Onshore Wind brings substantial economic benefits

Posted on May 15, 2012 by admin

A new report, produced jointly, by the Department of Energy and Climate Change (DECC) and the industry trade body RenewableUK has studied in-depth the impact of onshore wind upon both local economies and the national economy.

The report examined 18 wind farm sites of different sizes from across the UK. The contribution made by wind farm development, construction, operation and maintenance to the British economy was observed at local, regional and national level.

It was found that the total onshore wind market was worth £548 million to the UK economy in the year 2011 alone. Additionally, over 9,000 jobs were supported by the industry. Perhaps even more interestingly, it was found that for every megawatt of onshore wind capacity installed in the UK £700,000 was added to GDP. Over £100,000 of which remains within the Local Authority area that the development is located.

If the UK was to achieve the target of 13GW of installed onshore wind capacity by 2020, set out in the Renewable Energy Roadmap, then the contribution to annual GDP would rise to £780 million and approximately 11,600 jobs would be supported. A figure which rises to 15,500 if ancillary jobs are included. These figures would then suggest that onshore wind is already making a major contribution to the British economy, particularly at a local level.

UK Energy Minister Ed Davey described onshore wind as “a cost effective and valuable part of the UK’s diverse energy mix”, at the publication of this report, going on to say further:

“Not only does wind power provide secure, low carbon power to homes and businesses, it supports jobs and brings significant investment up and down the country too.

“Our policies of increasing community involvement will also help to ensure the right balance between developers and community interests.

“With the cost of the technology coming down, there is a real opportunity to reap the economic benefits onshore wind can bring.”

Perhaps most interestingly, it was found that one of every three local jobs created by onshore wind developments is in the operation or maintenance sector.

Which is to say that these are long term jobs in the local area. This sort of job creation is of particular importance to Local Authorities and is very much a consideration in planning decisions.

The question of the supply chain is also raised in the report; specifically how much of the work required for onshore wind developments is carried out within the UK. It is found that many of the 8,000 components required to manufacture a turbine are, or could be, produced within this country, reaching the conclusion that; “many activities relating to the development of wind farms are already carried out by UK based businesses. As the sector develops, there are likely to be opportunities to increase this activity.”

The reports findings were greeted by RenewableUK’s chief executive Maria McCaffrey:

“This study explains why in rural areas 68% of people support wind, and 57% of those living in rural areas recognise that wind brings benefits in terms of jobs, 12% more than those in urban areas.

“Rather than feeling that wind has been imposed on them, real people across the UK are recognising the benefits of having wind in their backyard, and with Government’s help we’ll continue to build on the 8600 people employed across the country because of onshore wind, as promised by our members in the “Wind Energy Charter“.

…

“Whilst we can see that with increased deployment comes both increased value and jobs added, plus an increase in market share for the UK, if we were to only see 10GW come forward jobs will actually be lost in the development and construction phases, and there will be no increase in our market share. So it’s therefore essential for UK growth and employment to keep onshore wind progressing and revitalising communities.”

It could be argued that as the economic benefits of onshore wind become more apparent they become more difficult to refute.

Good News for Scottish Renewables Industry

Posted on April 2, 2012 by admin

There was much good news for the Scottish Renewables Industry this week; not only was it revealed that Scotland’s interim renewable energy generation target has been surpassed but also a report was published which revealed the impact the fledgling industry is having on the country’s employment levels.

The Scottish Government had set a target for 31% of the country’s electric energy demand to be met by renewables by this year; currently renewables are providing 35% of the electricity used in the country. The 35% figure has been achieved by an increase in installed capacity in a variety of renewable technologies. For instance, in 2011 there was 7049 GWh (Giga-watt hours) of electricity produced from wind turbines. This was an increase of 45% from 2010 and more than double the amount generated from wind in 2007.

Hydro-electricity also saw it’s best ever year for electricity generation; producing 5310 GWh of energy. This was an increase of 62.6% from 2010 although it should be noted that 2010 was a year of comparatively low rain fall. However it was still an increase of 8.9% compared to 2009 levels; 2009 was hydro-electricity’s previous best year.

The news that the interim generation target had been surpassed was greeted with much enthusiasm. Scottish Energy Minister Fergus Ewing remarked:

“It’s official – 2011 was a record breaker, with enough green electricity being produced in Scotland to comfortably beat our interim target. And Scotland met almost 40% of the UK’s renewable output in 2011, demonstrating how much the rest of the UK needs our energy. We are seeing great progress towards our goal of generating the equivalent of 100% of Scotland’s electricity needs from renewables by 2020.

