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Liberal Democrat Conference 2009: Energy and Climate change
September 22, 2009 12:00 AM
By George Lyon MEP in the Liberal Democrat Conference, Bournemouth
By George Lyon MEP in the Liberal Democrat Conference, Bournemouth
Scotland has the potential to lead Europe in the production and use of renewable energy. Of this there is no doubt.
Whether its wind, wave, tidal or the prospect of carbon capture and storage technology, Scotland's strength lies in its diversity.
There is no limit to our ambition. There is no limit to what we can and what we will achieve.
Scotland's potential contribution to overall European renewable energy production is significant.
We have estimated that Scotland could account for 25% of the total capacity for the EU with regard to wind and tidal power. It is estimated that wave power can contribute a further 10%.
Scotland can be Europe's energy powerhouse.
But, for Scotland to reach its full potential there must be a level playing field for energy producers north of the border. We must work to end the discrimination that currently exists against the renewables sector in Scotland.
OFGEM has for too long operated a pricing structure that forces energy producers to pay higher charges the further they are away from the so-called "market place". This leads to electricity generators in Scotland paying considerably higher charges than others further south.
This is particularly true in rural and remote areas. The cost of accessing the grid remains one of the biggest obstacles to be overcome by renewable energy companies in the Highlands and Islands.
It is staggering that those communities who are at the coal face of renewable energy in Scotland are penalised simply due to geographic location.
They are being held back by the pricing regime operated by an organisation whose first priority is profit and not the promotion of renewable energy.
We must invest both time and money in localised renewable energy hubs where the benefits of the energy produced are passed directly on to local communities.
Why waste energy pumping it directly to a national grid for it only to come back, but at a much higher price?
It is nonsensical and must end.
The European Commission has just introduced the Renewables Directive. I hope that this will be the catalyst for change. In the past there has been some amount of confusion over the legal powers available to the Commission but now we can act decisively and directly against OFGEM and force them to change their pricing structures.
If we reverse this policy, if we end the discriminatory practices of OFGEM then Scotland can be at the heart of our renewable energy ambitions now and in the future.
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