Scottish independence: The real reason for SPR’s delay for Tiree Array ?
Below are extracts of Peter Atherton’s evidence to the Commons Energy and Climate Change Committee’s scrutiny of the impact of potential Scottish independence on energy and climate change. The Committee met on Tues 24th April 2012
Peter Atherton is head of European utility sector research at Citigroup Global Markets and the author of a controversial Nov 2011 report addressing the independence issue and Scottish Government’s Renewable policy .This NOV report suggested that an independent Scotland would “probably not” be able to support a large-scale renewable energy industry, and offered,in Nov 2011 , this emphatic view on the development of Tiree(Argyll) Array;
We would be very surprised if Scottish Power /Iberdrola were to go ahead with the Argyll Array until the constitutional position of Scotland within the UK was settled
Alex Salmond ridiculed this Nov report
Mr Atherton advised the committee :-
- “All” of the investors he had spoken to had decided to halt investment on their offshore wind projects until the post-referendum regulatory regime was settled
- It was “questionable” whether the current UK-wide renewables subsidy would continue if Scotland seceded.
- Investors “cannot and will not make these investments” without the guarantee of ongoing subsidies “
- Current investments were “small-ticket items”, inadequate to realise Scottish Government’s “big plans”
- “From the corporates who are involved in investing in offshore wind, particularly in Scotland, that we have been talking to in recent months, all of them have said to us: ‘We will not progress with offshore wind projects in Scotland until such time as we gain that certainty’.”
CITI group has a client relationship with Iberdrola, SPR’s parent company