RENEWABLE energy projects could create more than 12,000 jobs on the Scottish islands by 2030, according to a Government-commissioned report.
An independent study found that investment in wind, wave and tidal energy would bring significant socioeconomic benefits to the Western Isles, Shetland and Orkney and could establish Scotland as a world leader in marine technologies.
But the expense and difficulty of accessing the National Grid means the Government needs to weigh up the cost and benefits of developing renewable energy on the islands against other sources of electricity, the report said.
Analysis suggested 1271 jobs could be created on the islands by 2020 and 10,900 within the following decade – 3500 on the Western Isles, 2900 in Shetland and 4500 on Orkney. However, the report said uncertainty surrounding the transmission of green energy from the isles could thwart the opportunity for the UK to become a leader in the field. It said co-ordinated policy was urgently needed if the Western Isles was to fully contribute to green energy goals.
The report, by Baringa Partners and TNEI, said: "Further renewable generation on the Scottish islands will not be developed on any scale in the near term under current policy. The costs of connecting to the transmission system are too high, making it difficult for developers and the regulator acting on behalf of customers to commit to costly new transmission infrastructure.
"In turn, the lack of grid access deters new developers, particularly those not in a position to meet the financial commitments required to secure future grid capacity. Ongoing uncertainty will inevitably lead to delays meaning that, despite the potential, renewable generation on the Scottish islands would only make a minimal contribution to 2020 renewables targets."
UK Energy Secretary Edward Davey said: "The Government is keen to unlock the potential for development for renewable energy on the Scottish islands, but it's vital that projects represent value for money for the consumer."
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