FEARS for nearly 1,400 jobs in the Scottish hydro sector have been raised by a Perth-based hydroelectric company amid concern over the effects of UK Government subsidy cuts.
Green Highland Renewables, which specialises in small-scale hydroelectric schemes, said it expects that “80 per cent of all hydro jobs will be gone by 2020”.
Its outlook is based on cuts to hydro tariffs announced by Westminster last year, which according to chief executive Mark Mathieson “means there will be near to zero new Highland schemes coming forward for construction from 2018 onwards”.
There are 1,700 people employed in the hydroelectric sector in Scotland, according to the latest estimate by the Department for Business, Innovation & Skills. That means some 1,360 jobs are at risk because of the cuts to hydro tariffs, based on the Green Highland Renewables estimate.
Mr Mathieson said: “All of our projects have secured a feed-in tariff from the UK Government, and the only sad note is that the cuts to hydro tariffs announced last year means there will be near to zero new Highland schemes coming forward for construction from 2018 onwards. We expect 80 per cent of all hydro jobs will be gone by 2020.”
The nearer term outlook looks notably brighter for Green Highland Renewables, which said it has generated £55 million for the Highland economy so far this year through its build programme.
The company, acquired by London-based infrastructure investor Ancala Partners last year, is planning to commission 10 new projects in the north of Scotland. These include a £13.6m scheme at Loch Eilde Mor, near Kinlochleven.
Mr Mathieson said: “A major tranche of schemes will commission this month in order to meet feed-in tariff deadlines, but we also have a full order book for 2017 with more than £40 million planned investment in the pipeline. It is a very exciting place to be, and we are continually innovating in how we deliver schemes.
“Our project at Loch Arkaig boasts one of the biggest Archimedes screw installations in the UK, whilst at Loch Tay we have run a submarine cable across the loch at 150 metres depth – greater than found in most of the North Sea.”
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