Changes to UK renewable energy subsidies and uncertainty about future support have affected the confidence of investors in supporting new generating capacity, according to a Scottish Affairs Committee report.
The report, released later today, said the removal of the onshore wind subsidy “without consultation with the industry or Scottish government is considered particularly troubling”.
Trade body Scottish Renewables told the committee that early closure of the Renewables Obligation to onshore wind will cost Scotland up to £3bn lost investment and put 5400 jobs at risk.
It added that the lack of clarity about renewables policy has exacerbated long-standing concerns in Scotland surrounding transmission costs.
“Renewable plants, most often located in rural areas or on the Scottish Islands, face inadequate grid connections and high transmission charges to reach the urban areas where electricity is most needed,” the committee said.
It called on Ofgem to look into levelling connection costs across the UK and the government in Westminster to take action to support the improvement of infrastructure between the Scottish Islands and the mainland.
Renewable energy in Scotland has experienced significant growth in recent years, with an estimated 21,000 people are now employed in the Scottish sector, the report said.
Committee chair Pete Wishart said: “This report considers several policy changes the UK government has made to support for renewables – 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 – which we found have weakened investor confidence in the renewable sector, and put at risk opportunities for future growth.
“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.”
Image: 3 Whitehall Place (DECC)
Scots need clean energy clarity
Removal of onshore subsidy is ‘particularly troubling' says committee
By EBS