Scottish energy industry survives major scare

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22 September 2014, Electricity, Nuclear, Solar, Wind

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The Scottish renewables industry came very close to suffering a major setback due to uncertainty surrounding the result of the Scottish independence referendum. Questions about emissions targets, how the energy market would have been split up, and who would pay the renewable energy subsidies of the vast array of existing and planned renewable power projects in an independent Scotland had no clear answers. The late realisation that the vote would be close delayed some projects and caused others to halt altogether.

Scottish independence would also undoubtedly have put energy bills up in the country, as a much greater proportion of its electricity would have been derived from renewable sources than elsewhere in the UK. With more than one third of all the UK's renewable energy capacity based in Scotland - which hosts just 8% of the UK's population - the low levels of renewable power exported from Scotland would have seen the majority of subsidies landing on Scottish energy bills. As a result, Scottish energy bills could have risen by more than four times the amount that renewable subsidies have raised bills in the rest of the UK, while bills may have fallen outside of Scotland.

The no vote, which means that Scotland will remain part of the UK, has saved the energy industry an embarrassing and costly restructuring process. The renewables industry will be looking to bounce back in the coming months. / / @DatamonitorEN

Source: MarketLine

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