“Projects representing £750 million of investment were switched on in 2011, with an investment pipeline of £46 billion. And since the turn of the year, we have seen Gamesa invest in Leith creating over 800 new jobs, the Green Investment Bank being head-quartered in Edinburgh and Samsung Heavy Industries announcing it will base its £100 million European offshore wind project in Methil, creating up to 500 jobs.

“Alongside securing those major developments, we have taken real steps to ensure that communities all over Scotland will benefit from the renewable energy generated in their area.

“Scotland is a genuine world leader in green energy and our targets reflect the scale of our natural resources, the strength of our energy capabilities and the value we place on creating new, sustainable industries.”

Niall Stuart, chief executive of Scottish Renewables:

“This is a fantastic achievement for our industry and for Scotland.

“When the interim target of 31 per cent was set it was seen as ambitious but yet again the renewables sector in Scotland has grown further and faster than predicted, achieving 35 per cent, and that’s why we are confident we can meet the 2020 target.

“These figures are further proof that this industry is a major part of our energy sector. As well as supporting 11,000 jobs in Scotland and helping attract massive investment, renewable energy is now delivering more than a third of the electricity consumed by Scottish households and businesses.

“Renewables is now a major part of our energy mix and a major part of our economy, and the sector is making a key contribution to the fight on climate change. Last year the sector displaced over 5 million tonnes of CO2 – around 10 per cent of Scotland’s total carbon emissions.

“There are many challenges ahead if we are to keep growing. Government must continue to focus on delivering grid connections, getting the right balance in the planning system, and supporting investment in clean energy. By doing so we will make further progress in cutting emissions and securing more jobs for the future.

Stan Blackley, chief executive of Friends of the Earth Scotland: “Our research has shown that, with some modest investment in energy efficiency and demand reduction, Scotland could produce 130% of its electricity demand from renewable sources by 2020 and 180% by 2030. In doing so we could ensure a reliable supply of clean electricity and phase out Scotland’s thermal power stations.”

In other news, Scottish Renewables released a report detailing the number of jobs that the Scottish Renewables industry is currently supporting.

In total there are around 11,000 people in Scotland employed in jobs supporting the renewables industry. The majority of these jobs are in the direct supply chain; 8701 to be exact. 1526 people are directly employed in renewable energy development and a further 909 people are employed in academia and the wider public sector. When broken down by sector onshore wind is the largest employer with 2235 employees; 943 are employed in offshore wind, and 1410 are employed in bioenergy. A further 3223 are employed in the National Grid and it’s supply chain.

Niall Stuart, chief executive of Scottish Renewables issued the following statement to accompany the report:

“The report shows that renewables are not only a major part of our energy mix, they are now a major part of our economy and our daily working lives, supporting more than 11,000 jobs across Scotland.

“The report also highlights that for every job in renewable energy development, there are around six more in the direct supply chain.

“These numbers are actually just the tip of the iceberg, with many thousands more employees supported indirectly by the growth of the renewables sector which have not been captured by this study.

“Renewable energy development is bringing in much needed investment to the wider economy, which is providing opportunities for businesses and people from a wide range of sectors; whether it be electricians, tradesmen and skippers of work boats, or lawyers, consultants, civil engineers and architects.

“These jobs are spread throughout the country, in both urban and rural areas: Glasgow, Fife and Edinburgh are already established as important centres for offshore wind development; Aberdeen is a major centre for offshore engineering; the Highlands and Islands are leading the development of the emerging wave and tidal sector; and bioenergy is providing jobs across rural Scotland from Lochaber to Morayshire to Dumfries and Galloway.

“A clear pattern emerges from speaking to employers that these numbers are expected to grow over the year ahead and beyond, as the relatively new industry continues to expand. Gamesa’s decision last week to come to Leith reinforces the scale of this opportunity.

“As a growth sector, it also offers new opportunities for the existing workforce and business base in parts of the economy which have been hit by the downturn.

“With continued political support, the right market framework, the right balance in the planning system, and investment in grid and ports and harbour infrastucture, we will ensure the creation of many thousands more jobs in this exciting sector.”

The announcements made this week demonstrate the great strides being made by the Scottish Renewables industry in terms of attracting investment, creating jobs and generating ever greater amounts of electricity.

Chris Huhne comes out fighting for Renewable Energy

Posted on October 28, 2011 by admin

Chris Huhne’s speech to the RenewableUK Conference

“Our location is rather appropriate. Manchester was the thumping heart of the industrial revolution. This was the world’s first industrial city. It is home to the first industrial canal, and the world’s oldest railway station.

