INVESTMENT in hydroelectric projects in Scotland will slump if the new UK Government makes significant cuts in subsidies, a sector champion has claimed.
Scottish Renewables said a boom in the development of hydro schemes could end if the Government makes further cuts in the Feed in Tariff used to encourage investment in the sector. The rate of the tariff, which guarantees the price owners of hydro schemes get for their output, fell by up to 20 per cent last year.
Scottish Renewables is concerned the Government may announce cuts on a similar scale later this year. It said developers are hurrying to develop schemes before the tariff is cut further.
Joss Blamire, Senior Policy Manager at Scottish Renewables, said Hydro in Scotland is booming but more cuts in support could jeopardise future developments.
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