PINSTRIPE
I disagreed with many of Alex Salmond’s policies when he was First Minister
but, one on which I thought he showed bold and visionary leadership was his
support for Renewable Energy. Although not with the same gusto , the
Scottish Government has continued its support since Alex went south.
The world does have a problem with increasing pollution and a warming
planet. The scientists tell us so and produce concerning forecasts of what
is likely to happen. Common sense tells us so, an eco-system is a delicate
balance and if you disturb that balance significantly there will be changes
as the system re-balances – and these changes might wipe a good number of
us out. My own experience also tells me so, I see increased sea levels and
consequent erosion which has clearly impacted in my lifetime on Scotland’s
coastline.
This is a problem which businesses, Governments and citizens must face.
There is also, for Scotland, a wonderful opportunity. Our hills and the
seas around us contain huge amounts of pollution free energy which we can
harness.
The cost of Renewable Energy is falling dramatically, not yet to a point
where it can compete with fossil fuels but the gap is closing and it is
already competitive with the soon to be built glowing white elephant that
is the Hinkley C Nuclear Power Station. People say that Renewables are not
reliable and cannot provide baseload power. In fact Renewable Generation is
just as reliable as fossil fuel plants. Yes, the baseload question is
harder – but it is not impossible – tides are predictable and rise and fall
at different times around our coast, energy storage technology is coming on
leaps and bounds and intelligent building systems can manage power use to
smooth out demand. If we try hard we can do it. Scotland not only has good
Renewable Energy resources but also companies and entrepreneurs who want to
develop them and so create wealth and jobs for our country. We have a
competitive advantage in this field which we should not discard lightly.
A significant issue is that , having declared itself as “the greenest
Government ever” when it came into office with the Lib Dems in 2010, the
new Conservative only UK Government is now busy machine-gunning the UK
Renewables industry. Feed in Tariffs for domestic Renewables are to be cut
to derisory levels from 2016, bidding rounds for contracts for difference
(vital to allow Renewable Energy projects to proceed)are endlessly delayed
as well as reduced in scale, Nimbyism is allowed to block sensible onshore
wind projects in England – though thankfully generally not in Scotland
where the politicians and people have been far more supportive and
sensible. Carbon capture projects are quietly put to sleep. The UK
Government has the cheek to go to the Climate Summit in Paris because it
has to be seen there but back at home the Green Revolution is being
strangled. I know the economic times are difficult but our children and our
grandchildren will not thank us for our failure here. Action now will
reduce the scale of the challenge we will face later. Dave and George need
to show some leadership – tell them Alex – nicely.
Pinstripe is a senior member of Scotland’s financial services community.
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