The foundations for our prosperity were laid here. The engines which drove Britain’s extraordinary economic growth were built here – from the spinning mule to the steam engine.

We could not have picked a better place to discuss their modern equivalents.

Revolution

Renewable energy technologies will deliver a third industrial revolution. Its impact will be every bit as profound as the first two. My argument today is a simple one: the revolution has already begun.

From the Western Isles to the Isle of Wight – across the length and breadth of Britain. New companies are creating new jobs, delivering the technologies that will power our future.

As we look to pull ourselves out of recovery and back to prosperity, renewable energy can light the way.

Today, I want to look at the contribution renewable energy is making to our economy right now. The investment it is sparking, the jobs it is delivering, the growth it is creating.

And I will look at what we can to do encourage that growth – and sustain those jobs.

But first, I want to take aim at the faultfinders and curmudgeons who hold forth on the impossibility of renewables – the unholy alliance of climate sceptics and armchair engineers who are selling Britain’s ingenuity short.

“Renewables are too expensive”, they cry. “They cannot deliver energy at scale.

“They are uneconomic, unreliable and unwanted.”

It is time to retire these myths.

Money

Let us start with the most egregious: that renewables are too expensive; that they could not exist without public subsidy; that they are held up by government cash alone.

Last year, global investment in renewable energy rose by 32% to $211 billion. And $142 billion of that was new financial investment, which excludes government and corporate R&D.

Renewables are grabbing a large and growing share of new energy investment.

Yes, some of that investment is attracted by public subsidy. But globally, subsidies for fossil fuels outstrip subsidies for renewables by a factor of five.

We subsidise renewables to bring on deployment and reduce costs. And we’ve seen some remarkable successes.

Right now, support for renewable energy costs the average household less than sixpence a day. But decades of underinvestment in energy efficiency and reliance on fossil fuels costs us much, much more.

About half of the average household bill goes on wholesale gas and electricity costs. These costs are highly volatile, and as Ofgem make clear, the higher gas price is the real reason bills have been going up over the past eight years.

That is why we need a flexible energy portfolio.

And that’s where the counter-argument of the climate sceptics falls down. “Forget wind farms”, they say. “Shale gas will be our saviour. We should abandon everything else.”

I don’t believe government should pick winners. And if you do, I refer you to a Department of Trade and Industry white paper from 2004 that estimated oil would reach $23 per barrel by 2010. Even last year my own Department forecast oil at $80 per barrel. Brent crude is currently trading at $110 per barrel.

Lashing our economy to a single energy source is a risky business.

We don’t yet know the full extent of shale gas here; how economically or environmentally viable it will be to extract, or by when. At best, it is years away.

Unconventional gas has not yet lit a single room nor cooked a single roast dinner in the UK.

Yet those who clamour loudest for “realistic” energy policies would have us hitch our wagon to shale alone. Shale gas may be significant. It is exciting. But we do not yet know enough to bet the farm on it. Faced with such uncertainty we do what any rational investor does with their own pension fund – we spread our risks, we have a portfolio.

Capacity

The second fallacy is that renewables cannot deliver energy reliably or at scale.

But today, more than 10 gigawatts of our electricity capacity is renewable. That’s enough to power six million homes.

And with every passing year, renewable energy takes over another percentage point of global electricity capacity.

In 2007, 5% of the world’s electricity was renewable. In 2008, it was 6%. In 2009, 7%. And last year, 8%. And it’s still growing. More than a third of the new capacity added last year – some 60GW – was from non-hydro renewables. The message is clear: when we build new power plants, increasingly we choose renewables.

In fact, renewable energy can make our system more secure – not less. According to the International Energy Agency, renewables increase the diversity of electricity sources, making energy systems more flexible – and more resistant to shocks.

Yes, some renewable technologies are intermittent. But the Committee on Climate Change estimates that even with 65% of our energy provided by renewables in 2030, intermittency may cost just 1p per kilowatt hour.

And providing back-up for intermittent renewables is just not that expensive. We already swing from a low of demand of 40GW to a high of 80GW every day. Peaking plant has long been part of our mix. Without such backup the nation’s kettles would be cold in the Coronation St ad breaks.

Every year, renewable energy is attracting more investment and delivering more capacity. It is also gathering more support. One hundred and nineteen countries have renewable energy targets or policies – up from an estimated 55 just six years ago.

Attractiveness

That brings me to the third great misconception about renewable energy: that it is unwanted.

Earlier this year, Ipsos MORI polled a thousand UK adults on which energy source they preferred. By a clear margin, people favoured renewables.

