England Should Continue To Subsidize Renewable Energy In Scotland Claims Minister

As we have recently discussed the future of bilateral renewable energy subjects between Scotland and the rest of the UK could become very turbulent if the country becomes independent. With many investors worried about how a break away from West Minister could lead to end of the Renewable Obligation Agreement for the country and thus lead to the cancellation of many forthcoming wind and solar power projects north of the border.

energy debate

England Need Scotland For Energy Supply

This is the claim from SNP leader Mr Salmond who stated that England is dependent on Scotland for power surges in energy grid demands and any breaking of renewable energy subsidies will lead to the co-operation between power grids being called into question. A shared energy market the minister believes is the best for both countries.

A Shared Energy Market Includes Green Subsidies

With sharing of the energy market also comes the sharing of green subsidies as one country can not have green incentives while another goes without under the “Renewable Obligation Agreement”. While the agreement itself may become the subject of intense scrutiny if as Mr Salmond states it should remain. “nobody wants blackout” This is the grim reality of a miss managed power surge that England would not be able to support if their was a break up of shared energy.

Could England Support Scotland Renewable Plans With Nothing In return

This would be the key question that MP’s would have to answer should any such agreement continue to the detriment of the English tax payer in funding wind power, solar panels Scotland farms and further development of their renewable market. But the SNP minister makes the valid point that England does rely on Scotish power stations for it electric capacity to the tune of over 12.5% of the UK’s generation between both nations.

The Electricity Market v Renewable Subsidies

With grid parity an issue that is very contentious between renewable and conventional energy suppliers any future funding into large scale wind and solar power projects for an independent Scotland could be a real battle for West Minster to sell firstly to the UK taxpayer. Secondly to suppliers competing against Scottish renewable companies who already receive more funding into renewable projects than the electricity they export, thus the potential of the remaining UK market being sold electricity at lower cost than can be generated within our shores.

west minister

Will The UK Stick With Scottish Energy Should They Become Independent

Currently the close relations between all UK countries is the main issue that the yes campaign believe should be the reason to stay together. This is the strength of working together and the ability to strengthen one and other more than any other bilateral agreement could provide. So the though of independent Scotland simply expecting longstanding agreements and obligations to continue is being advised as ill advised by many analysts. The rest of the UK would be in a position to further invest in their own infrastructure as well as open the door to energy imports from other countries.

Could Independence Lead To Renegotiating Of EU Deals

The EU carbon and renewable targets is an issue that has been covered frequently by us over the last few weeks and any break could see the remaining UK nations in a position to ask for re-consideration of energy targets if there is a break away. This is partly due to the 45% plus that Scotland currently contributes to these target from their wind generation alone.

Could Green Targets Damage An Independent Scotland

With some speculators claiming that any break away could intimately lead to increased energy bills of up to £250 annually for Scottish residents due to a bid to reach EU targets via solar panels and more predominantly wind. Such declarations will not be welcome by the yes campaign but it clear to see that any yes vote will contain a huge amount of hard decision to be made on both side of the border. Both countries will face infrastructure problems within the energy market as well as the continued calls for grid parity from conventional energy suppliers to counteract the subsidies passed on to wind and solar power companies.

Some previous related articles of interest:
Why big business is turning it attention to solar pv and wind power investment
Solar Power investment increasing due to further big business interest
Solar powered homes are the future

England Should Continue To Subsidize Renewable Energy In Scotland Claims Minister
Can England continue to subsidize Scottish renewable projects

SolarKing UK
large scale solar investment, solar power projects
The way in which Westminister funds Scottish energy sector.

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February 11, 2014
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