Scottish hydro sector facing cliff edge

An industry expert has advised that Scotland’s hydro sector has until the end of the year before Government cuts make “further development unlikely.” 65 MW of small scale hydro has been installed in the UK over the last five years. This has the ability to power approximately 44,000 homes. For future projects to continue to be financially viable, Government ministers need to take steps to assess the industry.

The warning comes ahead of Scotland’s largest hydro conference due next month.

A reduction in support from the Feed-In Tariff has been described as “horrendously steep” by the expert. Developers are pushing through to get early approval before any changes take effect.

Joss Blamire, Senior Policy Manager at Scottish Renewables, said: “Hydro in Scotland is currently booming, but recent cuts, along with more set to come by the end of this year, have the potential to make further development unlikely. Instead of gradual, considered and measured reductions to support, we are facing a horrendously steep drop-off. Feedback directly from our industry partners suggests many projects may not survive.” “We are currently in the boom period of an entirely predictable boom-and-bust scenario, and unless something is done soon that bust could end Scotland’s hydro ambitions before they’ve had a chance to deliver their full clean energy, jobs and investment potential.”??The Hydro conference has a hectic schedule to include a number of speakers. Speakers include Richard Round, CEO of developer Green Highland Renewables; Mary Drury, UK Hydro Development and Construction Manager at RWE Innogy UK; Jamie Corser, Business Development Manager at construction firm RJ McLeod and Kenny Hunter, Business Development Manager at MEG Renewables.

Blamire continued:

“The Hydro Conference is always one of our best-attended annual events, and with the FiT degression looming this year’s will be no exception.??“Hydro has a proud history in Scotland, and with the right support it can have a bright future. At the moment, though, the storm clouds are gathering, and we’ll be pressing hard to make sure the outcome of this unsettled period is the right one.”