Eighty-eight per cent of those polled viewed solar power favourably; 82% for wind, 76% for hydroelectric, 57% for biomass.

The highest placed traditional energy source for electricity was gas, at 56%.

Seventy-three per cent of people would support a new wind farm in their area, as opposed to just 21% for a new coal plant.

When you get behind the headlines, you find that support for renewable energy is strong – and growing.

And so is its contribution to our economy.

Economy

Across the United Kingdom, renewables are providing jobs, investment and growth.

And the numbers are really starting to add up.

Over the last financial year, nearly 4,500 new jobs were created in the low-carbon sector, which grew by 4.3%.

Fifty-one thousand and six hundred companies in Britain provide low-carbon and environmental goods and services. Exports are now £11.3 billion, up 3.9%.

By Christmas we will have 3GW of biomass installed, and by Easter 5GW of onshore wind. In the past seven months alone, plans for £1.69 billion of investment and 9,500 jobs have been announced.

Here in the North West, more than 950 jobs: 340 at the Siemens Renewable Energy Engineering Centre, just a few miles down the road; up to 600 over the next decade at Cammell Laird; three new Farmgen developments planned in Cumbria, with hundreds of jobs.

This is the sharp reality of green growth. At a time when closures and cuts dominate the news cycle, next-generation industries are providing jobs just as in the recovery after the last deep depression in 1929 to 1931. It is new and innovative industries that grow fastest.

Renewable energy is surging out across the United Kingdom, blazing a trail of start-ups and jobs.

Across the Pennines, in Yorkshire, 2,250 jobs – £130 million in Real Ventures’ biomass plant, employing up to 285 people.

And in the North East, more than 1,400 jobs – TAG Energy Solutions, delivering up to 400 jobs in the Billingham turbine factory.

North of the border, one of the jewels in our renewable energy crown – £160 million of new investment and more than 420 Scottish jobs.

Across the Irish Sea, 450 jobs in Belfast Harbour thanks to DONG Energy’s Duddon Sands offshore wind farm; 1,400 jobs in Wales.

In the heart of England, 100 jobs in the East Midlands – and 50 in the West; 120 in East Anglia.

Two thousand and two hundred jobs in the South East, supported by £172m – from Vestas, the Green Home Company, and more. And at Tilbury, the first UK coal plant to convert completely to biomass, safeguarding livelihoods.

Across Britain, from the industrial heartlands to the northernmost extremities, new energy technologies are delivering jobs and growth just when we need them most.

Capitalising on our geographical, physical and human advantages; Scotland’s research and natural resources. The Solent’s marine expertise. Manufacturing in the North East. Technology development in the M4 corridor.

Renewable energy doesn’t just have the potential to bring Britain’s economy back to life – it has already started.

Our job now is to allow it to really flourish. How? By setting clear and coherent objectives. And using regulation and closely targeted support to hit them.

Targets

By the end of this decade, we must cut our carbon emissions by 34% on 1990 levels. By the end of the next decade, they must be halved.

To hit our EU renewable energy target, we must generate 30% of our electricity from renewables by 2020. That means a fourfold increase in deployment – turning our back on an inheritance that ranked us as the dunce in class, 25th out of 27 EU countries for renewables.

Growth on that kind of scale will not be easy. It will require tough decisions, clear thinking, and tightly focused support.

And everyone has a part to play.

Industry must carry on making the case for renewables. Engaging with communities – and answering its critics by delivering renewable schemes that save money and save carbon.

Government must break through the barriers that are stopping new schemes being built, overcoming the financial, planning and delivery hurdles that can hold up progress on renewables.

And together we must do a better job of communicating. That means engaging with the communities who stand to benefit, and the investors who don’t yet see the promise that renewable energy holds.

We must ensure the silent majority aren’t drowned out by the vocal minority – those opposed to renewable energy in all its forms.

That means making sure communities that host renewables benefit more directly. That’s what our proposals on business rate retention are for. And that’s why we were pleased to endorse Renewable UK’s Protocol on Community Benefits.

My challenge to you today is this: keep it up. Continue to develop and publicise new ways of rewarding those communities most affected by development.

Opportunities

Because, as the report you are publishing today shows, the opportunities are simply too great to ignore.

Globally, around half a trillion dollars has been earmarked for green stimulus spending. We will need to spend a hundred times that by 2050 to hit our climate targets.

We must be realistic. The pressure on the public finances means we cannot support everything at the level we otherwise would.

So we must ensure we send clear market signals: deploying public finance intelligently, and breaking through barriers to growth.

