Ahead of the Chancellor’s Autumn Statement, industry body Scottish Renewables has set out actions the UK Government must take if the sector is to maintain its position as a world leader.
In a letter to Chancellor Jeremy Hunt the body highlights the “need for an urgent strategy” to address investor confidence and attractiveness, as well as action on a number of specific renewable energy technologies including offshore wind and hydropower.
In a letter to the Chancellor, Scottish Renewables Chief Executive Claire Mack, wrote: “These increased development costs are keenly felt in Scotland where offshore wind farms are 20% more expensive than those in English waters due to outdated Transmission Network Use of System charges, with catastrophic future projections announced this month by the Electricity Systems Operator.
“Our industry is increasingly under threat from international competition for the supply chains, financing and skilled workers needed to build a net zero economy.
“Put simply, we cannot afford to forfeit the UK’s global advantage as an early mover in the race for clean, cheap energy.”
The Scottish Renewables’ letter said changes to the Transmission Network Use of System (TNUoS) mechanism, through which generators pay to use the electricity network, are essential, with Scottish offshore wind farms penalised to the tune of tens of millions of pounds every year relative to projects in southern England.
The Electricity Generator Levy – brought in as a levy on profits made when electricity prices are high, but applied indiscriminately to companies which were not making those profits – must also be reformed.
Scottish Renewables also recommends spending to upgrade Scotland’s ports to ensure they are ready for the coming offshore wind boom and enacting a long-awaited financial mechanism to allow the development of pumped-storage hydropower in Scotland which could create almost 15,000 jobs and generate up to £5.8bn for the UK economy by 2035.