Sir,– “Job Losses Blamed on Westminster” headlined Nicola Sturgeon’s
response to the news Samsung was abandoning its offshore wind project in
Methil.
When the First Minister accused the Westminster Government of a lack of
support, presumably she did not mean the Renewable Obligation (RO) subsidy
scheme.
Available since 2002, this scheme offers offshore windfarms a guaranteed
25-year bonus payment of 200% and onshore windfarms a guaranteed 25-year
bonus of 100% on any electricity they produce.
Only 15 months ago the Westminster Government agreed to raise the subsidy
rate for Samsung’s turbine to 250%.
The Renewable Obligation subsidy scheme is open to all UK wind projects,
and far from being discriminated against, Scotland has been the recipient
of the lions’ share of onshore wind subsidy.
This has not only supported the SNP’s much more ambitious target for
renewable energy.
It has also bankrolled Scottish ministers in their argument that investment
and expansion of onshore wind was an essential precondition for development
in offshore wind.
Nor can the First Minister have meant the Contracts for Difference (CfD)
subsidy scheme, introduced last year as part of the UK’s electricity market
reform to promote competition and hence lower electricity costs among
renewable energy providers.
The first auction earlier this year awarded contracts to 10 Scottish
onshore windfarms and only five in the rest of the UK, and to one offshore
project in Scotland and the rest of the UK respectively.
Nor presumably did the First Minister mean the Renewable Energy Investment
Fund.
The Scottish Government launched it in 2012 with £103 million, all of which
came from Westminster as a one-off grant from the UK Fossil Fuel Levy for
the purpose of supporting greater investment in Scotland’s renewable sector.
So what did the First Minister mean by lack of support for Scotland’s
offshore wind ambitions?
Perhaps she misunderstood the Conservatives’ recently announced “cut” to
onshore wind subsidy.
This merely closes the RO scheme one year early in favour of CfDs and is
the result of the UK, and Scotland, meeting their targets for renewable
energy ahead of schedule.
It does not discriminate against Scotland and no offshore projects are
affected.
If the First Minister really wants to understand why Samsung is pulling out
of Methil and Scotland’s offshore wind industry still hasn’t got off the
ground, she needs to let go of her knee-jerk responses that Westminster is
to blame and that more public money is the answer.
The Scottish Government has already funnelled more than £5 million of
Scottish taxpayers’ money into the Methil turbine.
“White elephant” doesn’t begin to describe something that has barely turned
since its erection, and that is in a location on the Methil beach which
cannot begin to replicate the technological challenges of being 10 miles
out in the North Sea.
Samsung is walking away from something it got for free.
The ongoing discussions between Samsung, Scottish Enterprise and Offshore
Renewable Energy Catapult (Orec) have been welcomed by Fife Council’s
Lesley Laird because, quoting the Orec spin, “it would provide UK industry
and academia with unrivalled opportunity to develop a deeper understanding
of operations and maintenance of offshore wind turbines and thus drive down
the cost of delivering clean energy from offshore wind”.
Few politicians can resist, at least in the short term, running with
industry spin promising thousands of jobs and billions of investment, but
they would do a better job for deprived communities if they got off the
merry-go-round of pumping ever more public money into lost causes, whether
the money comes from Westminster or Holyrood.
Graham Lang
Chairman
Scotland Against Spin
The failure of renewables
Sir,– Samsung Heavy Industries have axed plans for an offshore wind turbine
manufacturing plant in Methil, only three years after Alex Salmond
announced the deal that was backed by £8 million of Scottish taxpayers’ money.
This is only the latest of failed renewable ventures which promised
Scottish jobs in return for Scottish grants.
Remember the failed joint venture of Aaeger and Pelamis Wave Power?
Remember Welcon? Part of Skycon took over an old Vestas factory in
Macrahanish and promised turbine manufacturing jobs in return for Scottish
grants.
They went into liquidation. Millions of pounds have been squandered by our
politicians on doomed projects.
When will they ever learn?
Dan Arnott
St Brycedale Court
Kirkcaldy
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