£1.3bn of Scottish energy renewable investment held up by UK Govt Brexit indecision

saltire-flagAt least £1.3 billion of investment in ‘shovel ready’ Scottish energy projects is being put at risk by indecision by the UK Government over major funding decisions according to the Scot-Govt.

Scottish Deputy First Minister John Swinney and leaders of three Scottish Island Councils have written to Greg Clark, the UK Business and Energy Minister, to voice concern about the effects of continued uncertainty on support for large-scale renewable energy projects on the Scottish Islands.

Delays in announcing which technologies will be supported in the next round of auctions that support the renewable energy sector are putting at risk existing investments made in developing renewable energy projects which would bring considerable socio-economic benefits for the Islands’ communities.

An independent report, commissioned by the Scottish Government, estimated that Scotland’s island economies could benefits from up to £725 million over the next 25 years from renewables projects.

Swinney and Fergus Ewing, the former Scottish Energy Minister and now Minister for Rural Affairs, met council leaders from Orkney, Shetland and Comhairle nan Eilean Siar, at the Convention for the Highlands and Islands in Inverness

John Swinney, MSP
John Swinney, MSP

Swinney said: “In the wake of the EU referendum, the UK can ill afford to miss the opportunity to unlock £1.3 billion of investments offered by the shovel ready anchor projects on the Western Isles and Shetland and the associated benefits for the UK-wide supply chain.

“We urge that this period of uncertainty is brought to a swift conclusion and that the strong economic case for Remote Island Wind, developed in partnership between the UK Government and the wider Scottish Islands Delivery Forum membership, is duly acknowledged in a decision that allows island projects to compete in the next allocation round.

“We would urge the new Secretary of State to take immediate action to ensure that the UK Government re-engages with this process and delivers on the commitments to harness the renewables potential of the islands.”

Pixie Energy

Pixie logo Pixie Energy is an incubator and a facilitator of strategic research and project work, focusing on energy regulation, policy and markets at the local and national level. Find out more about Pixie Energy here.

Local Energy Matters: Scotland

Local Energy Matters: Scotland is a free-to-download brochure with a focus on energy tariffs in the two Scottish electricity distribution regions, as well news on local energy and low-carbon schemes.

Previous editions can be download here.

Scottish energy market overview

You can read an overview of the Scottish energy market here.

Scottish Government energy feed