Bold energy proposals may mean higher bills

But the massive expansion of renewable power sources and commitment to save energy - which lie at the heart of the Energy White Paper - could see "significant increases" in consumers’ electricity bills, an industry source told The Scotsman last night.

Pledges to put a five-year block on planning new nuclear power stations and increase renewable energy sources such as wind and wave power was broadly welcomed by environmental pressure groups.

Others dismissed the white paper as a "policy-free zone" and insisted "intermittent" and "unproven" renewable resources were no answer to Britain’s need for reliable, continuous electricity.

Scotland will play a crucial role in delivering the low carbon economy that the government is seeking.

The so-called "clean power plan" will see a huge boost in funding alternative energy sources, including wind, wave and solar projects, many of which are based in or planned for Scotland.

However, the white paper did not close the door completely on nuclear power - the future of Scottish stations such as Chapelcross, Hunterston and Torness will be reviewed again after five years.

Mr Blair said targets set in 1997 at the Kyoto climate change conference designed to cut global emissions were not radical enough and he pledged the UK government’s proposals would go much further - but, crucially, would not adversely affect the economy.

Britain will aim to reduce outpourings of harmful carbon dioxide by 60 per cent by 2050 - a huge increase on the levels signed up for in Kyoto.

The government white paper said Britain should supply 10 per cent of its energy from renewables by 2010.

Patricia Hewitt, the Trade and Industry Secretary, told MPs in the Commons that the white paper set out "an energy policy for the long term", with greater investment in renewable power sources.

But the opposition branded the document "long on aspiration and short on conclusion".

Tim Yeo, the shadow trade and industry secretary, said: "Seldom has a document which was so widely trailed and so eagerly anticipated been so disappointing.

"It ducks all the hard decisions and leaves Britain without a coherent energy strategy just when clarity and decisiveness were most needed.

"All we’ve got from ministers is a series of targets watered down into aspirations - bland statements which would scarcely rate a pass mark in a GCSE economics exam."

And the government was accused by its own adviser of being "wildly optimistic" about its chances of meeting global warming targets. Sir Jonathon Porritt warned the UK would fall "well short" of its previously stated goal of cutting carbon dioxide emissions by 20 per cent by 2010 unless major policy changes were made, particularly on cutting back car use.

Competitive energy markets in the UK and beyond are to be promoted and there is a pledge that every home is adequately and affordably heated.

Although nuclear power is an important source of carbon-free electricity, the report says its current economics make it an unattractive option.

But last night, a source from an electricity generating company told The Scotsman that delivering the plan would require a massive upgrading of the national grid distribution system, costing up to 1.6 billion. He said: "The upshot of all this is that prices are going to have to go up. If you want cheaper electricity then we could continue with coal, gas and nuclear. But if you want the renewable option and reduced reliance on nuclear and fossil fuels, then implicit in all of that is that prices must rise.

"The network needs to be strengthened and that could cost as much as 1.6 billion. The question has to be asked - where is that money going to come from?"

Scotland has some of the best wind resources in Europe and harnessing that energy will be at the forefront of delivering the government’s plan. A Scottish Executive spokesman said: "Planning rules and guidelines have already been unlocked and revised in 2000 and 2001 with a view to streamlining the planning process for renewable developments.

"It is reasonable to speculate that a significant proportion of development is likely to be in Scotland and therefore you would expect that to have an impact north of the Border."

The spokesman added that the 60 million in new money for renewable projects, announced in yesterday’s plan, which builds spending on this source of power up to 349 million in total over four years, also applied to Scotland.

Applications from private companies to build windfarms in Scotland are currently approaching 200, prompting fears from some groups that such developments will detrimentally change Scotland’s environment forever.

Maff Smith, the development manager for the Scottish Renewables Forum, disagreed. He said: "Scotland will continue to be an exporter of electricity, but whereas at the moment we may export that produced from coal and nuclear, in the future we will be able to export cleaner power such as that from wind and waves. That is good news for Scotland because it is the place that generates the electricity which gets the jobs and the money."

He added: " In terms of how those developments fit into Scotland, it is clear that the planning system can cope and has suitable controls in consent and refusals to look at the effects of visual impact. The Scottish planning system can look at local environmental impact and visual positioning of the turbines to ensure that those things are considered and any effects can be balanced. There is no known form of energy production that has no impact whatsoever. The benefit of wind power is that it is something that is supported by the Scottish public."

Friends of the Earth Scotland said it was "very disappointing" that the paper did not include clear targets for energy from renewables, and without them is would be difficult to make meaningful progress on tackling climate change.

Dr Dan Barlow, the organisation’s head of research, said: "In the absence of a UK target the Scottish Executive should rapidly finalise its own target of 40 per cent energy from renewables by 2020, which it is currently consulting on.

"Scotland is ideally placed to capitalise on its vast renewable resource and become a world leader in renewable technologies. The UK government’s weak stance on setting targets should not detract from Scotland’s ability to utilise its great renewable resource and benefit from the economic opportunities presented by vigorously pursuing a green energy future."

He added: "Green energy future does not just lie in wind power. Firstly, we could make great savings if we invested in energy efficiency measures. Secondly, Scotland is also well placed to exploit other renewable resources such as wave, solar, tidal and biomass."

CUTTING DOWN ON WASTE AMBITIOUS PLANS

MORE than half of all household waste in Scotland will be recycled by 2020 as part of ambitious plans to reverse the nation’s "abysmal" record on waste management.

The Scottish Executive’s National Waste Plan sets targets to recycle 55 per cent of domestically-produced waste and reduce the amount sent to landfill from 90 to 30 per cent in less than two decades.

As part of the proposals, kerbside collections of reusable waste, such as paper and glass, will be introduced to nine out of ten Scottish households, in addition to normal refuse collection.

However, part of the strategy will see an increase in the use of incineration which environmental groups have warned could lead to even greater pollution.

Friends of the Earth Scotland broadly welcomed the recommendations. However, Dr Dan Barlow, the organisation’s head of research, said: "Incineration of waste creates toxic by-products, wastes valuable resources and leads to fewer jobs than sustainable waste solutions such as recycling or composting. This plan proposes nearly a ten-fold increase in so-called ‘Energy from Waste’ facilities by 2020. In a worst case scenario, this could result in more polluting incinerators forced upon communities."

Bruce Crawford, the SNP environment spokesman, also attacked the strategy, claiming it failed to address the amount of waste being produced in Scotland, which continues to grow.

However, Ross Finnie, the environment minister, insisted the targets were achievable. He said: "Scotland’s track record on recycling is abysmal, but the launch of our National Waste Plan will help take Scotland from the bottom of Europe’s recycling league towards the top."

Targets were prepared after talks with the Scottish Environment Protection Agency, environmental groups and local councils.

In less than three years, the Executive also wants to see an immediate rise in recycled municipal waste from the current level of less than 8 per cent to 25 per cent.

To ensure targets are met, the Executive will inject 230 million from the Strategic Waste Fund into the scheme to assist local authorities in implementing waste plans.