Renewables firms fear independence

ONE of the pillars of the SNP’s plans for independence has been dealt a blow after nearly half of renewable energy developers warned that separation from the rest of the UK would damage their industry.

A survey seen by Scotland on Sunday has shown that 44 per cent of developers, funders and suppliers felt independence would not benefit renewables projects north of the Border.

The industry insiders questioned whether a standalone Scotland could afford to continue with the current levels of financial support for the industry in the long term.

Only 29 per cent of those questioned felt that separatism would bring benefits for their industry, while 27 per cent were undecided.

Andy Drane, an energy partner at commercial law firm Davidson Chalmers, which conducted the survey, said: “Concerns around constitutional change may simply reflect uncertainty over the industry’s relationship with continental Europe and the ability of an independent Scotland to maintain subsidy levels over the longer term.”

Perhaps equally worrying for First Minister Alex Salmond is a warning that 46 per cent of those surveyed feel the Scottish Government’s renewable energy targets – including meeting the equivalent of 100 per cent of Scotland’s electricity requirements from alternative sources by 2020 – are unachievable.

Nearly half of respondents believe neither the Scottish nor the UK government is providing enough support to projects for the industry to hit politicians’ renewable power targets, with only 37 per cent thinking that they receive enough support.

Drane stressed that his firm had “no political agenda to promote”. He added: “While there are a significant number of respondents voicing concerns about the potential impact of constitutional change on the sector, there are also some views on more immediate issues, which the government may wish to examine.

“The fact that a sizeable minority – nearly half of those surveyed – think existing targets are not achievable and the sector is not being given suitable support should be noted.”

Other concerns highlighted by the survey include uncertainties over the replacements for the current system of subsidies – such as renewables obligation certificates (ROCs) and feed-in tariffs – along with worries over grid connections and a lack of available finance.

Niall Stuart, chief executive of trade body Scottish Renewables, said: “What this survey shows is people working in the renewables industry have a range of views on the question of constitutional reform, which is reflective of those held by the wider public.”

A Scottish Government spokeswoman said: “Independent modelling and the Scottish Parliament’s Energy, Enterprise & Tourism Committee have found that the Scottish Government’s target of the equivalent of 100 per cent of electricity from renewables by 2020 is achievable.

“Department of Energy and Climate Change figures show that, in 2011, Scotland generated enough power from renewables to meet more than 36 per cent of Scottish electricity consumption – exceeding our interim target.”

She added: “The Scottish Government is giving industry the certainty it needs to invest in Scotland and the UK government must do the same, addressing concerns over future support for the sector.”

The survey questioned just under 100 professionals working in the sector.