UK government “weakened investor confidence” in Scottish renewables
The Scottish Affairs Committee has published a report on the renewable energy sector in Scotland. The report looks at the success of renewable capacity in Scotland. The Committee has however warned that policy changes has created uncertainty and could threaten growth in the industry.
Electricity production from sources such as wind, hydro and biomass have attracted significant investment. The growth has lead to 21,000 people being employed within the renewable sector. The removal of subsidies for onshore wind in particular with, being one of the cheapest renewable sources of electricity, without consultation has caused particular concern.
Renewable plants, especially those within rural areas, hold inadequate grid connections and high transmission charges to get to the urban areas where there is demand. The Committee has asked for Ofgem to look at leveling connection costs across the UK.
Committee Chair Pete Wishart said:
"During the course of this inquiry it has been encouraging to see how Scotland has taken to renewable energy, and now produces over a quarter of the UK’s renewable electricity. This is an important sector of Scotland’s economy, and also makes a vital contribution to meeting our commitments to tackle climate change. The sector’s future success relies on a supportive policy framework in both Westminster and Holyrood.”
“This report considers several policy changes the UK Government has made to support for renewables—early closure of the Renewables Obligation for solar and onshore wind, cutting support through Feed-in-Tariffs, and delaying the next round of Contracts for Difference—which we found have weakened investor confidence in the renewable sector, and put at risk opportunities for future growth.”
“We have urged the Government to clarify the future support which will be available to the renewable sector, and set out how they will work with the Scottish Government to develop a clear, long-term plan that will allow renewable energy to remain a central part of the energy mix.”
“Our report was produced before recent changes to the structure of Government—the abolition of the Department of Energy and Climate Change, with its responsibilities moving to a new Department for Business, Energy and Industrial Strategy—but this change indicates a troubling shift in the Government’s priorities. I hope that the Government’s response to our report will go some way to allaying these fears."