Following the ‘No’ vote in the Scottish Independence Referendum, Nick Green, head of Savills Energy in Scotland, has warned that while the result provides a degree of clarity, there is still a great deal to be done to deliver much-needed certainty to the energy sector.
“The promise of new powers for Scotland may have helped to secure a no vote, but their unspecified nature means months of negotiations are likely to continue to muddy the policy waters” Mr Green said. “In addition, the fact that there is an election in 2015 means that divergence on energy policy by the political parties will create even more risk at a time when everyone in the industry wants a clear roadmap in order to deliver the long term security of supply, and achieve renewables and carbon reduction targets.”
Mr Green added that even without political change tariff reductions have been forecast for all technologies and scales under the planned degression to FIT rates in October and again in Spring 2015. The shift from Renewables Obligations Certificates (ROCs) to Contracts for Difference (CfDs) will also have an impact on project capacity, budget and the re-evaluation of financial models - all leading to decisions about project viability.
The result of the referendum does not change the continued need to invest in new, clean sources of energy generation to meet current and future demand. Those planning energy projects in Scotland should take advice on how best to implement projects to optimal commercial advantage in this evolving policy landscape.
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