Gore praises Scots renewables ‘but dearer bills loom’

ALEX Salmond’s aspirations to make Scotland a world leader in renewables have been both damned and praised as a business leader warned the commitment was “misguided” hours after Al Gore applauded the country’s green energy plans.

Mike Salter, chairman of the Scottish Chamber of Commerce (SCC), warned the cost to businesses of subsidising Scotland’s renewables ambitions could leave them bankrupt due to massive hikes in electricity bills.

His criticism came as a dampener to an impassioned speech yesterday from Nobel Laureate and former US vice-president Mr Gore in which he described Scotland’s response to climate change as “inspiring”.

Mr Salter’s words, at the SCC’s annual dinner in Glasgow, were met with furious criticism from the Scottish Government and from the Edinburgh Chamber of Commerce, which had organised the conference at which Mr Gore had been speaking.

The SCC chairman raised concerns about Scotland’s targets to generate the equivalent of 100 per cent of its electricity needs from renewables by 2020 and argued that instead the country should make use of nuclear power – something the Scottish Government has ruled out.

Blaming public subsidies for renewables for rising energy bills, he said: “Scotland is almost uniquely placed in Europe as a source of wind and tidal generated electricity, and it is rightly seen as a major opportunity for Scotland and Scottish business, particularly in the area of offshore wind generation capacity. However, the costs of these projects is going through the roof.”

He pointed out that a 289MW offshore wind farm in the Irish Sea had required an investment of £1.6 billion, working out at £4.1m per megawatt.

This he said was 25 per cent to 35 per cent more expensive than nuclear, and 25 per cent more expensive than estimates of the cost of offshore wind 18 months ago. He highlighted recent research by consultancy Mott McDonald that the cost of energy generation from wind farms was now approaching 19p/KWh, compared to about 2p/KWh for gas, and warned companies would go out of business if electricity prices doubled.

“The Scottish Government have committed to have the majority of generation coming from this very expensive source by 2020,” Mr Salter said.

“All I say at this time is – have a care. This is indeed a very significant opportunity for Scotland, but only if the cost base is right.”

Earlier in the day Mr Gore, the man behind the climate-change film An Inconvenient Truth, told hundreds of people at the Scottish Low Carbon Investment Conference in Edinburgh that Scotland had “unique opportunities with the natural resources, including the incredible percentage of offshore wind resource and the excitement of the potential of wave and tide energy”.

Lavishing praise on the First Minister’s support for the green-energy sector, he said: “Alex Salmond has been inspiring in his determination to realise the opportunity that Scotland has.”

He added: “Thank goodness that Scotland is providing such leadership.”

Niall Stuart, chief executive of Scottish Renewables, criticised Mr Salter, saying: “The recent increases in energy bills are a direct result of increases in gas prices – not the cost of renewables.

“With coal and gas prices set to rise further, renewable energy should actually keep costs down for homes and businesses.”

Mr Stuart welcomed Mr Gore’s comments, which he said “reinforce that Scotland is making a disproportionate impact on the growth of renewable energy and efforts to tackle climate change and reinforces that our world lead in key parts of the sector is being noticed”.

Mr Salter was also criticised by Edinburgh Chamber of Commerce.

Chief Executive Ron Hewitt said the low-carbon debate had “moved on” from Mr Salter’s arguments. “Edinburgh Chamber whole-heartedly supports a policy which has the potential to employ more than 130,000 people in Scotland, create a new sustainable industry, be a major contributor to a successful economy, and help safeguard the future of our planet,” he said.

And energy minister Fergus Ewing said the subsidy for renewable energy would add just £15 to bills this year.

However, at the conference yesterday Mr Ewing acknowledged that the public would have to pay for the drive towards renewables. “Until a few years ago the public were not aware that the ROC [subsidy system known as Renewables Obligation Certificate] system was being paid for through their bills,” he said during a panel discussion. “The penny has now dropped.”

He went on to leap to the support of the energy companies, saying there was “absolutely no point in demonising” the power companies, and added that it was better for them to be making profits than losses.

During his speech Mr Gore urged his audience to find the “moral courage” to act for the sake of “our children and their children”. “We are at the proverbial fork in the road,” he said. “To continue as we are leads towards what the scientists have been warning us is a catastrophe.”

However, Edinburgh Tory councillor Cameron Rose, sitting in the audience, told Mr Gore he disagreed that there was scientific consensus for climate change.

“His apocalyptic words don’t ring true,” he later said.

However, Mr Gore acknowledged that two to three per cent of the world’s climate scientists disagreed with the consensus, but added: “If you felt some chest pains and you called 100 doctors and 98 said ‘you have heart disease’ and two said ‘don’t worry’, I don’t think you would take their advice.”

Mr Gore compared the sceptics’ lobby to the attempt by the tobacco industry to deny their product caused lung cancer.

Mr Salmond, who had breakfast with Mr Gore yesterday, said: “Scotland’s growing position as a green energy powerhouse for Europe is gaining substantial international recognition.”