Iberdrola to Install Alstom’s Tidal Energy Systems in Scotland

Iberdrola SA (IBE)’s U.K. unit agreed to install tidal-energy turbines developed by Alstom SA (ALO) off the west coast of Scotland.

ScottishPower Renewables Ltd., a unit of Spain’s largest utility, plans to use four turbines supplied by Alstom at a site between the islands of Islay and Jura, it said today in a statement on its website. The machines will be set up alongside four turbines developed by Andritz Hydro Hammerfest, the company said, with the site reaching a capacity of about 10 megawatts.

Scotland offers one of the highest subsidies in the world for projects that harness the power of the waves and tides. Its waters are estimated to have as much as a quarter of Europe’s tidal resources and a 10th of its wave resources. As yet there are no commercial-scale projects in operation.

“Islay will now permit the two leading tidal power technologies to be proven side by side and to take them both to the point of commercialization,” Simon Christian, U.K. managing director at ScottishPower Renewables, said in the statement.

Installation is expected to begin in late 2015. The demonstration project should be a “launch pad” for future large-scale sites around Scotland, according to the statement.

Alstom’s technology was initially developed by Tidal Generation Ltd., owned by Rolls-Royce Holdings Plc. (RR/) Alstom bought the unit from Rolls-Royce in September 2012.

To contact the reporter on this story: Louise Downing in London at ldowning4@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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