Scottish Renewables statement on DECC Renewables Obligation announcement
25 July 2012
Scottish Renewables responds to the results published by Department of Energy and Climate Change (DECC) on the Government’s Banding Review of the Renewables Obligation scheme.
Niall Stuart, Chief Executive of Scottish Renewables, said: “The cut in support for onshore wind strikes the right balance between keeping energy bills down for consumers and ensuring we maintain investment in this sector.
“Onshore wind has become increasingly competitive and evidence supports the 10 per cent cut in the RO finally confirmed by government from 01 April 2013.
"However, the announcement that government is launching a further review of support for onshore wind later this year only creates further uncertainty and makes it difficult for the industry to plan ahead, though we are pleased that the decision on any changes in 2014 will be based on evidence rather than political views.”
In October 2011 the Scottish Government and UK Government both launched consultations on proposed changes to the financial support provided to the renewable energy industry known as Renewable Obligation Certificates (ROC). One of the main proposals was to lower the support for onshore wind from 1 ROC to 0.9 from April 2013.
Today’s announcement only applies in England and Wales. The Scottish Government will publish its own support levels later this year based on the same analysis used by DECC, and it is expected to introduce similar levels of support for most forms of renewables.
Commenting on the announcement from Energy Secretary Ed Davey that hydropower will see a 30 per cent cut in financial support, Mr Stuart said: “The considerable cut in support for hydro means that companies will have to re-consider some major investments. Feedback from the industry suggests a number of planned schemes may not go ahead unless the Scottish Government increases the levels of support for hydro in Scotland in its own Banding Review.”
DECC has also announced an increase in support for marine energy in England and Wales which will now have the same levels of Renewable Obligation as in Scotland.
Mr Stuart said: “Scotland has a significant lead in marine energy development, in part because of the greater levels of financial support through the RO for developers around the Scottish coast. DECC has now removed this advantage and we need to see the Scottish Government use every additional tool they can to support the industry’s growth if we are to stay ahead of the chasing pack.”
Mr Stuart also urged the Scottish Government to look carefully at proposals for biomass to ensure this industry can play its part in Scotland’s future energy mix: “Biomass could meet a major part of Scotland’s electricity needs, and we will be working with our members and the Scottish Government to ensure that bandings for biomass in Scotland support the sustainable growth of the sector.”
Notes to Editors:
- One Renewables Obligation Certificate is valued at £40.71 in 2012-13
- Renewable energy developers only receive ROCs in exchange for actual electricity produced.
- In October 2011 the Scottish and UK Government launched consultation on the future financial support for the renewable energy sector.
- The Scottish Government Renewables Obligation (Scotland) Order 2011: Consultation on Review of ROC Bands, October 2011.
- DECC press release issued today.