Overview. Tangy III Wind Farm Proposal. SSE Renewables. Site location. This exhibition

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1 Overview SSE Renewables SSE Renewables is the renewable energy division of SSE plc. It is responsible, on behalf of SSE Generation Limited, for the development and construction of SSE group s renewable energy projects across Great Britain, Ireland and continental Europe, including offshore and onshore wind farms, hydro, marine, biomass and solar projects. We are committed to helping meet Scotland's climate change targets and believe that renewable energy plays an important part in this: The Scottish Government's Climate Change Act (June 2009) sets a target of reducing greenhouse gas emissions by 42% by 2020 Also, the equivalent of 100% of Scotland's electricity consumption is to come from renewables by 2020 SSE s goal is to reduce the carbon intensity of its generation by 50% by 2020 (against a 2006 baseline).it is estimated that Scotland has 25% of Europe's wind resource and onshore wind power is the most developed of the renewable technologies, which is why we have over 22 onshore wind farms operational in the UK. As the UK's leading generator of renewable energy, we are proud to be at the forefront of developing renewables and helping to tackle climate change. Site location Reproduced from, or based upon the OS map with the sanction of HM Stationery Office Crown Copyright Reserved This exhibition Over the last year or so, SSE Renewables has been exploring the possibility of repowering and extending the existing 18.7MW Tangy wind farm, situated on the west coast of the Kintyre Peninsula in Argyll and Bute. We have undertaken initial feasibility work at the Tangy III site and believe that it is suitable for a wind farm extension, and that there would also be significant benefits to replacing the existing turbines. The purpose of this exhibition is to engage with the local community and interested parties about this proposal and the work that we have undertaken so far, and to provide the opportunity for people to raise questions, concerns, ideas or comments that can be considered as part of the development process. Members of the project team are available to answer any questions that you may have.

2 Development process CONSULTATION PROCESS FORMAL PUBLICATIONS We are here SITE SELECTION Considered a range of criteria including wind speed, access to grid connection, landscape and recreational designations, site topography and water features. A range of surveys have been underway since Spring 2012 to assess environmental suitability of the site. A meteorological mast to collect wind speed data achieved planning consent and has been operational since July PUBLIC CONSULTATION AND FIRST EXHIBITION A public exhibition is held in the local community in order to gather views on the proposal and to highlight any local issues or concerns. SECOND PUBLIC EXHIBITION A second exhibition is held in the local community to present the final design for the proposed development. CONSULTATION PERIOD A statutory consultation period is undertaken by the determining authority for the proposed development. Consultees, local community councils, interested parties and the public have the opportunity to comment on the proposed development. Comments are made to the determining authority. SCOPING A Scoping Report was submitted to statutory and non-statutory consultees on the 28th June Responses and feedback will help define the scope of the Environmental Impact Assessment (EIA). ENVIRONMENTAL STATEMENTS (ES) The findings of environmental surveys, desk based assessments and consultation will be assessed in line with the scope of the EIA to inform an optimum layout..this information will then be collated and presented within an ES, a document which accompanies the application when it is submitted to the determining authority. SUBMISSION OF APPLICATION The application and ES will be submitted to the determining authority and copies will be sent to consultees, including the local community councils. This information will also be made available for public viewing by the determining authority. REVIEW OF PROPOSALS BY DETERMINING AUTHORITY The application package is reviewed by the determining authority and statutory consultees with additional information being requested if required. The proposal is then assessed against national and local planning policy, energy policy and consultee responses (including comments from the local community) to inform a decision as to whether consent should be granted. SCOPING REPORT PLANNING APPLICATION AND ENVIRONMENTAL STATEMENT (ES) FURTHER INFORMATION (IF REQUESTED) DETERMINATION OF APPLICATION At this stage, generation capacity of the proposed development could be expected to be over 50MW, in which case an application for consent would be submitted to the Scottish Government under Section 36 of the Electricity Act (1989). Should the proposal fall below 50MW, a planning application would be submitted to Argyll and Bute Council under the Town and Country Planning (Scotland) Act 1997.

