Warning on subsidy risk to scottish energy potential

THE UK Government was yesterday warned that Scotland’s renewable energy potential must not be put at risk by new subsidies for nuclear.

Scottish Energy Minister Fergus Ewing sounded the warning as the westminster coalition published plans for a major overhaul of the UK’S electricity market.

Some MPS have suggested the changes will work for nuclear but not for other low-carbon power such as offshore wind and warned the plans amount to a subsidy for new reactors.

The radical shake-up will also push up costs for consumers. However, ministers insist that the measures will mean bills end up cheaper for households in future decades.

The draft Energy Bill will introduce long-term contracts that pay a steady rate of return for energy over the lifetime of new low-carbon generators, to overcome the high capital cost of building nuclear plants or offshore wind.

The changes come as it emerged electricity giant EDF is in talks with the regulator about extending the life of its existing nuclear power stations to meet short-term energy needs.

Energy Secretary Ed Davey said: “Leaving the electricity market as it is would not be in the national interest.

“If we don’t secure investment in our energy infrastructure, we could see the lights going out, consumers hit by spiralling energy prices and dangerous climate change.”

But Mr Ewing pointed out that many parts of Scotland — including Tayside and Fife — are hoping to cash in on the potential for renewables.

“Scotland already leads the world in renewable energy, which is bringing in jobs and investment to communities across Scotland,” he said.

“We should focus on that potential and the UK Government must recognise that the purpose of this reform is to support renewable energy, not to provide subsidies for nuclear energy. Clean, green renewables must not lose out from increased support for nuclear.”

Environmental groups also claimed the draft bill was skewed in favour of nuclear power.