Our starting point is simple. We have a responsibility to the taxpayer to get the most carbon and cost-effective electricity generation online…

In total, our low-carbon and energy-saving policies will reduce household enegy bills compared with a ‘do nothing policy’.

Markets

Our approach to renewable energy must encourage investment and deliver value for money for consumers.

We are doing three things to help.

First, we are using policy to create new markets that will stimulate new investment – like the Green Deal, our unprecedented energy efficiency programme. It will bring jobs, growth and opportunities right across the country.

Or the world’s first Renewable Heat Incentive. It will create a whole new market in renewable heat. Not just big industrial and commercial installations, but also homes and businesses, too.

We expect green capital investment in heat to rise by £7.5 billion by 2020, supporting 150,000 manufacturing, supply chain and installer jobs.

So the first thing we’re doing is to create new markets; the second is to make existing markets work better.

This is why we published in the summer our plans for the reform of the electricity market, which will deliver secure, low-carbon and affordable electricity.

We’ve listened to the renewables industry in drawing up the reforms. That’s why we support a contract for difference model tailored to renewables and not auctioning in the near future…

By offering certainty and clarity, we can secure the scale of investment we need. And by attracting in new investors, we will also increase competition in the UK energy market.

Benefits

Our third priority is to capture the benefits of the low-carbon revolution. That means ensuring more clean technologies are designed and manufactured here.

We have a blossoming low-carbon goods and services sector, which seems to be thriving even in tough times.

But China leads the world in solar photovoltaic panel production; Germany on energy efficient housing design.

We’re missing a trick unless we start supporting low-carbon manufacturing here in Britain – and grow the green supply chain: locking in profits and expertise, and creating the exports that will keep Britain competitive.

Yes, climate change is a manmade disaster. Yes, the UK is only 2% of global carbon emissions. But if we grasp the opportunity now our businesses and economy can be much more than 2% of the solution.

We are not going to save our economy by turning our back on renewable energy.

This has been at the heart of Liberal Democrat policy for decades and it is something the Deputy Prime Minister, the Business Secretary, and the Chief Secretary to the Treasury instinctively understand.

But this goes beyond any one party. I know the Prime Minister agrees, which is why he is putting so much effort in to securing offshore wind manufacturing in the UK. And it is something I know my predecessor Ed Miliband understands.

It is this three-party consensus that makes the UK such a good place to invest.

It wasn’t always like that. It is nothing short of a national disgrace that in the 1980s the UK lost our leading wind research position to Denmark, because government refused to support the industry.

It is a mistake I am determined that this Coalition Government will not make again.

So I can today assure you that this Government has resolved that we will be the largest market in Europe for offshore wind.

We already have more installed offshore wind than anywhere else in the world and we are determined to remain at the forefront.

That’s why we set aside £200 million for the development of low-carbon technologies, including £60m for supporting major new manufacturing projects on the English coast.

We will be the best place to invest in marine power, and we will be the fastest growing country in the EU when it comes to renewable deployment.

That’s why the Green Investment Bank has been capitalised with three billion pounds, to help unlock private sector investment at scale. For the first time ever, Britain will join every other leading developed economy in having a public development bank focused on key economic goals…

Non-financial

So from the structure of the electricity market to research funding, we’re breaking through the economic barriers. But we’re also focusing on non-financial obstacles.

We’re reforming the planning system, to ensure it’s no longer a brake on sustainable development.

The energy National Policy Statements set out the national need for new renewable energy infrastructure. We have introduced a fast-track process for consents. And we will close the Infrastructure Planning Commission and return decisions on major energy infrastructure to democratically elected ministers.

Over 1,000 pages of local planning policy for England are being replaced by clearer and more streamlined National Planning Policy Framework. And the Government will consult on measures for a ‘planning guarantee’.

We’re also working to improve grid connections. The connect and manage regime is now up and running. Network companies are now looking much further ahead in their planning and engaging more effectively with stakeholders. Together, this will help the network acts as a facilitator rather than an obstacle to renewable generation.

And a few months ago, we published the Renewables Roadmap – setting out for the first time how we will overcome barriers to deployment.

It’s a comprehensive action plan to accelerate the UK’s deployment and use of renewable energy.

Conclusion

In many ways, Britain can lay claim to be the home of renewable energy.

It is thought that the oldest tidal mill in the world once stood across the river Fleet, in London. The white cliffs of Dover looked over a tide mill that was recorded in the Domesday Book.

And 130 years ago, we connected the world’s first public electricity supply, in Godalming, Surrey.

It did not burn coal, or gas.

No, the power plant in question was a Siemens generator driven by 100% clean, renewable power: a watermill on the River Wey.

