SCOTTISHPOWER has completed development work on a windfarm in the Highlands which it said was the first it had built without the benefit of a government revenue support scheme.

The company will sell the energy generated by the Halsary windfarm in Caithness to Tesco under a Power Purchase Agreement.

This will underpin the returns that ScottishPower will expect to generate on its investment, while allowing Tesco to bolster its green credentials.

ScottishPower, which is owned by Spain’s Iberdrola, said the 15- turbine windfarm in Caithness is generating enough clean energy for the equivalent of almost 20,000 homes. It will help power Tesco’s stores and operations across the country and bring more green energy on to the grid.

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Lindsay McQuade, chief executive of ScottishPower Renewables, said onshore wind is the cheapest form of generating electricity in the UK, adding: “It’s great to see there’s a growing market for these types of partnerships.”

Jason Tarry, chief executive UK and Republic of Ireland at Tesco, said: “Long-term renewable energy agreements are crucial to securing Tesco’s future energy needs and meeting our net zero commitments.”

ScottishPower and Tesco announced plans for Halsary and the related PPA in 2019.

Halsary is the first onshore windfarm ScottishPower has completed in Scotland in the last five years.

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The group bid for offshore windfarm licences in the ScotWind round, which generated strong interest.