Plans to offer a new deal to encourage a wave of investment in renewable energy schemes on the Scottish islands have been welcomed by industry figures.
A consultation will be held this summer on extra support for green energy producers on the islands, including a “strike price” – a guaranteed price for the power – which is higher than for mainland developments.
The move was announced by Treasury chief secretary Danny Alexander last night as part of a raft of initiatives to strengthen the UK’s energy infrastructure.
Jenny Hogan, director of policy for industry body Scottish Renewables, welcomed the announcement but warned that they could not afford any delays.
“The UK Government’s commitment to provide extra support for renewable generators on the Scottish islands will help reassure investors who are faced with the highest grid connection charges in the UK – but we can’t afford to waste any time,” she said.
“The islands have huge potential for wind, wave and tidal energy, and can make a substantial contribution to the growth of renewables and the cleaning up of our energy sector.
“Likewise, local economies would receive a massive boost from the likely investment and jobs that could be created by projects on the islands.”
The move is designed to address complaints that multi-million pound investments are being held-up by the high cost of transmitting electricity from the islands, and follows talks between UK and Scottish ministers.
Western Isles Council leader Angus Campbell said: “I am extremely pleased that the specific circumstances of the islands has now been recognised and that there is a commitment, in principle, from the UK Government to address this critical issue.”
As part of a package of measures, new strike prices for the rest of the country were also unveiled yesterday, earlier than expected, providing firms with certainty and encouraging investment.
“This is an important announcement for the industry as we have been waiting for some time to learn of what levels of support we can expect from 2014,” said Ms Hogan.
“Knowing your strike price is just part of the picture; we now need to see the details of the contracts to put them into context, which won’t be published until August. Only then can we judge if the levels will be sufficient to encourage the investment needed to meet our targets.”