When Britain began its journey towards electrification, renewable energy was the future.

But we ended up choosing another path. This time, things will be different.

We will not heed the naysayers or the green economy deniers.

With over £200 billion worth of energy infrastructure needed by the end of the decade, this is our golden chance to deliver a greener future.”

Scottish Government Announces New Agri-Renewables Strategy

Posted on August 5, 2011 by admin

As we have covered previously on this blog there has been a growing demand for Scotland’s planning process for onshore renewable energy developments to be overhauled and simplified. A few weeks ago the National Farmers Union of Scotland wrote to the Scottish Cabinet Secretary for Finance John Swinney calling for an independent group of experts be established to deliver a ‘clear, concise and deliverable renewables strategy’. Shortly after this the agri-business magnate Maitland Mackie distributed a document entitled ‘The Real Rationale for Renewable Energy‘ to councillors, MSPs and planning officers across the country. This campaign bore fruit yesterday as the Scottish Government announced the launch of a new strategy for Agri-Renewables.

It was at the annual Black Island Show that the Rural Affairs Secretary Richard Lochhead decided to make the much welcome announcement which he stated would “ensure that land managers can benefit from the renewables revolution and unlock the green energy potential of their land”. The strategy is intended to address the four issues that have been identified as key challenges for the sector. These are:

The Understanding of the Planning System
Access to Independent Advice
Pre-Construction Costs
Connection to the National Grid

The Secretary’s speech was as follows:

“Scotland is currently experiencing a renewables revolution and I want to see farmers, crofters and land managers working with local communities to ensure they grasp the benefits for their business and the nation

“Farmers and land managers have access to our nation’s abundance of natural resources, so it is no wonder they are already queuing up to grasp the opportunities presented by renewables.

“The renewables revolution offers our farmers and land-based industries the opportunity to cut energy costs, generate new income and contribute to our low carbon future. The list of benefits is endless.

“However, we are all on a steep learning curve, and need to quickly learn to take advantage of the industry’s increasing enthusiasm. We need to get our heads around the various challenges as well as the opportunities. Issues such as funding, planning, accessing grid connections, choosing the best technology, and so on, are all topics that farmers and others wish to see addressed in a well thought out strategy. I agree that this is the way forward, and that’s why we made a manifesto commitment to make it happen.

“Working with the industry, the Scottish Government is keen to deliver a strategy that ensures our renewable potential, boosts rural development, and a more profitable agricultural sector.

“The Agri-Renewables Strategy will be developed in co-operation with industry representatives and will build on the Scottish Government’s existing renewables activity in the agricultural sector.

“Scotland has some of the most ambitious climate change legislation in the world and there has already been a great deal of innovation within the farming sector.

“In a few years’ time I hope every farm in Scotland is benefiting from renewable energy in some shape or form. If we can make that vision reality, then that will be truly transformational.

“I look forward to having the new strategy in place by summer next year at the latest.”

The announcement has been welcomed by the NFU Scotland, who in a statement on their website remarked that they were “prepared to help wherever necessary in providing information and support all those involved in drafting the Agri-Renewables Strategy”. They also emphasised that they felt that the agricultural sector would be crucial if the Scottish Government was to achieve the “very ambitious” targets they had set for renewable energy generation. The NFU Scotland President Nigel Miller released the following statement in response to the Government announcement:

“The Scottish Government’s announcement that it will draw up an Agri-Renewables Strategy, with the assistance of industry representatives, is welcome and could be valuable for all farmers wanting to make the most of the opportunities for producing green energy on their land.

“The Scottish Government’s manifesto commitment to develop this strategy and, in particular, to simplify the planning process, were spot on. Scottish farmers and crofters have already contributed a great deal in terms of cutting carbon emissions and installing the means of producing renewable energy on their land, however, inconsistencies and constraints in the planning system mean that many farmers are struggling to get energy projects off the ground.

“The ambitious target to be able to produce 100% of our electricity demand equivalent from renewable sources by 2020 could be attainable, but we need a clear steer from the Scottish Government insetting out nationwide planning guidance and priorities for those applying for and approving renewable projects.

“NFU Scotland has built up a long list of examples from among its membership of where the system is and is not working and will offer to work closely with the Scottish Government and other industry representatives in order to help our farmers and crofters contribute to Scotland’s renewable energy aims.

“We have already got the ball rolling in tackling the planning issue and, in addition to our contact with the Scottish Government, we are meeting Scotland’s chief planner next week with a view to addressing the obstacles and anomalies that exist within the planning system and between Scotland’s local authorities.”

