid, accelerating the transition to cleaner energy.
Economic Benefits: Removing regulatory hurdles for Spiorad na Mara Limited can stimulate investment and job creation in Scotland's renewable energy sector.
Addressing Specific Circumstances: The exemption is tailored to a specific project and geography, allowing for flexible application of regulations to suit unique circumstances.
Legal Basis: The Order is made under the powers explicitly granted by section 5(1) of the Electricity Act 1989, demonstrating legal compliance.
Arguments Against
Potential for Regulatory Arbitrage: Granting exemptions could create a precedent, potentially undermining the broader regulatory framework for electricity transmission.
Lack of Transparency: The decision-making process around individual exemptions might not be sufficiently transparent or accountable to the public.
Unforeseen Consequences: The long-term implications of granting an indefinite exemption to a single company are difficult to fully assess.
Alternative Approaches: Alternative regulatory mechanisms, such as streamlined licensing procedures, could achieve similar outcomes while maintaining a consistent regulatory environment.
- Citation, commencement, extent and application (1) This Order may be cited as the Electricity (Individual Exemption from the Requirement for a Transmission Licence) (Spiorad na Mara) (Scotland) Order 2025 and comes into force on 7th May 2025. (2) This Order extends to England and Wales and Scotland. (3) This Order applies in relation to Scotland only.
This section provides the order's name, effective date, and geographical scope.
The order is titled the Electricity (Individual Exemption from the Requirement for a Transmission Licence) (Spiorad na Mara) (Scotland) Order 2025 and will be in effect from May 7th, 2025.
While it legally extends to England and Wales, only Scotland will be affected by its provisions.
- Exemption from section 4(1)(b) of the Electricity Act 1989 (1) The Secretary of State grants exemption from section 4(1)(b) of the Act (prohibition on unlicensed transmission of electricity for supply) to Spiorad na Mara Limited in respect of transmission taking place over the transmission system connecting the Spiorad na Mara offshore generating station with the onshore substation located, or to be located, near the northern coast of the Isle of Lewis. (2) The exemption in paragraph (1) is granted indefinitely, starting with the date on which Spiorad na Mara offshore generating station first generates electricity. (3) In this article— “the Act” means the Electricity Act 1989; “Spiorad na Mara Limited” means Spiorad na Mara Limited, a company registered in Scotland with company number SC717716; “Spiorad na Mara offshore generating station” means the generating station located, or to be located, between 5 and 13 kilometres off the coast of the Isle of Lewis in the Atlantic Ocean, with its central point being approximately Latitude 58°24′29.113″ and Longitude -6°47′16.379″.
This section details the specific exemption granted.
The Secretary of State exempts Spiorad na Mara Limited from the requirement to have a transmission license for electricity transfer between its offshore generating station and a mainland substation.
This exemption is effective indefinitely, beginning when the offshore station commences operation.
The section also defines key terms, including the relevant act, the company, and the precise location of the offshore generating station.
Explanatory Note (This note is not part of the Order) This Order grants exemption from the requirement to hold an electricity transmission licence. Section 4(1)(b) of the Electricity Act 1989 (c. 29) prohibits the transmission of electricity for supply without a licence. The Secretary of State, exercising the powers under section 5(1) of that Act, grants an indefinite exemption from the requirement to hold a transmission licence to Spiorad na Mara Limited in respect of transmission of electricity from the Spiorad na Mara offshore generating station to the onshore substation located on the northern coast of the Isle of Lewis. A full impact assessment has not been published for this instrument because no, or no significant, impact on the private, voluntary or public sector is foreseen.
The Explanatory Note clarifies the Order's purpose and provides context.
It reiterates the granted exemption from the Electricity Act 1989's requirement for a transmission license, specifically for Spiorad na Mara Limited's electricity transmission project.
It also indicates that a full impact assessment was not deemed necessary due to the anticipated minimal effects on various sectors.
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