The Scottish Affairs Committee has called on the UK Government to work with the Scottish Government after a number of recent policy changes "could threaten" the industry's growth prospects.
In a new report, the Committee states key changes such as the early closure of the Renewables Obligation for solar and onshore wind, cutting support through Feed-in-Tariffs, and delaying the next round of Contracts for Difference have all damaged investor confidence in the renewables industry.
With 21,000 people employed in the sector which produces 30% of the UK's renewable electricity, the UK Government is being urged to clarify any future support which will be provided for the industry.
In addition, the Committee has asked Ofgem to investigate levelling connection costs across the UK as renewable facilities face inadequate grid connections and high transmission charges to power remote areas.
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The Committee also asks the UK Government to do more to support the improvement of infrastructure between between the Scottish Islands and the mainland.
Committee Chair Pete Wishart said: "During the course of this inquiry it has been encouraging to see how Scotland has taken to renewable energy, and now produces over a quarter of the UK's renewable electricity. This is an important sector of Scotland's economy, and also makes a vital contribution to meeting our commitments to tackle climate change. The sector's future success relies on a supportive policy framework in both Westminster and Holyrood."
"Our report was produced before recent changes to the structure of Government—the abolition of the Department of Energy and Climate Change, with its responsibilities moving to a new Department for Business, Energy and Industrial Strategy—but this change indicates a troubling shift in the Government's priorities. I hope that the Government's response to our report will go some way to allaying these fears."
Jenny Hogan, Director of Policy at industry body Scottish Renewables, added: "The Committee has highlighted the very real and bruising impacts of the sudden cuts and changes made to renewable energy policy in the last year.
"More importantly, the report reinforces that onshore wind is one of the cheapest forms of electricity generation and that UK Government decisions to bar the sector from future support are in conflict with their own aims of reducing the cost of renewables.
"The Committee's call for the UK and Scottish governments to work constructively on a long-term strategy for electricity supply is a welcome recognition of the significant role Scotland's renewables sector plays in the UK energy mix."
To view the report, visit here.
(LM/MH)