The Agri-Renewables Strategy could be absolutely crucial to achieving the aim of 100% renewable energy generation by 2020 as well as providing a much needed boost to agriculture and fragile local economies up and down the country. The only issue one could have on the subject is that it has not come quite soon enough.

Scottish offshore wind: Government Dispute threatens revenues

Posted on July 29, 2011 by admin

A dispute between the Scottish and UK parliaments may be hindering the development of Scottish offshore wind, as well as other forms of off-shore renewable energy. The dispute between the SNP majority government at Holyrood and the Conservative and Liberal Democrat coalition at Westminster is threatening investment in the sector. The SNP (Scottish National Party) had made the devolution of Scottish Crown Estate Property (in this case the seabed itself) one of it’s key economic policies. The Crown Estate has become a divisive issue between the two parliaments as the development of Scotland’s offshore renewable energy generation potential is considered to be key to achieving the SNP target of 100% renewable energy generation by 2020. According to some SNP figures Scotland is to become “Saudi Arabia of renewables”. Currently the revenues generated from Scottish Waters are controlled by the Crown Estate and therefore bi-pass the Scottish Parliament completely and go to the Treasury at Westminster.

Danny Alexander, the Lib Dem Chief Treasury Secretary has recently unveiled a new scheme to ‘support economic development in coastal communities’. This scheme will see 50% of the Crown Estate offshore revenues made available to such coastal communities for investment. The scheme will have a pot of cash of £23.7 million in total with £1.85 million ear-marked for the Highlands and Isles and £2.05 million for the rest of Scotland. With large-scale investment expected in Scottish offshore wind, marine and tidal generation it is expected that the amount available will increase dramatically; some estimates have put Scottish revenues from the seabed to rise to £40 million by the year 2021.

However the scheme has been criticised for a number of reasons. Firstly the Secretary has been accused of political opportunism, with some interpreting the scheme as an attempt to de-fang the SNP on the issue. Secondly, there has been criticism of a less political nature, the scheme will be placed under the control of the Big Lottery Fund meaning that coastal communities will be required to bid for access to the money. Thirdly, an upcoming Scottish Affairs Select Committee report is expected to strongly recommend “much greater” devolution to local communities so that they can directly benefit from investing in their sea beds.

Scottish Finance Secretary John Swinney reacted to the announcement of the scheme: “We welcome the fact that Scotland’s coastal communities will now benefit from their own resources, but it is only because of pressure from the Scottish Government that Westminster is taking any action on this issue, and this paltry announcement does not go nearly far enough.

“The Treasury has hit Scotland’s offshore oil and gas industry with a £2 billion tax grab and is also withholding around £200 million of Scotland’s money in the form of the Fossil Fuel Levy – now they appear to be trying to buy off Scotland’s coastal communities by offering them only 50% of their own resources.

“Those communities need to benefit from all of the money raised from Crown Estate revenues in Scottish waters.

“This is Scotland’s money and devolving full responsibility is vital if Scotland is to make the most of our vast offshore renewable energy potential.”

Angus Campbell, leader of the Western Isles Council welcomed the announcement as the beginning to reform but went on to say: “However I do not believe that a challenge fund controlled by the lottery is the way these funds should be administered. Local communities should have control and disburse income which is generated in their waters, not have to go through a bidding process to get what should be rightfully theirs.”

The dispute comes at a time when Scottish offshore wind developments are encountering some other problems. Whilst there are a number of developments underway there is a time delay between turbines being successfully constructed and being connected to the electricity grid. In the first six months of 2011 only around two thirds of the number of offshore turbines built in the UK were actually connected to the grid. This has meant that there has been less progress than there should have been in adding new generating capacity to the grid.

There has been good news for the wind sector as whole however as it has recently been uncovered that wind energy is now key to the European construction sector. Wind energy was one of the few industry’s which maintained demand over the course of the recession; most of the rest of the construction sector suffered badly.

The dispute over Scottish offshore revenues has led to some uncertainty about investment however Scottish renewables as a whole are continuing to develop at a good pace.
Scottish onshore wind particularly as Scottish offshore wind is considered to be around 40% more expensive to estasblish.

The Scotland on Sunday and Us.

Posted on July 18, 2011 by admin

Another article appeared in the national press on our work this week. The article, appearing in the Scotland on Sunday, not only outlined the history of Intelligent Land Investments as a company but also underlined the long term benefits we are hoping to bring to farmers and landowners up and down the country. As our Chief Executive Officer Mark Wilson said: “The Scottish Government’s feed-in tariff has revolutionised how much farmers and landowners can make through wind power. They could get up to £30,000 a year, guaranteed for the next 20 years.”

