SUBSIDIES for offshore wind technology could be increased as part of a plan to encourage investment.

Energy Minister Fergus Ewing hopes a new targeted incentive could open up the exploitation of deeper, more challenging waters off the coast of Scotland.

The proposal, which will be open to consultation, is part of changes to Scotland's Renewables Obligation, the main support mechanism for UK renewable electricity projects.

Other decisions include the retention of support for hydro generation, removal of support for some larger and less efficient wood-fuelled biomass stations and a 10% reduction in support for onshore wind.

The Renewables Obligation has helped almost triple output in Scotland and attract about £2.8 billion investment since 2009, Mr Ewing said. By 2020, bills will be £94 cheaper with renewable energy policies, he added.

Dr Richard Dixon, director of WWF Scotland, said: "This is a sensible package which will make sure we can meet our 100% renewable electricity target."