Plans for two onshore wind farms on the Shetland Islands which would help meet Scotland's targets for renewable energy production are a step closer to being delivered after receiving long-term Government support.

Clean energy specialists Peel NRE has been successful in two bids in the Department for Business, Energy and Industrial Strategy's (BEIS) Contracts for Difference (CfD) scheme; one for its Mossy Hill wind farm near Lerwick and the other for Beaw Field wind farm in Yell.

Proposals for the two consented wind farms represent a £150m investment by Peel NRE to help achieve Scotland's aim to produce 50% of energy from renewable sources by 2030.

CfD is a Government initiative to support low-carbon electricity generation, providing long-term price certainty to investors. The auction result enables delivery of secure, low carbon and low-cost energy for the UK, helping to alleviate unprecedented high energy bills.


Peel NRE's successful bids for Beaw Field and Mossy Hill wind farms bring forward the potential commercialisation of the developments on The Shetlands.

The 72MW Beaw Field wind farm received planning permission in 2017 – and will have the capacity to power around 80,000 homes a year.

Proposals for a 48MW capacity, 12-turbine wind farm at Mossy Hill were granted planning permission in 2019. This would generate enough electricity for around 50,000 homes each year.

Both schemes are due to be operational by 2026.

Peel NRE was able to enter the CfD auction this summer following Ofgem's approval of a subsea high voltage direct current (HDVC) interconnector between Shetland and Mainland Scotland.

Rob Tate, Development Director for Renewables at Peel NRE said: "This Government support is excellent news to help secure the future of cleaner energy generation in Scotland and it moves us closer to the delivery stage of our two wind farms in The Shetlands.

"It also supports the UK's wider journey towards net zero and is a step in the right direction towards addressing the global energy crisis and rising costs.

"I'm pleased that both of our projects have been recognised and that we're able to play our part in providing the infrastructure needed to scale up the country's renewable efforts. This result is the culmination of eight years of work and investment from Peel NRE in Shetland. It's been a huge team effort to get the bids over the line and I'd like to thank everyone for their hard work in putting the best submissions forward."