SCOTTISH Renewables has seen a 15 per cent slump in membership after the deployment of new electricity generating capacity from renewables dropped to its lowest level since 2010.
The trade body highlighted the “extremely challenging” conditions facing the sector as it reported membership numbers had dropped to 277 in 2015-16 from 328 the year before. It had 315 members in 2013-14, and 328 in 2012-13.
Scottish Renewables said the decline in membership is directly linked to the withdrawal of schemes that have been vital to the development of the renewables sector, citing the UK Government’s decision to end the Renewables Obligation a year earlier than planned and its removal of subsidies for new onshore wind projects, as well as cuts to subsidies for solar power and hydro projects.
It also warned the renewables industry, which currently provides nearly half of Scotland’s electricity, will see further contraction unless the industry secures a “viable framework for future investment”.
Chief executive Niall Stuart said: “Last year saw the removal of – or significant reductions in – schemes to support investment, and no clear signal of how or if these will be replaced for many parts of the industry.
“Last year saw the lowest deployment of new renewable electricity generating capacity in Scotland since 2010, and as the second-worst year since 2007. We have seen many companies in the sector downsize their teams already, and I worry we are going to see further contraction.” According to Scottish Renewables, the decision to close the RO early put £3 billion of investment in Scotland at risk. And it said the sector was dealt a further blow by the UK Government’s move to end subsidies for new onshore wind projects.
Adding to the uncertainty, Scottish Renewables said, are issues is the uncertainty caused by delays in implementing the RO’s successor scheme, Contracts for Difference, under which companies looking to build renewable projects bid for the right to sell the power they generate. Mr Stuart said: “The irony in all of this is our sector continues to enjoy strong public support, and Scotland and the UK need a massive increase in renewable energy between now and 2030 if we are to meet our climate change targets at the lowest cost to consumers.
“But, of course, we can only deliver that with a route to market. If we want continued investment and to maintain employment in the sector then it is vitally important government proceeds as soon as possible with the long-overdue auction for contracts for renewable power, and that onshore wind and solar are brought back into future auction rounds.”
Scottish Renewables said there is now “no way” Scotland would achieve its target of generating the equivalent of 100 per cent of its gross annual electricity consumption by 2020.
A Scottish Government spokeswoman said: “Scotland is at the forefront of the renewables industry, but there is even more we can do to build on the considerable progress made in developing our hydro, marine and offshore and onshore wind resources.
"Recent decisions taken at UK level have been damaging to key areas of the industry. It is essential UK ministers set out their plans for the next Contracts for Difference allocation round without further delay.”
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