Fergus Ewing: electricity market reform risks ‘failing’ Scotland – The Herald

Electricity market reform risks “failing” Scotland, according to the energy
minister.

Changes to the UK’s Energy Bill debated in the House of Lords last week
will remove Holyrood’s powers over an aspect of renewable energy policy,
Fergus Ewing said.

He also criticised British ministers for pressing ahead with nuclear power,
arguing it is at odds with Scottish ambitions.

“Developments ranging from small hydro stations and innovative projects in
our islands, to floating offshore wind, carbon capture technology and vital
stations such as Longannet – all of these are placed at risk by the UK
Government’s reforms,” he said.

“The UK Government must listen to the concerns raised by industry that
would see electricity market reform failing in its objectives.

“The Scottish Government will not support an outcome which sacrifices our
renewable ambitions in preference to discredited, expensive and imported
nuclear technology.”

In a statement to MSPs, Mr Ewing focused on the Lords’ attempt to remove
discretion over Renewables Obligation (RO) in Scotland.

The scheme was introduced in 2002 to provide incentives for large-scale
renewable electricity in the UK, according to the UK Government’s
Department of Energy and Climate Change.

Mr Ewing said the Lords’ action cut through a live Scottish Government
consultation and caused “consternation” in the industry.

“This Parliament has supported the electricity market form process but
based on an outcome consistent with Scottish policy priorities and
ambitions,” he told MSPs.

“Such an outcome now looks at best uncertain.

“The removal of Scottish parliamentary discretion in the matter of the RO
is troubling and demands an explanation.

“The chamber should also understand the threats posed by electricity market
reform to Scotland’s renewables ambitions and our established position as a
provider of secure energy supplies.”

Labour finance spokesman Iain Gray said bickering between Holyrood and
Westminster is not helpful.

“Somebody needs to bang these two governments’ heads together, get them to
stop dithering and find a resolution which protects the single British
electricity market Scotland needs,” he said.

“Currently, we receive a third of the UK money for renewables, although we
have less than a tenth of the UK population, so maintaining a single
British energy market is vital to ensure that costs associated with
renewables don’t fall solely on the shoulders of Scots.”