Responding to today’s UK Budget as set out by the Chancellor of the Exchequer George Osborne, Scottish Renewables Chief Executive, Niall Stuart, said:
“The lack of any further budget to support new renewable energy projects this side of April 2021 will be a major blow to large parts of the industry.
“Likewise, there was no mention of any framework to support investment in the cheapest forms of renewable power: onshore wind and solar. That begs serious questions about future deployment and sits at odds with the Government’s over-arching commitment to cutting carbon emissions at the lowest cost to consumers. It also means they are the only two technologies expected to compete on the wholesale price alone.
“Scotland’s islands remain in limbo, with no signal that they will be able to bid for future contracts at a price that enables them to absorb the massive grid charges that projects on the islands will face.
“The Government is clearly committed to supporting the continued growth of offshore wind, but it is going to be extremely challenging for industry to meet the cost reduction target set out, especially with the limited level of capacity that the budget can support. We will, however, do absolutely everything in our power to get there.”
The organisation was more positive, however, on the Chancellor’s commitment to supporting the development of a more flexible electricity grid and storage:
“We are pleased that the Treasury has recognised the importance of new areas like storage and smart grids, and will support investment in the modern and dynamic electricity network required to underpin the migration from fossil fuels to cleaner alternatives.”
