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19/06/2015

Meeting Held After UK Government Renewables Decision

The Energy Minister Fergus Ewing has met with industry representatives from the renewables sector today 19 June.

Mr Ewing met with the Inverness Chamber of Commerce and industry representatives including Energy North, Falck Renewables, RES and E.On.

The meeting took place following an announcement by the UK Government to end onshore wind subsidies.

The Department of Energy and Climate Change has stated its intention to cease the Renewables Obligation for onshore wind from April 2016.

The Scottish industry reacted badly to the announcement, claiming the decision 'could cost £3billion investment in Scotland'.

Following the meeting, Mr Ewing said: "The decision taken by the UK Government to close the Renewables Obligation early for the onshore wind sector will have a negative impact on the renewables industry in Scotland and potentially on the thousands of people who work in it.
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"There are many communities and companies who have invested significant amounts of money in renewables scheme and have now found the goal posts have been moved.

"The industry has been working hard to drive costs down over recent years and making onshore wind one of the most cost effective renewable energies and this decision puts this hard work and progress in jeopardy.

Mr Ewing continued, stating the Scottish Government remains committed to the renewable sector, hoping to achieve its target of 100% of its electricity demand through renewables by 2020.

Stewart Nicol, chief executive at Inverness Chamber of Commerce, commented: "Inverness Chamber of Commerce arranged this discussion to give Highland business stakeholders the chance to share their concerns with Mr Ewing, and discuss a response to Westminster’s plans to cut subsidies for onshore wind.

"Given the contribution renewable energy development makes to the Highland economy in terms of supply-chain contracts, community benefit, skills development and investment, it is hugely concerning that Westminster has moved to progress these plans ahead of schedule."

Gordon MacDougall, Managing Director - Western Europe, RES, said: "Onshore wind stands on the verge of being able to compete on a purely commercial basis with other, more mature, forms of energy generation without requiring new subsidies in the 2020s - and it would be in no-one's interests for this important opportunity to be squandered.

"Stable and supportive policy across the UK is the key stepping stone to this subsidy free future."

(LM)

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