Renewable energy suppliers to get bigger Scottish subsidies
Producers of wave and tidal energy in Scotland are to get bigger subsidies under proposals published today by the Scottish Government.
The cost is said to be less than 40p a year on average domestic electricity bills on top of the £12 a year the scheme already costs.
The proposals announced by energy minister Jim Mather would introduce a banding scheme to the complex subsidy scheme known as “renewable obligation certificates”.
Under the system, electricity suppliers have to use green power sources like hydro or wind for 9% of the power they supply to Scottish customers, rising to 15.4% in 2015.
The industry regulator, Ofgem, issues certificates to green energy generators, who sell these to the suppliers.
Suppliers can then use their certificates to show they are meeting the obligation, and can also pay cash into a fund which creates more ROCS.
At present generators receive one ROC, worth around £47, for every megawatt-hour they provide.
Under Mr Matter’s proposals, this value would vary between different types of green energy.
Established technologies like hydro and onshore wind farms would continue to receive one ROC per MW-hour, but tidal power would attract three ROCs and wave power five ROCs, provided they are not already receiving government subsidies.
Mr Mather said the changes would boost investment and create new jobs in those technologies.
“The changes we propose give Scotland a lead over other parts of the UK – we are taking every opportunity to make Scotland the place to develop, test and generate electricity from our huge natural resources,” he said.
“In doing so we can create a new, world leading industry here in Scotland while taking a global role in tackling climate change and reducing emissions.”
19 September 2008
Tags: Wind power, Wind energy
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