DECC delay ‘could cause damage to renewables industry’

A further delay by the UK government in providing clarity on support for renewables could “cause damage” to the industry, according to energy minister Fergus Ewing.

The Department of Energy and Climate Change (DECC) has postponed “vital” announcements on Contracts for Difference until at least the autumn.

DECC has previously committed to publishing information on the availability of support to the offshore wind industry and projects on the Scottish islands in July.

The department announced its intention to withdraw support for new solar energy farms from April next year, saying the move is necessary to protect consumers.

The projects can take many years to complete, which is why investors require certainty for those projects which are expected to commission around the end of the decade.

Mr Ewing said the announcement will “prolong uncertainty for the renewables industry in Scotland”.

He added: “The UK government promised that they would end the lack of clarity about the future of renewables, that they would deliver a clear statement of policy towards 2030 and how they will maintain and achieve their climate targets.

“They have decided to delay the announcement which was promised for this month for an indefinite period, and I fear that that will directly affect jobs and investment Scotland. These would include not only jobs in the offshore wind sector itself but also in related sectors such as fabrication.

“There are also over three thousand jobs dependent on solar, these and thousands more in other types of low carbon renewable energy in Scotland are now under threat.

“The low carbon energy industry has made a lot of progress in reducing costs and is well on its way to doing without financial support but today’s announcements will slow the pace of cost reduction.

“We have many consented offshore and island renewables projects, and people in our islands communities who have been promised clarity by the UK government this month will once again be left frustrated.”