The Scottish Energy Association (SEA) is the membership organisation for the energy industry in Scotland. SEA supports power & energy organisations working in Scotland, across the UK and internationally and is dedicated to strengthening commercial ties and ensuring the best possible opportunities for businesses involved across the energy supply chain.
Our members work on energy from fossil, nuclear, renewable sources and unconventional gas. Representing some of the industry’s leading players, we assist our members in offering an informed voice on energy matters to legislators, regulators, decision makers and the media.
Since the general election our members have experienced some very significant changes caused by the government’s change in approach to renewable energy. This causes wider uncertainty over energy policy in the UK; this reduces confidence in the sector, which in turn increases costs.
The SEA would request that you continue and expand upon the interaction you have with the energy industry, with the aim of creating a clear strategic view of the UK’s future energy mix, considering all forms of generation available, the costs to consumers and the need to deliver emissions reduction targets for 2020 and beyond.
In the immediate term, there is an urgent need for the government to give greater confidence on implementation of the Renewables Obligation grace periods: our members are investing many millions of pounds in good faith that your proposed grace period requirements of 18th June will be honoured.
The delay to this element of the Energy Bill is causing yet more financial uncertainty to an industry that supports 19,000 jobs in the UK.
Beyond the RO we would also support a move to revenue-stabilisation. Given the deflated wholesale price of electricity in the UK, some form of financial support must be given for any new generating capacity: we consider revenue-stabilisation to be the most cost effective and technology neutral proposal at this time.
This mechanism should be available for onshore wind (and other forms of electricity generation as appropriate) to reduce costs to the consumer whilst enabling a diverse generating mix in the UK.
As part of your ongoing industry dialogue we would be pleased to meet with you and your officials to discuss these issues further.
Yours sincerely on behalf of the Scottish Energy Association,
Hector Grant Chief Executive, Scottish Energy Association