A leading international investment bank has found that investment in Scotland's booming renewable energy sector will continue, whatever Scotland's constitutional future, including under independence.
A new report by Altium Securities on renewables highlights Scotland's leading role in the green energy sector and finds that 'Without Scottish based renewables, the rest of the UK would be required to build far more Megawatts of renewable energy (most likely wind) to achieve its climate change objectives.'
It also finds that:
- Scotland can be the lowest cost generator of wind energy in Europe, as higher capacity wind farms in Scotland can generate electricity more cheaply than the rest of the UK and most of Continental Europe;
- Scotland's wind energy resource is 78 per cent of the UK, and without Scottish based renewables, the rest of the UK would be required to build far more renewable energy to achieve its climate change objectives;
- Due to England's low wind speed and high urban density, the cost of meeting UK emission reduction targets would be more expensive without renewable electricity from Scottish;
- For the UK to expose itself to greater energy dependence from the Middle East and Russia would be too great a risk and locally supplied clean energy would almost certainly be treated as a priority;
- Mainland Europe, in particular Germany, would be a ready buyer of zero emission energy;
- Nuclear energy does not provide a viable alternative in terms of cost, risk and return, or meeting carbon reduction commitments.
Energy Minister Fergus Ewing said:
"This is a balanced and considered report. Altium recognises the importance of Scotland in Europe's energy future and foresees, as we do, that comparatively cheaper and more efficient renewable energy from Scotland will play a key role in reducing emissions across the UK.
"This report makes it clears that investment will continue whatever Scotland's constitutional status, including under independence - that is the view in the international markets, and a common view among those who actually buy the energy. It also demolishes nonsensical claims made recently - the fact is there will be a continuing need for Scottish renewable electricity to be exported to help keep the lights on in the UK.
"International corporations and domestic firms are investing for the future in Scotland's world leading renewables industry. There is a pipeline of 17 Gigawatts of renewable electricity projects, nearly three times peak Scottish demand, with total estimated capital investment of £46 billion, ready to create thousands of new jobs in Scotland. For as long as the wind blows and the tides turn, that investment will continue."
The Altium Securities report can be viewed at: http://www.capmarkets.com/ Altium Securities is a trading name of international investment bank Altium Capital Limited which operates across Europe.
