Scottish independence: Country ‘incapable’ of being green powerhouse

THE Scottish Government’s already “questionable” renewable energy targets would become “highly questionable” if it became independent, a top market analyst has said.

Peter Atherton, head of European utility sector research at Citigroup Global Markets, said an independent Scotland would “probably not” be able to support a large-scale renewable energy industry.

Mr Atherton gave evidence yesterday to the Commons energy and climate change committee’s scrutiny of the impact of potential Scottish independence on energy and climate change.

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He said “all” of the investors he had spoken to had decided to halt investment on their offshore wind projects until the post-referendum regulatory regime was settled.

The committee also heard from the National Grid and energy firm E.ON, both of which said they were continuing to invest in Scottish renewables.

However, Mr Atherton described current investments as “small-ticket items”, which were inadequate to realise the Scottish Government’s “big plans”. He said it was “questionable” whether the current UK-wide renewables subsidy would continue if Scotland seceded, and said investors “cannot and will not make these investments” without the guarantee of ongoing subsidies.

He added: “From the corporates who are involved in investing in offshore wind, particularly in Scotland, that we have been talking to in recent months, all of them have said to us: ‘We will not progress with offshore wind projects in Scotland until such time as we gain that certainty’.”

He said this uncertainty could be solved by an immediate pre-referendum agreement to continue the UK subsidy in the event of an independent Scotland.

However, he suggested the Scottish Government “do not want to write the letter” requesting an agreement and said it was “questionable” whether the UK government would respond.

Duncan Birt, customer service manager at the National Grid, said “there remains very strong interest in Scotland and very strong development” in proven technologies such as onshore wind and biomass, and in upcoming offshore developments.

He said: “From the point of view of connection activity, interest remains very strong. In terms of our own investments, based on the [government] public statements we’ve seen, those are continuing.”