Scotland's First Minister Alex Salmond is threatening a split with the UK Government over subsidy support plans for the onshore wind industry.
In a letter to Energy Secretary Ed Davey, Mr Salmond warns he will publish the results of the consultation on the level of support which will be available under the Renewable Obligation (RO) scheme.
The First Minister argues that he has seen no evidence to suggest that the level of support should be cut by more than 10% and has announced plans to go it alone and provide the onshore wind industry in Scotland with 0.9 ROCs regardless of a decision from Westminster.
Historically, levels of support for wind energy in Scotland have been set at the same level as those in the rest of the UK.
If the Scottish Government decides to push for setting its own, improved subsidy rate it will create a two-tier renewable energy policy in the UK but it argues it can no longer wait for a deferred decision from DECC on details of the RO review.
First Minister Alex Salmond said: "Across Europe and around the world, governments, citizens and industry are working to develop a low carbon economy, including big increases in clean energy generation – protecting the environment and creating jobs in the process. The binding targets to which the UK and Scottish Governments have each signed up mean that renewables capacity and investment in Scotland is in the interest of communities across these islands.
"The continuing uncertainty surrounding the outcome of the Renewables Obligation reviews upon which both Governments have consulted risks undermining significantly our ability to meet our shared renewable energy aims.
"DECC's announcement this week to delay its ROC review decision has caused real anxiety to stakeholders and developers, especially in the light of recent press reports that the UK Government is considering even lower onshore wind support levels than the 10 per cent reduction proposed in the consultation.
"This wholly unnecessary uncertainty is jeopardising future investment – the CBI spoke last Wednesday of millions of pounds of investment now at risk.
"That is why I wish to make clear that the Scottish Government intends to amend the onshore wind ROC band to 0.9 with effect from April 2013, in line with all available evidence.
"We will publish our full consultation response shortly, but the renewable industry requires and deserves a clear statement of intent."
Campaign group WWF said that the news that Scotland's First Minister had confirmed the level of support the Scottish Government plans to offer the onshore wind sector stood in “stark contrast” to the “political games and infighting” in the Westminster Coalition.
David Nussbaum, Chief Executive of WWF-UK, said "Alex Salmond has clearly lost patience with the political games and infighting in the Westminster Coalition and decided that, in Scotland, certainty for investors and relying on the evidence base will take precedent over pandering to a particular political faction favoured by the Chancellor.
"The Scottish Government has a clear and visionary goal to deliver the equivalent of 100% of Scotland's electricity from renewables by 2020, and clearly recognises that policy certainty will be good for Scotland's economy. The contrast with the Westminster government, and George Osborne's current failure to put the national interest first, could not be more stark."
Dr Richard Dixon, Director of WWF Scotland added: "The Scottish Government has shown very welcome leadership on an issue which was beginning to threaten our renewables revolution. The change in the level of support reflects the fact that the cost of onshore wind is coming down, but set at a level that will still maintain investor confidence.
“Scotland's 100% renewable target is a great example of how strong commitment to a low carbon economy builds confidence, cuts emissions and creates jobs. In the coming months we hope to see similar ambition to improve the energy efficiency of our homes.
"The Scottish Government also has the opportunity to show the same leadership on the issue of an emissions performance standard for polluting coal and gas plants, an area where the proposals from the UK Government risk undermining growth in renewables by giving the green light to a new dash for gas."
And Niall Stuart, Chief Executive of Scottish Renewables, said: “Onshore wind is the cheapest form of renewable energy that can be deployed at the scale we need today, and we want to work with government to support the industry’s growth and to make it even more competitive.
“However, the delays from UK government on announcing the new banding of financial support for onshore wind are creating huge uncertainty within the sector and concern over its future.
“The Department of Energy and Climate Change has proposed to cut support for onshore wind by ten per cent in line with expert evidence – we’ve seen nothing to contradict that proposal and it is now time for the government to make a decision so the industry can start planning for the future.
“The continued delay to the announcement of the final decision is damaging confidence and is throwing up another question over the Prime Minister’s commitment to lead the greenest government ever.
“We welcome the Scottish Government’s intention to provide 0.9 ROCs for onshore wind and we look forward to reading the details around that announcement in due course.
“The reality is we need investment in onshore wind to continue if we are to kick-start commercial scale roll out of other forms of renewables such as offshore wind and marine, and the delays to this process and the uncertainty that has created can only damage confidence to investors and developers in other sectors.”
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