Renewable energy ‘is biggest opportunity in 10,000 years’

Speaking at the Scottish Low Carbon Investment Conference in Edinburgh yesterday the First Minister said he hoped the Prototype Offshore Wind Energy Renewables Support (Powers) development fund would help Scotland fulfil his dream of a world-leading position in the green energy sector.

Mr Salmond said the cash would be split between up to seven companies, to help them get offshore wind designs off the drawing board and into development.

Addressing the audience at the opening speech yesterday morning, he compared the development of renewable energy in Scotland to the time when mankind started farming, about 10,000 years ago.

“It’s a turning point like the discovery of a new world or the change from hunter gathering to agriculture,” he said.

And he described it as a “paradigm shift”, adding that it was a “great leap forward for mankind”.

In decades to come youngsters would be visiting the National Museum of Scotland to look at the devices developed to harness the power of the winds, waves and tides, he said.

The Scottish Government hopes the new Powers fund will leverage a further £80m in private investment to see prototypes of new offshore wind turbines developed in Scotland.

It will be open for applications from across Scotland until March 2013.

The announcement of the cash injection follows the decision by several international turbine manufacturers.

Spanish firm Gamesa has established a new £12.5m Research and Design Centre of Excellence in Bellshill, which is being officially opened today.

Other international firms to establish a new presence in Scotland include Mitsubishi and Doosan.

Mr Salmond urged hundreds of delegates from all over the world to rise to the challenges facing the renewables sector in Scotland, including the need for new investment, development of a supply chain and the need to gather public support.

He described the economic conditions as “severe but transient”, which must not alter Scotland’s course.

“It’s possible to grow the Scottish economy while simultaneously moving towards a low carbon economy,” he said.

He predicted 130,000 jobs will be created in the low carbon sector in Scotland by 2020 – double the current number. The First Minister’s enthusiastic opening of the conference, at the Edinburgh International Conference Centre, was met with a positive response from the energy sector, investors and environmental groups.

However, some urged caution, highlighting the need to develop a sustainable industry over a long time period, and warned the high cost of renewables was putting off some investors.

Eddie O’Connor, chief executive of Mainstream Renewable Power, lavished praise on the First Minister’s approach to developing the renewables sector.

Referring to the the potential for offshore wind power, he said: “Scotland has that in spades. Secondly it has vision in terms of its government. Alex Salmond is the one person who gets enthusiastic about creating the supply chain and creating a vision for his country.”

He urged action, saying: “There’s a need to make haste because otherwise we could easily lose out to the Chinese.”

He added: “Oil is $110 a barrel. Does anyone really think it’s going to come down from that? Scotland is beautifully positioned in this race. So let’s get on with it.”

Ian Marchant, chief executive of Scottish & Southern Energy, told the conference he believed Scotland had a “tremendous advantage” because of the country’s history in oil and gas.

He said: “Dominance is the minimum we should be aiming for.”

However, he urged caution in acting too fast, saying a “sustainable industry” was needed, which could take longer than 2020 – when Europe has a target of generating 20 per cent of its electricity from renewables.

“I think we should be thinking about bigger targets but over a longer period. We have got to get the cost down. The industry’s technology is still relatively immature.”

Keith Anderson, chief executive of ScottishPower Renewables, said: “I absolutely agree that it’s a colossal opportunity for the country and the industry.”

He said although the new £35m fund was a “drop in the ocean” in the life of an offshore wind project, if used wisely it could be turned into a figure ten times as large.

Cheryl Fisher, head of project finance at the European Investment Bank, sounded a note of caution.

“Scotland can make a really substantial contribution. Whether they can dominate I’m less sure. Scotland is slightly late to the game when looking at offshore wind.”

Friends of the Earth Scotland staged a protest outside the conference centre yesterday, over RBS’s sponsorship, calling the firm the “Oil Bank of Scotland”.