Renewables investor notes Brexit may fuel demands for Scottish independence

A RENEWABLE energy investor with significant interests in Scotland has highlighted the potential for upheaval in the energy market if the country becomes independent.

The Renewables Infrastructure Group (TRIG) has developed a portfolio that includes stakes in 16 wind farms across Scotland and a battery storage facility in

West Lothian.

However, the company said yesterday that the prospect of Brexit stoking demands for Scottish independence had left it facing uncertainty. Noting concern that the UK may not be able to agree a trade deal with the EU on the timescale set by Boris Johnson the group said: “An additional uncertainty is how Brexit may affect Scotland and any further potential independence initiatives. An independent Scotland’s energy policies may have implications on the renewables market, including future new capacity deployment, the treatment of historic subsidies or the trajectory of power prices.”

The comments highlight the possibility that an independent Scotland may not maintain support for renewables generation at the level provided by the UK Government. This could impact on the willingness of investors to support the development of assets such as wind farms, which are expected to be operational for years.

It is understood that if Scotland were to become independent TRIG could be less keen on investing in the country if its managers could not get the required clarity regarding the subsidy regime, currency questions and factors such as cross-border transmission arrangements.

However, developers of new onshore wind farms seem to be increasingly confident of being able to operate without subsidy.

The cost of developing wind farms has fallen as the scale of the industry has increased and technology has advanced.

TRIG has increased its exposure to Scotland in recent weeks.

Last month it bought a 100 per cent stake in a project to build a wind farm on the Kintyre Peninsula for an undisclosed sum. It said the 14-turbine Blary Hill wind farm project would generate more than £3.9 million of inward investment for the local economy during the wind farm’s construction and first year of operation. The wind farm will sell power into the wholesale market without subsidy.

After increasing annual profits to £162m from £123m, TRIG said it was well positioned to generate sustained and consistent returns for shareholders.the investments of the Guernsey-registered group are managed by Infrared Capital Partners.

TRIG reckons its portfolio generates enough renewable power for one million homes.

The group has investments across Europe, including wind, solar and battery storage assets. The range helps TRIG manage its exposures to power markets, weather patterns and regulatory risk.