The guaranteed nature of this sum could be hugely important for Scottish Agriculture. A number of the farmers we work with have indicated to us that they intend to re-invest the money generated from the turbines into their existing farm business. The hiring of new staff and the purchasing of new agricultural machinery are things that can not only support fragile local economies in tough times but also increase yields. It has recently been announced that food and drink are now Scotland’s biggest exports so our turbines could perhaps benefit the Scottish economy at both the micro and macro level. Equally as important, of course, is the piece of mind that a guaranteed income can provide for those working in a difficult industry.

The comments, or rather comment, section is also worth a read due to the interesting, if untrue, conspiracy theory outlined by one reader.

The article can be found here. All thanks to Peter Ranscombe.

Ili-energy outlines local community scheme

Posted on June 1, 2011 by admin

Exciting times today in the Ili-energy office…

Exciting times today in the office as we received some positive press in the Dundee Courier. The article outlined some of the sites we have in planning at the moment in the Dundee area but more importantly it outlined our cash for the community scheme; of which we are very proud. This scheme commits us at Ili-energy to donating £5000 per Megawatt annually to charities local to our installed turbines for as long as they’re spinning: which is expected to be for 20-25 years. In times of spending cuts and austerity measures this is sure to be welcome news to our vital and increasingly squeezed charities.

Ili-energy is committed to local communities

Of course, it’s good news for Ili-energy too. A wee bit of positive publicity, hopefully some goodwill, and maybe planners up and down the country with a tear in their eye. But, don’t be fooled, this isn’t a sudden outpouring of the charitable spirit. Here at Ili-energy, we are committed to helping, and becoming a part of, the communities in which we work. Just as, over time, our turbines become just another part of the landscape. Our sister company, ILandi already donates 5% of their annual profits to vital institutions such as St Andrews Hospice. It is vital for the wind energy industry to reach out to, the at times, sceptical communities in which they are erecting, or hope to erect, turbines.

Who do you think Ili-energy should commit to?

The important thing is, of course, that our cash for communities pledge is as beneficial as possible. Which types of charity do you think would be most appropriate for us to commit to? What are the community services that you feel are most under pressure and are most in need of funding? Here in the Ili-energy offices we have been discussing it all day. Personally I would offer the opinion that services such as hospices are chronically underfunded and are coming under increasing pressure as aging communities need them more than ever. That is my opinion, what is yours?

Gary Neville is Green not Red

Posted on May 25, 2011 by admin

Last night, in front of a crowd of 42,000 people, Gary Neville called time on his football career. But it was neither defeat to Juventus nor the re-appearance of David Beckham in a Manchester United shirt that was of interest. Rather it was the floodlights, the hot water and the ovens.

For Neville’s testimonial had been billed as the first football game to be entirely powered by renewable energy. Wind energy to be precise. This was a game of football that was not just green on the pitch. Neville stated that “to produce the first wind-powered match is something I’m proud of”.

The function of the testimonial game in football has changed. In previous eras the testimonial was to send the player off with a retirement fund. But in a time of six-figure weekly incomes for footballers the testimonial is now an exercise in promotion, in many cases for charity. Neville chose to promote renewable energy; not just in the attention grabbing declaration that the game would be entirely powered by the wind; with 52 turbines across the country matching all electricity used by the game. Promotion in the appearance of Blue Square Premier team Forest Green for a half time penalty shoot out. Forest Green, who offer half-time vegetarian burgers and intend to have Britain’s first organically seeded football pitch, who seek to position themselves as a green and sustainable club. The most significant promotion came before the game itself when Neville announced that profits from his testimonial will be used to build and erect a series of 300-500kW community-scale wind projects across the country. The revenue from these turbines is then intended to be used by his Sustainability in Sports fund to help reduce the environmental impact of sports.

It seems that Neville has a real passion for renewable energy. This can be seen in the announcement that after 17 months in the planning process he has been granted permission to build what has been described as the first zero-carbon house in North-West England and one of the country’s most energy-efficient residential developments. Dubbed the teletubbies house in the popular press the home will feature its own 40m wind turbine, ground source heat pump, solar panels, and rainwater recovery systems. The turbine will be used to generate electricity to serve 12 or 13 local farms. The development of such a high profile eco-home will serve to put small scale renewable energy well into the public eye.

Neville had this to say about the development of his new home; “I have recognised in the last two to three years the need to make personal changes in my life and reducing my environmental impact is going to be a five year transition for me and my family, but with planning permission for my new eco-home being granted and my association with wind turbines, I’m on track to complete this journey.”