Scott Wright, Deputy Business Editor
SCOTTISH Renewables has seen a 15 per cent slump in membership after the
deployment of new electricity generating capacity from renewables dropped
to its lowest level since 2010.
The trade body highlighted the “extremely challenging” conditions facing
the sector as it reported membership numbers had dropped to 277 in 2015-16
from 328 the year before. It had 315 members in 2013-14, and 328 in 2012-13.
Scottish Renewables said the decline in membership is directly linked to
the withdrawal of schemes that have been vital to the development of the
renewables sector, citing the UK Government’s decision to end the
Renewables Obligation a year earlier than planned and its removal of
subsidies for new onshore wind projects, as well as cuts to subsidies for
solar power and hydro projects.
It also warned the renewables industry, which currently provides nearly
half of Scotland’s electricity, will see further contraction unless the
industry secures a “viable framework for future investment”.
Chief executive Niall Stuart said: “Last year saw the removal of – or
significant reductions in – schemes to support investment, and no clear
signal of how or if these will be replaced for many parts of the industry.
“Last year saw the lowest deployment of new renewable electricity
generating capacity in Scotland since 2010, and as the second-worst year
since 2007. We have seen many companies in the sector downsize their teams
already, and I worry we are going to see further contraction.” According to
Scottish Renewables, the decision to close the RO early put £3 billion of
investment in Scotland at risk. And it said the sector was dealt a further
blow by the UK Government’s move to end subsidies for new onshore wind
projects.
Adding to the uncertainty, Scottish Renewables said, are issues is the
uncertainty caused by delays in implementing the RO’s successor scheme,
Contracts for Difference, under which companies looking to build renewable
projects bid for the right to sell the power they generate. Mr Stuart said:
“The irony in all of this is our sector continues to enjoy strong public
support, and Scotland and the UK need a massive increase in renewable
energy between now and 2030 if we are to meet our climate change targets at
the lowest cost to consumers.
“But, of course, we can only deliver that with a route to market. If we
want continued investment and to maintain employment in the sector then it
is vitally important government proceeds as soon as possible with the
long-overdue auction for contracts for renewable power, and that onshore
wind and solar are brought back into future auction rounds.”
Scottish Renewables said there is now “no way” Scotland would achieve its
target of generating the equivalent of 100 per cent of its gross annual
electricity consumption by 2020.
A Scottish Government spokeswoman said: “Scotland is at the forefront of
the renewables industry, but there is even more we can do to build on the
considerable progress made in developing our hydro, marine and offshore and
onshore wind resources.
“Recent decisions taken at UK level have been damaging to key areas of the
industry. It is essential UK ministers set out their plans for the next
Contracts for Difference allocation round without further delay.”
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