3 Working with the community Our approach Throughout the life of our projects, we aim to work positively with the local community and keep people informed about what we are doing. This is particularly important when we are developing a proposal and want to understand what the community thinks about our plans. We endeavour to take the time to discuss proposals with the local community councils, encourage engagement from the wider community and listen to the feedback, addressing as far as possible any questions, issues or concerns raised. During construction, we seek to work closely with the local community to ensure that our work has as little impact as possible on the lives of those living and working in the area. SSE Open4Business Highlands and Islands portal To contribute to the economic well-being of the Highlands and Islands community (under which Argyll and Bute is considered) SSE has developed the SSE Open4Business Highlands and Islands web portal. This site will facilitate trade and engagement between SSE and local suppliers and service providers, providing a platform for SSE to promote any opportunities originating in the region. For more information, and for details of how you or your business might benefit, please speak to one of our team and/or come along to our event in October. Tangy Wind Farm Community investment funds In recognition of the role that communities play in hosting wind farms, SSE establish community funds to support local projects over the operational life of our schemes. As part of a commitment to best practice, in January 2012, SSE launched a new community investment package which is offered, without exception, for all new and redeveloped onshore wind farms in Scotland. This package provides a fund of 5,000 per megawatt of installed capacity for every year the wind farm is operational. This is shared into two funds of 2,500 per megawatt each: one ring-fenced for local communities for projects such as skills development and training; social enterprise; amenity; educational; charitable; or environmental purposes and one set aside for a wider regional fund in support of projects which promote skills development, community energy development or improve the built and natural environment. Wind Towers (Scotland) Ltd, Machrihanish In 2013, SSE increased its shareholding in Wind Towers (Scotland) Ltd to just over 80%. Our commitment in Wind Towers and the local area ensures that this business and investment stays within Scotland and specifically Argyll & Bute. It is our intention to procure the towers for all SSE s future Scottish wind farms from Wind Towers. Two apprentices were appointed at the factory in November last year, one in welding and one in electrical maintenance. Recently, the factory has also taken on nine new welders from the local area and is currently recruiting for another six surface treatment operatives. Today, there are over 130 employees at the factory. Whilst community investment is associated with a consented project, it does not form part of the application submission and cannot be considered in the determination of the application by the determining authority. Use of local services Throughout the development and construction phase, and from time to time afterwards, teams will be brought in for maintenance or operational tasks. They are likely to rely on local services for accommodation, food and supplies. If the proposal is successful in being granted permission, prior to the construction of a project, local companies would be given the opportunity to offer their services. This usually takes the form of an open day which is advertised locally for businesses to attend, talk to the project team, and register their interest. SSE aim to host one of these events in October in Tarbert, in connection with the consented Cour wind farm located approximately 30km north of Campbeltown. Please let Pauline Allison know if you are interested in receiving information about this event. During the life time of a project, there are also likely to be longer term roles required to help manage the site, including operations and maintenance of the wind turbines and associated plant, fencing and drainage work, road repairs, and office maintenance services. Tower Work at Machrihanish Wind Towers (Scotland) Ltd

4 Next steps What happens next? The EIA baseline surveys will continue over the summer and help further develop the design layouts which will seek to avoid as many of the physical, environmental and technical constraints as possible. Once the surveys are complete and the final design established a second exhibition will be held to present the results and final design to the local community. We will review the comments received during the consultation period and consider these in relation to the proposed development. How do Icomment on the proposals? We are keen to receive comments and views from the local community and interested parties on the indicative proposals outlined. Please also take the time at the exhibition to speak to our project team and raise any questions or concerns that you may have about the proposal. Comments can be submitted as follows: At the exhibition the box provided - complete a comments form and place it in By post - complete a comments form and post it to our Liaison Manager (details opposite) By - complete acomments form and it to our Liaison Manager (details opposite) Comments forms and information can be downloaded from the project website (details opposite) or posted out to you by our Liaison Manager, upon request. Please make your comments as specific as possible in order to help us assess them in relation to the proposals. The closing date for comments is Tuesday, 24 September Achany Wind Farm, March 2009 Contact details for the project Liaison Manager is as follows: Tangy III wind farm proposal Pauline Allison SSE Renewables 7th Floor 1 Waterloo Street Glasgow, G2 6AY pauline.allison@sse.com / Will there be a further opportunity to comment on the proposals? We will hold a second public exhibition, prior to submission of the application, to update the local community and interested parties on the final proposed development. Once the application is submitted, there will be a further opportunity to comment on the proposed development by submitting comments to the determining authority as part of the statutory consultation period for the application. of RePower Looking up tower at Tangy Wind Farm Photo courtesy

