More than £10billion of investment is needed to help Scotland meet a key renewable energy target in just 10 years, a report said yesterday.
The Scottish Government wants 50% of the country‘s electricity to come from renewable sources by 2020.
But the report, by PricewaterhouseCoopers LLP, pointed out that energy regulator Ofgem had already estimated £33billion of investment was needed in offshore wind across the UK to meet power generation targets.
It said a “significant proportion” of this, more than £10billion, would be required in Scotland. It also warned that without an “enormous increase” in investment in the infrastructure for renewables and “significant” technological development, there was a “very real risk” targets for cutting emissions by 2020 and 2050 would not be met.
Holyrood has already passed legislation committing Scotland to cutting emissions by 42% by 2020 and by 80% by 2050.
Paul Brewer, a renewables specialist at PricewaterhouseCoopers, warned the funding gap was “undoubtedly a critical barrier to meeting Scotland’s 2020 renewables target”. He said the £180million-plus in the fossil fuel levy fund “could be used to help establish significant centres of production” for renewable energy. Currently only about 4,500 people in the UK are working in the renewable energy sector, but the report said the industry could support up to 342,000 by 2050, with the opportunity for a “significant proportion” in Scotland.
But it warned there was no guarantee that “significant employment” would be created north of the border.
A government spokesman said the country was “well on the way” to meeting the target of having half of all energy from renewables by 2020.
He said: “This report acknowledges Scotland’s enormous competitive advantage for offshore renewables – potential that was recently estimated could power Scotland many times over and create £2,700 for every man, woman and child by 2050.
He also said the Holyrood administration was continuing to press the UK Government for access to the cash in the fossil fuel levy.