Expressions of interest for a tidal energy project in the Inner Sound, which lies between Caithness on the Scottish mainland and the island of Stroma, were invited today (31st March) by the UK's Crown Estate. The Inner Sound has potential for a significant commercial tidal energy project, and could increase the potential capacity in the Pentland Firth and Orkney waters to more than 1,200 MW.

The announcement was welcomed by Highlands and Islands Enterprise. Audrey MacIver, joint head of energy at Highlands and Islands Enterprise (HIE) said: "We are delighted at the speed with which The Crown Estate has re-opened the tendering process for the Inner Sound. These waters have great potential for energy generation and we look forward to working with the successful bidder to support their success and to maximise the economic benefit their development will bring to the region."

Successful bidders for the first competitive wave and tidal leasing round in the Pentland Firth and Orkney waters were announced on 16 March in Wick, Kirkwall and Edinburgh. During the leasing round process, The Crown Estate received bids for development in the Inner Sound. The preferred bidder withdrew at a late stage in the process. Given the Inner Sound’s high potential for renewable electricity generation, and the fact that it was one of the most contested areas in the leasing round, The Crown Estate expects that other parties will be interested in the area. It has therefore decided to re-tender the Inner Sound. The Crown Estate is particularly keen to receive expressions of interest in a single commercial project of 200 MW or more installed capacity, to be constructed and operating by 2020.

Should a developer be successful in the re-tendering process and secure an agreement for lease, it would be expected to develop the site and enter the statutory consenting process. The Pentland Firth and Orkney waters enabling actions fund, which comprises developers’ option fees and match funding from The Crown Estate, would also increase. For the time being, The Crown Estate has no plans to invite bids and will not consider applications for any other areas of the Pentland Firth and Orkney waters.

Commenting on the announcement, Rob Hastings, Director of the Marine Estate at The Crown Estate said: “After the successful launch of 10 wave and tidal projects in the Pentland Firth and Orkney waters, with a potential capacity of 1,200 MW, we are delighted to make the Inner Sound available for further commercial bids. A tidal project in the Inner Sound could significantly increase the local generation of marine renewable energy and further advance the wave and tidal energy industry. And an increase to the enabling actions fund would help further accelerate and reduce risks in development, through environmental survey work, for example.”

Expressions of interest in the area will be invited and companies will be invited to pre-qualify, from Monday 19th April 2010, via The Crown Estate’s e-tendering system. A web link to the e-tendering system will be given on this date. The deadline for expressions of interest and pre-qualification will be 17:00 BST on Friday 28 May 2010. The proposed area for development in the Inner Sound is pre-defined, and a map and coordinates are available on The Crown Estate website.