Ahead of the upcoming Autumn Statement, Scottish Renewables – the prominent industry body which represents around 330 organisations in the clean power and heat sector – submitted a letter to UK chancellor Jeremy Hunt. 

The letter was penned by the chief executive of Scottish Renewables Claire Mack, who emphasised the pressing challenges posed by high inflation and capital costs within the energy sector. These are exerting pressure on clean energy projects and the associated supply chains, says the letter. 

The development costs are keenly felt in Scotland as offshore wind farms are up to 20% more expensive than ones in English waters. This difference is primarily attributed to outdated Transmission Network Use of System charges, which are fees imposed on electricity generators to cover the costs associated with using and maintaining a high-voltage transmission network. The future projections announced by the Electricity Systems Operator are ‘catastrophic’, Mack urged.

The letter suggests reforms to the Electricity Generator Levy, which they argued had been applied indiscriminately to companies that were not making substantial profits. Additionally, the industry body urged increased spending to upgrade Scotland’s ports to reap the benefits of offshore wind projects.

The industry body also called for the establishment of a financial mechanism to support the development of pumped-storage hydropower in Scotland. According to them, the move could create nearly 15,000 jobs and generate up to £5.8 billion for the UK economy by 2035. 

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“Our industry is increasingly under threat from international competition for the supply chains, financing and skilled workers needed to build a net-zero economy,” said Mack. She argued the UK is lagging behind the US and EU which have developed plans to attract critical private investments for a clean energy transition away from the UK. 

“We cannot afford to forfeit the UK’s global advantage as an early mover in the race for clean, cheap energy,” she said. 

“Timely and decisive action is therefore urgently required to create the stable policy environment essential for building long-term, international investor confidence in Scotland and the UK’s renewable energy industry.”