Uncertainty over Contracts for Difference offshore wind subsidies could leave the UK government’s ambitions for the industry “pitched too low”, the Scottish energy minister warned today.
Paul Wheelhouse (pictured), who was speaking at Global Offshore Wind 2016 in Manchester, said the Scottish government supports the UK’s desire to reduce costs and it was committed to working with it.
However, “changes need to be planned in a gradual way that provide long-term vision for the renewables industry”, he said.
The new minister, who recently took over from Fergus Ewing, said the Scottish government needs to know the details of the plan and is awaiting further details from DECC “in relation to the parameters of the next allocation round prior to the auction window opening”.
He said: “This continuing uncertainty does have the potential, we feel, to undermine the UK’s reputation with investors and risks wider harmful consequences for investment far beyond the renewables sector.
“It is, therefore, crucial, and I say this in the genuine spirit of trying to be helpful, that the UK government provides the details of the plan as soon as possible.”
He told delegates that to do so would be in the UK government’s interest, Scotland’s interest and the industry’s interest.
“The absence of clarity can only damage investment in Scotland and the UK and therefore diminish opportunities for our supply chain and businesses.”
The main challenge preventing a vibrant supply chain in Scotland and across the UK was the uncertainty existing with the CfD process, Wheelhouse said. And it delayed investment and hindered the ability for the UK to compete with the more established supply chains on the continent.
“What is important is the size and boldness of our ambitions, but this could be lost if the UK government’s ambitions for offshore wind are pitched too low; too low to build sufficient capacity in the sector, too low to create a viable supply chain and for that capacity to be made available industry must have far greater certainty over the financial context in which it is spending.”
Image: Scottish Government
Scots call for offshore clarity
New energy minister says CfD uncertainty is potentially ‘harmful'
By EBS