AN INDEPENDENT Scotland could establish a single energy market with the rest of the UK, provided there was "goodwill and co-operation" between the two countries, according to a report commissioned by the Scottish Government out today.

The Government's independ-ent Expert Commission on Energy Regulation said comb-ined energy markets, built on partnerships between separate countries, existed elsewhere in Europe.

It concluded that a continuing Britain-wide energy market - which the SNP insist would follow independence - would be the best outcome for consum-ers and utility companies in Scotland, England and Wales.

It also said the rest of the UK should continue to subsidise Scotland's renewable energy sector if the country became independent.

The view contradicts warnings from the UK Government, which has said it would not subsidise green power produced in an independent Scotland and would only buy it "on a commercial basis".

The long-awaited expert report, which was due to be published in the spring, will be officially unveiled by First Minister Alex Salmond and Robert Armour, the chairman of the commission, in Aberdeen today.

Mr Armour, an energy expert and former chairman of the Scottish Council for Develop-ment and Industry, said: "In the event of independence, there are undoubtedly issues that will have to be settled between the two administrations.

"We share a common integ-rated system and share a common interest in energy security.

"Looking to Europe and beyond, we found working models of cross-border partner-ships delivering jointly-regulated integrated markets that show single markets can work with goodwill and cooperation," he added.

Welcoming the commission's findings, Mr Salmond said it was "in our common interest to share energy resources across our borders".

He added: "Scotland is a resource-rich country and it offers safe and secure supplies of electricity and gas, and can continue to assist the rest of the UK in meeting its legally-binding renewable energy targets."