Renewables head urges Alistair Darling to release green-energy cash

Published on Wednesday 11 November 2009 20:45

THE head of a renewables group will today call on Chancellor Alistair Darling to hand over £174 million of unspent money for Scottish green energy projects.

Scottish Renewables is wading into a row between the SNP and Westminster over fossil fuel levy cash set aside for renewables and now languishing in a pot controlled by Ofgem.

Under Treasury's rules, if the SNP asks for the money the same sum will then be deducted from Scotland's overall budget.

Niall Stuart, chief executive of Scottish Renewables, will today reveal at a marine energy conference in Inverness that he has written to Mr Darling asking him to release the money.

He said: "It is unacceptable for the Scottish fossil fuel levy to remain unspent at this critical time in the development of the renewable energy industry.

"We want to see the fund allocated to support renewable energy – as it is intended to do – without impacting on other public spending in Scotland."

The fossil fuel levy is paid by non-renewable electricity suppliers to support low-carbon generation.

Finance secretary John Swinney, who has argued since 2007 for the fund to be made available on top of the Scottish budget, supported Mr Stuart's call.

"This is 174m of Scotland's money that should be invested in developing renewable energy in Scotland right now," he said.

A government spokesman said: "Representations have been received from the Scottish Executive on this matter. The government is continuing to keep this under review.

"The government has made clear that it has no objection to the Scottish Executive drawing down funds from the Ofgem account into the Scottish Consolidated Fund."