On Friday (24 February), the Energy and Climate Change Committee of the House of Commons, chaired by Tim Yeo MP, launched an inquiry to investigate the impact of potential Scottish independence on energy and climate change.
With timing which made conspiracy theorists and Scottish Nationalists sense a hidden agenda, the announcement came just a day after SSE energy giant said the independence poll created “uncertainty” and “additional risk” over the future of the electricity and gas industry in Scotland…
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The comments were also similar in tone to those made by Energy Minister Charles Hendry in Edinburgh last week, when he said: ”In energy we have a united ambition — Scotland as a renewable energy powerhouse of Europe. ‘We are working closely with the Scottish Government to make sure Scotland fully benefits from its resources.
”Being a United Kingdom means we can attract the large investment necessary and spread the costs. I firmly believe that Scotland’s ambitions profit from being part of the union.”
First Minister Alex Salmond has made much of the country’s green ambitions and targets for 100% renewable energy. However, he has recently become embroiled in a spat with millionaire tycoon Donald trump over plans for an offshore wind farm on the Aberdeenshire coast, while the Scottish Government has made it clear that it does not support the use of biomass for power generation and has tried to get the Westminster Government to change its policy in this area.
SSE’s comments also have echoes of those from Citygroup, which said in November last year that analysts said SNP’s two flagship policies – an independence referendum towards the end of the current parliament and a big increase in renewable energy and green jobs – may be in conflict. Citigroup added: ‘Continued subsidy from consumers in England and Wales would be required, but Scotland seceding from the UK would clearly place this subsidy stream at grave risk. Renewable investors risk seeing their assets stranded in a newly independent Scotland.’
Edinburgh-based consultant Robert Yates said Alex Salmond was wrong to dismiss a Citigroup report which warned investors against renewables because of uncertainties caused by the prospect of independence.
Whatever Scotland’s ambitions for renewable energy, SSE and Citygroup are right, that until it has both a credible policy and the clear mandate and framework for its implementation, energy investors will be thinking twice before siting projects north of the border.
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