5 The proposed development Tangy Wind Farm Background Tangy wind farm is situated on the west coast of the Kintyre Peninsula in Argyll and Bute, Scotland. Tangy began generating electricity in 2004 and comprises 22 turbines, each with 0.85MW capacity. The existing consent for the site expires in August 2022, when under the current conditions, the wind farm would either be decommissioned or an application submitted for continued use. From a development perspective the existing turbines on Tangy are therefore approaching the end of their operational life and there is the need to consider potential decommissioning / re-commissioning whilst also an opportunity to consider increasing generating output of the site. Turbine technology has advanced significantly since Tangy became operational, with early turbine models having been superseded by much more efficient machines. SSE Renewables therefore wishes to have the wind farm re-consented, replacing existing turbines and upgrading the site this is described as repowering. Sunset at Tangy Wind Farm Tangy Wind Farm Timeline WE ARE HERE END FEB 2002 AUG AUG yrs Tangy III Development Proposal (Submission timing TBC) Tangy III Constructed (Estimate if consented) Repower Repowering the site would significantly increase the efficiency of the current wind farm through replacement of the existing turbines. Available modern machines are more efficient and have significantly greater megawatt capacity than those currently installed. However, these machines have different spacing requirements, and therefore the Tangy III proposal would consider a materially different layout to that of the existing wind farm. Repowering Tangy wind farm would require decommissioning of the existing turbines. This would involve: dismantling and removal of 22 existing turbines removal of turbine foundations to below ground level and restoration of ground at these locations In order to maximise material recovery from the existing wind farm, SSE Renewables would endeavour to re-use, upgrade or alter the following infrastructure where it is practicable to do so: access tracks electrical infrastructure areas of hardstanding adjacent to each wind turbine The Tangy III wind farm proposal is being considered so as to utilise the important resource at Tangy of a high wind speed over coastal moorland, combined with the benefits of using an existing wind farm site and associated existing infrastructure. More detail as to our expectations and anticipated requirements for Tangy III wind farm can be found on the next board. potential relocation and reconnection of the existing substation

6 Tangy III Wind Farm Proposal The proposed development Tangy III Wind Farm Proposal The existing Tangy wind farm was selected following a search of potential wind farm sites throughout Scotland by SSE Renewables. In addition to meeting the basic search criteria for wind farm development, landowner discussions have taken place regarding the opportunity to extend the existing wind farm. Site Search Area Indicative Site Boundary Repowering the site would significantly increase the efficiency of the current wind farm through replacement of the existing turbines. The area under consideration is approximately 538 hectares (ha), comprising the 247ha area of the existing wind farm plus approximately 291ha of an area of commercial forestry to the north. Progression of the conceptual design for the proposed development is at an early stage and the proposed installed capacity is currently unknown. It is considered that the site has the potential to accommodate a wind farm with an installed capacity of over 50MW. The turbines currently being considered for the proposed development have a maximum blade tip height of 130m. Components The main elements required to repower and extend Tangy wind farm would be expected to include: Forestry removal Wind turbines and associated infrastructure Crane hardstandings On-site access tracks and passing bays Meteorological masts Control building and electrical substation Site Boundary Any temporary works would include construction compounds, borrow pits (from which construction aggregates would be extracted) and laydown areas for temporary storage of turbine components. Grid connection Power generated by the turbines would be transferred via underground cables to the on-site substation. The connection to the national grid, out-with the site, falls under a separate application process. Grid connection studies would be carried out by the network provider to determine the most appropriate method for onward transmission of the electricity generated from the proposed wind farm. Access It is intended that site access would include delivery of components from Machrihanish Wind Towers (Scotland) Ltd and Campbeltown Harbour, heading west when joining the A83, and turning east onto the farm access track at Drum Farm, proceeding northwards on the Tangy Mill Road to the junction just past High Ballevain. The route selected for access to the site entrance is anticipated to be from High Ballevain, heading east towards Breakachy and Tangy. Widening and upgrading of the route would be required to accommodate the transport of components to site. Proposed works will be informed following completion of a preliminary transport assessment, and would be expected to include: temporary removal of fence lines, walls and gates; and provision of additional passing places where deemed necessary. Cow at Tangy Wind Farm Current stage A 'Scoping Report' was submitted to the Scottish Government and other statutory and non-statutory consultees, including local community councils, on the 28th June The report helps initiate further consultation and refine the full scope of the environmental and technical work required to complete the EIA element of the application process.

