The European Commission (EC) has confirmed it will not prevent onshore wind energy projects in the Northern and Western Isles to compete in the next Contracts for Difference (CfD) auction.
Last year, the UK Government announced approval for onshore wind projects in 'remote islands' to bid for CfD subsidies.
The EC's confirmation will allow developers in Orkney, Shetland and the Western Isles to compete to secure a minimum price guarantee for the electricity their projects generate.
Welcoming the announcement, Leader of Orkney Islands Council James Stockan said: "We've been advised today (09 February) by the Department for Business, Energy and Industrial Strategy that State Aid approval has been granted for ‘island wind' projects to be included in this important support scheme.
"Our Council made the strongest possible case for this, so I am delighted that this final hurdle has been overcome.
"The Westminster and Scottish Governments recognise that wind projects in Orkney, Shetland and the Western Isles have the potential to provide around 3% of UK's total energy demand.
"It was vital that projects in our islands could compete for support that would make a real difference in getting them off the ground. So I am very pleased that island wind projects, with the potential to greatly benefit our community, will have access to the same funding opportunities as offshore wind in the next auction round."
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