Plans for two onshore wind farms on the Shetland Islands have moved 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.