Fossil Fuel Levy to Fund Scottish Renewable Projects

---

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- The Scottish government has announced plans to redirect a levy on fossil fuel-burning power plants to fund renewable energy projects.

The Renewable Energy Investment Fund (REIF) is worth €123 million ($164 million) and will be used to support local, rural renewable energy projects and in particular, the immature wave and tidal power sector. The new fund is in addition to the €238 million ($318 million) allocated by the Scottish government in its Spending Review for the next three years, which will also be used to boost renewable energy projects.

Unlike the funding from the forthcoming Green Investment Bank (GIB), which is designed to support projects at a "near commercial" stage, the REIF will be used to support projects at an earlier stage of development.

"This £103 million Renewable Energy Investment Fund will allow communities all over Scotland to reap the benefits of our green energy revolution," claimed Energy Minister, Fergus Ewing. "Scotland has astounding green energy potential and vast natural resources, and we have a responsibility to make sure our nation seizes this opportunity to create tens of thousands of new jobs and secure billions of pounds of investment in our economy. This fund will help us make the most of our potential. Some have called on us to increase funding for marine technologies -- this fund does that, demonstrates our commitment to marine and will ensure marine renewable projects become commercial realities. It will help ensure district heating is rolled out throughout Scotland, and will support communities developing their own local renewables projects."

The news comes just weeks after industry body, RenewableUK, warned that the potential for the marine energy sector will not be realised unless there is a significant increase in the amount of financial support by U.K. and Scottish governments. It believes that the sector could support more than 10,000 jobs by 2020 and be worth €4.4 billion ($5.9 billion). The U.K. currently has just 7.6 megawatts (MW) of wave and tidal energy installed but according to the government's Renewable Energy Roadmap, the target for 2020 is 300 MW, which will require an investment of €1.8 billion ($2.4 billion).

David Krohn, RenewableUK's Wave and Tidal Development Manager, said: "One step the Government could take is to allow the Green Investment Bank (GIB) to support wave and tidal projects at an early stage. It's frustrating that Ministers have not yet identified marine energy as a priority sector for the GIB".

Last week, Swedish energy company Vattenfall AB (Stockholm, Sweden) announced plans to launch its second wave energy project off the Scottish coast by installing the next generation of the Pelamis wave energy converters, from Pelamis Wave Power (Edinburgh, Scotland), at the European Marine Energy Centre (EMEC) located off the Orkney Islands. For additional information, see March 22, 2012, article - Vattenfall Unveils New Wave Energy Plans in Scotland.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.