Utility Week

Scottish referendum OUT F or decades, successive Westminster governments have, sadly, failed to take a coherent approach to energy. There has been much uncertainty in the industry, with 14 energy ministers in the past 17 years. With a country of Scotland's energy wealth, it is surely unacceptable that so many consumers face rising prices and con- tinuing fuel poverty. Westminster energy policy has been inef- fective. This has led to the unprecedented challenge to secure supplies, with Ofgem analysis showing capacity margins across the GB grid could fall as low as 2 per cent in just two years' time. This contrasts sharply with the situation in Scotland, where mar- gins are in the region of 20 per cent. Scot- land's renewable and thermal generation therefore play a vital part in UK energy secu- rity, as a range of respected industry experts and academics have said. And our energy exports play an even bigger role. Put simply, England needs Scotland's electricity supply to keep lights on and industry powered. The GB capacity margin of between 2 and 5 per cent also means prices are higher because of simple laws of supply and demand. It is a scandal that there should be any fuel poverty in an energy-rich nation such as Scotland. With the powers of independence, we will tackle that anomaly, including meas- ures to make a permanent and ongoing cut in household energy bills of £70 a year, by removing the costs of the Warm Homes Dis- count and the Energy Company Obligation from bills. We are also leading the development of an exciting new renewables industry. Scotland's clean energy underpins the UK's renewable energy and climate change targets, with Scotland providing 32 per cent of UK renewable electricity in return for 28 per cent of the total UK subsidies. By 2020, we could provide more than 50 per cent of the 29GW necessary to meet UK's legally binding EU renewables targets. We all know Scotland is rich in energy with about 25 per cent of Europe's o" shore wind and tidal energy potential, but we are keen to expand our manufacturing base and maximise the manufacturing opportunities of our o" shore energy potential. I recently announced consent for two new adjacent o" shore windfarms in the Moray Firth, which together will be the world's third-largest o" shore windfarm. Orkney's European Marine Energy Centre has the world's – rst grid-connected, accredited test facility for wave and tidal technology. In an independent Scotland we will con- tinue to be a part of the GB-wide market for electricity and gas. But as a substantial supplier to the rest of the UK, an independ- ent Scotland will have a far greater degree of oversight of the market arrangements for energy and – rmer safeguards over Scot- tish energy security. We plan to establish an energy partnership with Westminster, which will ensure Scotland's long-term interests are better served and that we jointly steer the approach to the energy market. A— er independence we would introduce a leasing system for o" shore renewables designed to increase investment and pro- duction while replacing the Crown Estate Commissioners. We will continue to support research and development in renewables and low-carbon technologies. In an independent Scotland we will sim- plify the regulatory landscape to one that is more appropriate for a country of our size. We'll bring together economic regulatory functions in the vital sectors of communica- tions, energy, transport and water into one combined economic regulator. This means consumers can bene– t from having a more powerful regulator acting on their behalf and the industry will bene– t from dealing with fewer regulatory bodies and from greater stability and consistency. To me, it is clear the UK government's management of energy policy has added to energy uncertainty at the very time when certainty is needed to continue to attract investment in new plant as capacity con- straints bite. The value of renewable energy to Scot- land's economy is clear and our commitment to harnessing Scotland's energy wealth – both onshore and o" shore, and in the right locations – will ensure that renewables continue to provide low-carbon energy sup- plies as well as jobs, investment and oppor- tunities for Scotland's communities long into the future. Only with the full powers of inde- pendence will we be able to harness Scot- land's full energy potential. Fergus Ewing is an SNP MSP and minister for energy, enterprise and tourism Nov '13 Jan '14 Mar '14 May '14 Jul '14 UTILITY WEEK | 1ST - 7TH AUGUST 2014 | 11 An independent Scotland can reach its potential, says Fergus Ewing, Scottish energy minister.

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