UK government rejects £150m Scottish energy plan

by Stephen Hurrell. Published Mon 20 Jul 2009 11:29, Last updated: 2009-07-20
Research into renewable energy sources would benefit from the grant
Research into renewable energy sources would benefit from the grant

A major report has confirmed that renewable energy can power Scotland’s energy revolution and create enough power to export additional electricity resources.

However, the news today that the UK government has rejected Scottish attempts to access a £150 million renewable energy fund will be a major blow to the ambitious findings of the report.

'The Power of Scotland Renewed', compiled by energy analyst Garard Hassan on behalf of NGOs including Friends of the Earth Scotland, RSPB Scotland, World Development movement and WWF Scotland, says Scotland could meet nearly 70 percent of domestic electricity use by 2030 from renewables and has the potential to meet over 140 percent of domestic demand, allowing export of surplus resources.

The report also confirms that there is no need for new nuclear power stations in Scotland, but currently the money needed for investment in renewable energy is not available.

Treasury Minister Liam Byrne told Finance Secretary John Swinney he cannot “agree a further increase” in the Scottish budget, which would open up access to the Fossil Fuel Account.

Ports infrastructure, manufacturing plants, research programmes and skills are among the areas where the Scottish National Party say the additional money could be spent. The SNP are angered at the decision to block access to the fund.

Mr Swinney said: “The fossil fuel levy is now worth some £150 million, and currently languishes in an Ofgem bank account.

“By law, it can only be accessed by Scottish ministers for the purpose of supporting the development of renewable energy in Scotland.

“We have written several times to the Treasury, who stubbornly insist that if Scottish ministers draw down this money, a corresponding reduction would be made in the Scottish block grant.

“That is clearly not in the best interests of this country, nor of the UK as a whole, given our shared commitment to the EU goals of carbon reduction and renewable energy generation.”

SNP MSP Shirley-Anne Somerville, a member of the Scottish Parliament’s Climate Change Committee, welcomed the findings of the report but warned investment was needed if Scotland was to reach the climate change targets.

“It is unfortunate that £150 million of potential investment in Scotland’s renewables and energy industry is currently sat in a UK government bank account through a quirk of Treasury accounting. It is time that money was released and invested in Scotland’s energy future.

“While we are on target to surpass our ambitious renewable energy targets of 31 percent of electricity from renewables by 2011 to build a bright and green future we must ensure we invest properly.”






Comments about UK government rejects £150m Scottish energy plan

There are no comments yet on UK government rejects £150m Scottish energy plan. Be the first to leave one, enter your thoughts below.

Post a comment






Alert me of replies

You have characters left


 














Powered by Click Creative
© All Rights Reserved.