Energy Minister Fergus Ewing today confirmed levels of support for renewables in Scotland for the next four years – including the retention of current rates for hydro, reductions in support for onshore wind and biomass, and a proposal for higher support for offshore wind.
Announcing the proposals in a statement to Parliament, Mr Ewing said the Scottish Government’s desire was to keep Scotland’s Renewables Obligation as consistent as possible with the rest of the UK – but that there are areas where we believe that a different course of action is necessary and in Scotland’s interests.
Mr Ewing made the following announcements:
Energy Minister Fergus Ewing said:
“The results of the Renewable Obligation review I am announcing today are vital to continued investment in renewables generation across Scotland, and will enhance still further our competitive advantage in this area.
“Over the last decade the Renewables Obligation has helped to almost triple renewable output in Scotland, and attract around £2.8 billion of investment since 2009, according to industry figures. This increase has protected Scotland’s environment and Scottish consumers. There are presently around 11,000 jobs in the renewables sector in Scotland and with successful development of our resources that will increase massively. Estimates suggest that the RO currently costs domestic consumers between £15-£20 a year, rising to £50 per year by 2017. But renewable energy can protect consumers from higher costs – estimates suggest that bills in 2020 will be £94 cheaper with renewables and energy efficiency policies than without.
“We consulted extensively before this review, and we have listened. Scotland has a proud and world renowned heritage in hydro power generation, but future developments will be on a smaller scale and more challenging. That is why we are retaining the current level of support.
“Scotland has huge offshore wind potential, but a lot of that resource is in far greater water depths than elsewhere in the UK, which is challenging and costly to exploit. That’s why I have announced our intention to consult upon and introduce a new band for innovative ways to deploy offshore wind in Scotland’s deeper and more challenging waters.
“Onshore wind is already leading the way for renewable energy, and has helped us make the case for the grid upgrades which will be so important as we move forward to offshore wind, wave and tidal. The announced cut in support recognises the success and reduced costs this sector is enjoying – but we have given the industry certainty, unlike the UK government, by setting our rate until 2017.
“Given the Scottish Government’s concerns over competition for a finite supply of wood and the responses to our consultation which reflected that, it is right that we are removing support for those biomass stations over 10 MW that do not provide good quality combined heat and power.
“In other areas, we will remain consistent with the rest of the UK – and for that reason we will shortly consult in the same terms as the UK Government on issues such as solar PV banding, additional cost controls for biomass, and the future of support for certain types for small scale generation.
“Scotland has astounding green energy potential and vast natural resources, and we have a responsibility to make sure our nation seizes this opportunity to create tens of thousands of new jobs and secure billions of pounds of investment in our economy. Today’s announcement will allow us to continue along that path.”
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Press release, September 13, 2012; Image: RWE