ScottishPower Ltd. (ScottishPower) is looking at plan to build a wind farm off the coast of Argyll that could generate enough electricity to power one million homes. The company will be announced as winner of one of 10 "exclusivity agreements" issued by the Crown Estate, which owns the seabed. The company's subsidiary, ScottishPower Renewables, will begin a year-long feasibility study and consultation after winning the right to develop the site.

If all 10 wind farms are built, announced under the exclusivity agreements, they could produce 6.4 gigawatts of renewable energy in a year.

The exclusivity contracts are dispersed around the west and east coasts of Scotland and, if all 10 wind farms are built, could ultimately see 6.4 gigawatts of renewable energy generated a year.

Keith Anderson, director of ScottishPower Renewables said: Offshore wind power has massive potential, and the UK Government has already outlined ambitions to generate up to 33,000 MW of power off the UK coastline.

Scotland has the best onshore wind resources in Europe, and now it is taking its first steps towards harnessing its offshore potential, which will play a major role in helping to achieve renewable energy targets.

Today’s announcement is the first step on a long but important journey, and over the next 12 months we will carry out detailed studies of the site and consult widely with stakeholders to help shape any future scheme.

The Argyll wind farm project is among the first to be offered for offshore wind farm developments in Scotland. The Crown Estate had initially requested expressions of interest from companies wishing to be considered for developing commercial-scale wind farms within Scottish territorial waters in May 2008.

Sites in the west will be located in the Irish sea and Solway Firth, while an equal number are expected to be located between Wick in the north to the Berwickshire coast to the south.

The west coast sites have relatively mild winds also they have the advantage of easier connection to the national grid, which will be achieved by building undersea cables to bring the power ashore.

The Scottish government has set a target to meet 50% of electricity demand from renewables by 2020 and an interim target of 31% by 2011.

Rob Hastings, of the Crown Estate, said: The award of 10 exclusivity agreements is excellent news for the companies involved, the Crown Estate and for Scotland as a whole. We look forward to working with the companies on the development of these sites and the realization of the enormous potential that these sites have to offer.

As the owner of the seabed, the Crown Estate will earn up to 2% of the electricity generated.