Alex Salmond claims Scottish independence would increase energy market certainty
UK Chancellor George Osborne should stop creating uncertainty in the energy market, Scotland’s First Minister Alex Salmond told the audience at the FT Global Energy Leaders Summit this week. In a characteristically robust speech, he claimed Scottish independence and the country’s strong support for renewable power would benefit both Scotland and the UK.
Recalling with amusement a speech the chancellor made in Glasgow recently, warning that Scottish independence could create uncertainty in the energy market, Salmond was scathing about recent interventions by the Treasury to boost the UK’s use of natural gas for power and reduce subsidies for renewable energy.
In contrast, Scottish independence – the Scottish National Party’s key policy aim – would see a continued “clear, consensual and consultative” approach to energy policy in Scotland, Salmond said. He argued that the continuing fight between the Department of Energy and Climate Change (DECC) and the Treasury was contributing to uncertainty among investors in renewable and conventional energy industries.
Indeed, the Financial Times reported last month:
“Seen from the boardrooms of companies – including several major international businesses, waiting to invest in gas fired power generation, or nuclear, or offshore wind – the frustration about the indecision on policy is turning to indifference. Some have already walked away.”
Salmond claimed in his speech that if independence was achieved, Scotland would continue to contribute to the UK’s energy and climate change targets in a “shared marketplace”. But he added that Scotland may need a separate energy regulator to “promote energy efficiency, tackle fuel poverty and enhance [Scotland’s] ability to maximise [its] vast energy potential”, pointing out that cross-border alignment of energy systems is common across Europe. ScOfgem, anyone?
Scotland aims to meet an equivalent of 100% of its electricity demand from renewable energy by 2020. In practice, this would mean the country produces more electricity than it needs – because it would include plenty from conventional fossil fuelled power plants – enabling it to export electricity to the rest of the UK.
Of the Scottish government’s recent intervention in a dispute over cuts to wind subsidies, Salmond said it was in his interest to push the outcome of any tussle between DECC and the Treasury in DECC’s favour because of Scotland’s “huge interest in renewable investment”. With reference to energy secretary Ed Davey, he said: “Any secretary of state in dispute with the treasury needs any help he can get”. We’re not sure what kind of help he’s suggesting.
Salmond’s speech was clearly a pitch for investment – he was keen to stress a willingness to take what he called “tough decisions” on planning permission for renewable energy generation sites to ensure the UK meets its renewable energy target – of which Scottish generation will make up half.
He also laid out the stall on carbon capture and storage – claiming it was “coming into greater economic sight” in Scotland, whatever that means, as a result of investment in trials which could see carbon dioxide stored under the central North Sea. Waste carbon dioxide could also be used to enhance oil recovery off the Scottish coast, he said, underlining that although the Scottish government has been making wildly enthusiastic noises about renewables, it’s clearly not giving up on oil and gas just yet.
A partial transcript of the speech is available on the Scottish government website.