UK policy could harm Scottish renewables

Government policy changes could threaten further growth for Scotland’s renewable sector.

Concerns about recent changes to subsidies for renewable technologies have sparked calls from MPs for clarity on future support for renewables.

A new report from the Scottish Affairs Committee reveals that, to date, significant growth in the renewables sector in Scotland has been due to a supportive policy environment. However, the report warns that uncertainty about future support has affected the confidence of investors in supporting new generating capacity.

The Committee is also urging Ofgem to look into levelling transmission costs across the UK and asking government to take action to improve infrastructure between the Scottish Islands and the mainland.    

Committee chair Pete Wishart said: “During the course of this inquiry it has been encouraging to see how Scotland has taken to renewable energy… The sector’s future success relies on a supportive policy framework in both Westminster and Holyrood.

“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—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.”

The report considered several policy changes including 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.

It also highlights that the removal of subsidies for onshore wind without consultation with the industry was “particularly troubling”.

Electricity production from sources such as wind, hydro and biomass in Scotland now produces almost 30 per cent of the UK’s renewable electricity and the report estimates that 21,000 people are now employed in the Scottish renewables sector.

In response to the publication, WWF Scotland climate and energy policy officer Fabrice Leveque said: “The Scottish Affairs Committee is right to highlight that there are real concerns that UK Government decisions have created a more challenging environment for renewable energy investment.

“Despite the uncertainty created by Westminster decisions, the Scottish Government can continue to drive progress by setting a new goal to generate 50 per cent of all our energy needs, across electricity, heat & transport, from renewables by 2030.”