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Minister to claim Scotland's renewable energy ambitions best served as part of UK

Scotland's renewable energy potential can best be unlocked as part of the United Kingdom, the energy minister will claim today.

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Charles Hendry will question one of the central planks of the SNP's economic argument for independence by insisting the Union makes it more likely areas such as Dundee and Fife can cash in on the lucrative market.

He will argue that the financial clout of the UK allows it to ''spread the costs'' of the major upfront investment required to set up renewable energy projects.

The claim will be seen as a direct challenge to First Minister Alex Salmond, who views the sector as a pet project and has consistently cited it as an area that will be crucial in an independent Scotland.

But, in an address to the Edinburgh University Business School this afternoon, Mr Hendry will say: ''In energy we have a united ambition — Scotland as a renewable energy powerhouse of Europe.

''We are working closely with the Scottish Government to make sure Scotland fully benefits from its resources.

''Being a United Kingdom means we can attract the large investment necessary and spread the costs. I firmly believe that Scotland's ambitions profit from being part of the union.''

Mr Salmond has taken the lead in negotiating inward investment from renewable energy firms and even suggested the increased demand for offshore wind could transform Dundee in the same way Aberdeen benefited from the oil boom in the 1970s.

The SNP Government has also pledged to produce the equivalent of Scotland's electricity needs from renewable sources by 2020.

But Mr Hendry will claim the Union also provides advantages for the electricity market.

''Huge investment is needed in the electricity sector in the coming years,'' he will say. ''For example from 2020 to 2030 30-40GW of low carbon capacity needs to be added to the grid in order to meet our energy and climate change commitments.

''This will require an investment of around £100 billion. Improvement is critical and made easier because of the size of the UK market.''

A number of industry insiders have privately expressed fears the referendum planned for autumn 2014 and prospect of independence could threaten existing subsidy mechanisms and damage the sector.

But Mr Salmond insists there will be no disruption to Scotland's renewable energy ambitions in the event of a Yes vote in the referendum.

A spokesman for Scottish Energy Minister Fergus Ewing said: ''Scotland has as much as a quarter of all of Europe's potential offshore wind and tidal resources and a 10th of the continent's wave power — that will still be the case following independence.

''Independence will enable us to take full responsibility for this green energy revolution, along with the investment and thousands of jobs it brings.''

Photo by Gareth Fuller/PA Archive

Click for more on these topics:

People: Alex Salmond, Charles Hendry | Concepts: Independence, Renewable energy, Wind power, Referendum

 
Comments
Comment bubble[ 6 ]

09.57am - 20.02.2012  Charles Addison - Glasgow, Scotland    Report This

Does Mr Hendry consider nuclear power plants as part of the UKs plan for "green" power investment. Could this be why some at Westminster wish to remove planing powers from the Scottish government's remit. He then trots out the usual un-named business insiders who are expressing investment fears.


11.02am - 20.02.2012  Trafalgar - Lossiemouth, United Kingdom    Report This

The hils and coastline of Scotland, are being ruined by these ugly looking windfarms Fergus Ewing and his clowns are allowing to be erected. It the UK Government had sanctioned destruction on this scale, this snp government would throw their toys out of the pram,, again.


03.25pm - 20.02.2012  Stuart Allan - Dundee, Scotland    Report This

But Trafalgar, according to this minister, the UK govt IS sanctioning it. Independent or not, renewables will continue to flourish in Scotland. You think they're ugly. I do not.


04.25pm - 20.02.2012  Trafalgar - Lossiemouth, United Kingdom    Report This

We've hills all around us Stuart , full of the ugly things, and the local papers always have letters condemning the increasing numbers of these monstrosities. The landowners are making fortunes in spoiling Scotland, by being paid to allow them on their land.


07.30pm - 27.02.2012  John Campbell - Dundee, Scotland    Report This

UGLY? Huge rusty oil rigs and freighters chugging up the coast, dilapidated barns and farmhouses, crumbling harbours and dry stane dykes, the newly-industrialised plastic-tunnel countryside thanks to greedy berry-farmers and thousands of aged pylons... THAT'S WHAT'S UGLY!!!


09.18pm - 29.02.2012  Cameron Edwards - Greenock, Scotland    Report This

Scotland will flourish. The Brits are hypocrites, laughable - only they can at once lambast it and then plot to get in on the green action. I - and my family - rather like the wind farms. Pretty. Something nice about gleaning energy in a truly clean way. The moaning about the 'ugly' farms = nonsense


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