7 Environmental considerations The Environmental Impact Assessment (EIA) We are currently preparing to undertake an EIA for the proposed Tangy III wind farm. This is a process which identifies and assesses the likely significant environmental effects of the development and will inform the design from an environmental perspective. The process involves desk studies and site visits, baseline surveys, technical assessments and consultation with statutory and non-statutory consultees. Any significant environmental effects and appropriate measures to avoid, reduce or remedy them will be identified. We will report the findings in an Environmental Statement (ES) which we will submit, together with the application, to the determining authority. The application and ES will be made available to the public at the time of submission. We will use the information gathered from these environmental surveys to inform the design and layout of the proposed wind farm. The surveys will assess a wide range of environmental factors, including those listed below. Ornithology Bird studies have been ongoing within the vicinity of the proposed development since Spring 2012 and will be completed in early Different surveys have been undertaken such as vantage point watches, walkovers and breeding bird surveys. Initial desk-study and field work suggests that important bird species expected within the site area are likely to include greenland white-fronted geese, greylag geese, peregrine falcon, merlin, hen harrier, short-eared owl and herring gull. We are working closely with our ornithological specialists to identify and avoid areas of particular interest to these species. Ecology Ecology surveys will be completed in Autumn 2013 and will cover the following areas: Vegetation and habitat Protected species such as otter, badger, wildcat, bats, water vole, pine marten and red squirrel Terrestrial and aquatic invertebrates Atlantic salmon Freshwater pearl mussel Amphibians and reptiles Greylag Goose Landscape and Visual The landscape and visual assessment is a significant element of the EIA process. Details are provided on a separate board. Other Environmental Aspects We will also assess the potential effects of the development on other environmental topics including the following: Cultural heritage Hydrology, hydrogeology and geology Transport and access Tourism and recreation Noise Otters

8 Landscape and visual assessment Our landscape and visual assessment will help us identify any significant effects on the landscape and views of the proposed Tangy III wind farm. The Zone of Theoretical Visibility (ZTV), shown below, illustrates the indicative theoretical visibility of the proposed turbine layout based on bare ground (i.e. no screening effects such as vegetation or buildings) for up to 35km from the site. Following site layout design, we will be able to create a computer generated visualisation of how the wind farm may look from certain viewpoints, such as residential properties, local designations and nearby communities. Our computer software will enable us to generate a 3D model of the wind farm from viewpoints as far away as 35km. This will also be based on bare ground i.e. with no screening effects such as vegetation or buildings. Although we don t have the required layout information to do this today, we will have the model available for interactive viewing at the second public exhibition. Photomontages and other visualisations showing the final turbine layout will be developed as part of the Environmental Statement. Tangy III Zone of Theoretical Visibility (ZTV) Potential Turbine Visibility Indicative Site Boundary Note: Showing a 35km radius and based on maximum turbine tip height of 130m