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Green energy transmission charges are attacked        3/1/10   

 

 

First Minister Alex Salmond has touched on an issue which is central to the Western Isles becoming an major energy exporter.

 

The current charging regime requires electricity generators in Scotland to pay the UK's highest transmission costs.

 

It means that because renewable energy produced in the Hebrides will be more expensive because it is would be exported across a large distance to the user.

 

In contrast, in parts of the south of England companies actually receive a subsidy.

 

Mr Salmond predicted a 'renewables revolution' emanating from a Scotland which had won the 'natural lottery' - with wind, wave and tidal resources offering the capacity to produce some 10 times Scotland's own electricity requirements.

 

He said that Scotland must get the benefit of its own resources if it was to become a major exporter and the energy powerhouse of the Europe.

 

He said: "Even now, we're being held back in the exploitation of these renewables because we now have to pay in Scotland much higher connection charges to the electricity grid than companies have to pay south of the border. That's totally unfair and totally unacceptable.

 

"If we're going to make the most of this renewable revolution, then we're going to have to have equal access to the grid - and the powers for our Parliament to secure that proper access.

 

"And that's why it's important, as we move into this New Year, that the people of Scotland are given their say in making sure that their Parliament can extend its powers to have the ability to mobilise the resources of Scotland for Scotland's benefit.

 

"The referendum on the constitution is not an abstraction - it's not something for politicians. It's something for every person in Scotland. Because if we're going to harness the power of Scotland, then we need to give Scotland power.

 

The Climate Change (Scotland) Bill was passed unanimously by the Parliament.

 

The Scottish Government has also set green energy targets, including meeting 50 per cent of electricity demand from renewable sources by 2020. With 6.5 Gigawatts of renewables capacity installed, consented or under construction, Scotland has surpassed the interim target of 31 per cent by 2011.

 

But generators in the north of Scotland face charges of around £21.58 per Kilowatt Hour, yet those in London receive £2.70 per kwH while more than twice that subsidy (£6.68) is paid out to firms in Cornwall, according to National Grid's own figures.

 

This means that Scottish generators produce 12 per cent of UK generation, but account for 40 per cent of the transmission costs - or about £100 million per year more than their proportionate share.

 

The First Minister highlighted concerns that the charging regime creates a significant and fundamental barrier to encouraging renewable energy development in Scotland during his meeting with EU Energy Commissioner Andris Piebalgs in Brussels last month.

 

The National Grid has rejected Scottish Government proposals to adopt a flat rate charge for use of the system but Ministers continue to engage with National Grid and Ofgem to find a way forward.