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Ewing warns of risk to energy jobs

03:25, Feb 21 2013

 

Offshore wind energy jobs are "at risk" because of mixed policy messages from the UK Government, according to an SNP minister.

Electricity market reforms lack measures to give investors confidence beyond the end of this decade, energy minister Fergus Ewing said before a debate on the issue at Holyrood.

"Offshore wind has reached a watershed," he said. "The industry has enormous potential and to realise this potential it is essential that investors have confidence. Over the past weeks I have spoken to many potential investors who say the uncertainty surrounding electricity market reform is starting to affect their investment decisions."

UK ministers should set a 2030 electricity decarbonisation target now, not as planned in 2016, he said.

Mr Ewing spoke as MSPs prepare to debate a Holyrood committee report on whether Scottish renewable energy targets can be achieved. The report, published last November, found the targets can be met if action is taken on "crucial" issues.

Areas such as improved access to finance and skills development are essential to the SNP administration's aim to meet current electricity needs by 2020, according to the Economy, Energy and Tourism Committee report.

On finance and subsidies, "significant" investment is required, particularly because of a "reluctance" by banks to spend money. Skills shortages were identified as a risk, especially in science, technology, engineering and maths at all levels of education. Infrastructure presents "challenges", with islands at a disadvantage with higher transmission charges.

A Scottish Government heat target is at risk of not being met by 2020 because of delays to incentives, controversy around biomass plants and "hurdles" linked to district heating schemes, the report added.

MSPs on the committee also considered tourism, concluding that no witness provided "robust, empirical evidence" that there is a negative impact from renewable projects. That finding contradicts the view of US businessman Donald Trump, who declared himself a "world-class expert in tourism" during a committee hearing in April.

He gave dire warnings about the future of Scottish tourism if developers continue to build turbines on and off shore, including near his golf course in Aberdeenshire. In other areas, the report found that council planning departments are under pressure with high volumes of applications and steps should be taken to harness the potential of local projects in communities.

 

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