SCOTLAND’S renewables sector is in “crisis” as UK Government cuts force the eco-industry into decline, it has been claimed.
Andrew Lyle, founder of Edinburgh-based developer, contractor and consultancy agency Locogen, says his firm has suffered losses as a result of a downturn triggered by Westminster policy. This includes the end of the Feed-in Tariff (FiT), a subsidy brought in to incentivise the uptake of small and medium-scale wind, solar and hydro technology.
The tariff – which paid out for energy used and any excess which could be exported to the grid – is expected to close to new applicants in April.
Industry body Scottish Renewables has called on the Department of Business, Energy and Industrial Strategy (BEIS) for clarity over the change.
But while it considers its position, Lyle, pictured below,says some Scots firms – particularly those specialising in just one service – now face a battle to survive.
The capital firm – which has a French subsidiary – had to cut its own solar team as a result of plummeting demand after significant FiT cuts. Commercial solar panel installations dropped by 97% between 2015 and 2017 as Westminster began to phase FiT out, with an 80% fall in wind installations.
And while a shift towards renewable heating could provide major opportunities for the sector, he told The National that lack of Holyrood strategy means Scotland is falling behind England. The comment came as the Scottish Government prepares to open a call for evidence about low-carbon heat in off-gas grid areas, which will take place in the new year.
Lyle said: “The industry is already in crisis. FiT has been brilliant for commercial and domestic renewables. It has allowed groups and communities the opportunity to build, own and operate their own projects, which has brought income into rural areas. It has allowed farmers and agricultural businesses to diversify.”
On the “storm” facing businesses, he went on: “There are two ways to weather the storm. One is to spread yourself wide across multiple low-carbon technologies and the other is to focus on services that aren’t as vulnerable to political views.”
Lyle said renewable heat presents major opportunities, but that a lack of Holyrood focus on this, including district-wide schemes, means London in particular is overtaking Scotland.
Calling for a target date to end the fitting of fossil fuel boilers, tighter building regulations and tougher energy efficiency rules to encourage uptake, Lyle said a soft loan or grant scheme should be introduced to help. He said: “The Scottish Government has been very slow on this and the UK Government has overtaken it. They say they don’t have the powers, but London is doing a lot. The Scottish Government has been dithering for six years.”
The Scottish Government said: “Scotland is in fact leading the way in the UK on renewables – and this is widely recognised to be the case. Last year 69% of all electricity consumed in Scotland was generated from renewable sources. We remain highly ambitious – and we have announced that the equivalent of 50% of all of Scotland’s heat, transport and electricity consumption will be supplied from renewable sources by 2030.”
BEIS said: “The FiT scheme is funded through levies on suppliers, and, ultimately, consumers pay—regardless of whether or not they directly participate in the scheme.”
Fabrice Leveque of industry body Scottish Renewables said: “Weaning Scotland off dirty fossil fuel heat is absolutely crucial if we’re to meet our ambitious climate change targets.”
Scheme generates more than power
Hannah Smith, senior policy manager at Scottish Renewables, explains the benefits of the Feed-in Tariff (FiT)
Before 2010, the generation of electricity was the preserve of large fossil fuel power stations.
FiT changed all that. The scheme, and the technologies it supports, gave consumers, at last, the opportunity to make their own power. The economy of rural Scotland grew with the help of the FiT, with additional income to rural businesses, such as farms, boosting their viability and in turn creating jobs and local investment.
Communities across the country have benefitted from the installation of renewable energy projects, with Applecross, Gigha and Eigg just the most well-known examples.
And it’s not just clean energy which these projects have generated, they’ve also helped Scotland build the skills that will be vital as the world transitions to a clean energy future.
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