Historic shift in UK energy marketplace on horizon

Next chapter likely to include energy storage, changes in use and greater interconnection

The new Westminster Government has brought a renewed focus on industrial strategy and the economic benefits of investment in the energy sector.

But, although ministers have been at pains to stress they want a strategy to deliver carbon cuts, energy security and cheap energy for all, they have yet to unveil the policies required to deliver that.

Onshore wind and solar are the two cheapest forms of renewables that can be deployed today – and on track to be the cheapest forms of electricity in the next decade.

Together they can make a huge contribution to the Government’s ambitions to tackle climate change at the lowest cost to consumers.

Both, however, remain locked out from bidding for Contracts for Difference, the scheme which supports investment in all forms of low carbon electricity generation.

In smaller-scale renewables, hydro and other technologies have been hit hard by cuts to the Feed-in Tariff.

Ministers are clearly supportive of offshore wind, and the Beatrice project in the Outer Moray Firth is advancing towards construction, with the adjacent Moray project ready to bid in the next round of Contracts for Difference.

The RSPB’s legal challenge, though, has jeopardised the four projects in the Firth of Forth and Tay, which can only impact on Dundee’s ambitions to bring significant manufacturing and assembly work to its harbour.

Away from electricity, the de-carbonisation of our heat sector – which accounts for half the energy we use in Scotland – remains woefully slow, while transport lags even further behind.

Both of these areas have to be a growing priority for Westminster, and Holyrood must also look to these two areas as Scottish ministers continue development of a new energy strategy.

Slow progress in these two areas reinforces that we are only at the very beginning of a historic shift in our energy sector, with energy storage, changes to the way we use energy and greater interconnection with the rest of the UK and Europe all likely to form part of the next chapter in our industry’s growth.

Scottish Renewables CEO Niall Stuart.