Fergus Ewing says UK Government energy plans are bad news for renewables

New plans outlined by the UK Government are “bad news” for Scotland’s renewables industry, according to Scottish Government energy minister Fergus Ewing.

Secretary of State for Energy Amber Rudd has announced plans to build new gas-fired power stations while investing in new nuclear plants.

Rudd said the UK's remaining coal-fired power stations will be phased out 2025.

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Ewing claimed the Department of Energy and Climate Change (DECC) has “recognised belatedly that its policies have weakened energy security and pushed up bills”.

“But Amber Rudd has missed an opportunity to put in place new plans to address the gaps in UK energy policy,” he added.

It came as Niall Stuart, chief executive of Scottish Renewables, accused the Secretary of State of “bending over backwards to highlight the benefits of gas-fired and nuclear power whilst overstating the challenges of increasing our renewable energy capacity”.

Rudd told an audience in London that it is “imperative” to build new gas-fired power stations over the next decade.

She said: “We need to get the right signals in the electricity market to achieve that. We are already consulting on how to improve the Capacity Market. And after this year’s auction we will take stock and ensure it delivers the gas we need.

“Gas is central to our energy secure future. So is nuclear. Opponents of nuclear misread the science. It is safe and reliable.

“The challenge, as with other low carbon technologies, is to deliver nuclear power which is low cost as well. Green energy must be cheap energy.”

The Government's climate advisory panel concluded last month that low-carbon electricity, rather than gas, is the cheapest way to provide power and meet carbon targets.

Ewing responded: “Ms Rudd fails to point out that higher transmission charges in Scotland mean effectively that no new gas power stations would be built here because the costs of using the grid are higher than England. This regime which discriminates against Scottish generators affects all generators, and means that Scotland cannot attract new thermal generation when in competition with alternative sites in England.

“Having failed to support Longannet, Peterhead or any new baseload in Scotland through the first capacity auction, the UK Government’s new ‘dash for gas’ is an admission of the seriousness of the UK’s energy crunch and a belated attempt to replace the UK’s ageing nuclear and coal fleet.”

Stuart welcomed the UK Government’s commitment to energy storage innovation and research but questioned why Rudd neglected to mention wave and tidal energy. He also raised concerns over the future of the Renewable Heat Incentive.

He said: “It is right that we get coal off the system but there is no mention of gas already being the UK’s main source of carbon emissions, the cost of nuclear power being significantly more expensive than onshore wind and solar, nor the challenges of managing large and inflexible nuclear power plants.

“With the promise of future support for gas, nuclear and offshore wind, it is totally unclear if there is any future for investment in onshore wind and solar, despite the fact that these are the cheapest forms of renewable power available.

“Both have the potential to make a significant contribution to future climate change targets while keeping bills down for consumers, but we will only secure deployment if they too can bid in for the long term contracts for clean power available to other technologies.”

Patrick Harvie, Scottish Green co-convener, said: “A dash for gas will lock us in to further fossil fuel extraction when the scientific consensus is that we need to leave this stuff in the ground. The Tories' obsession with new nuclear ignores the crippling costs and toxic waste legacy.

“The challenge for the Scottish Government is to resist this direction of travel. Scottish ministers have rightly supported the development of renewables but they have also backed gas-fired stations, maximum extraction of oil and gas and have not opposed life extensions to existing nuclear plants. Using devolved powers to reduce energy demand, and give communities and public bodies a greater share of renewables, Scotland can show real leadership.”

But GMB, the union for energy and nuclear workers, welcomed the news.

Brian Strutton, GMB national secretary for energy, said “There can be eight to ten days per month when there is not a lot of output from the 10.2 W of installed wind capacity. There has to be back up reliable and clean power supplies available to cope with this. The only show in town now is gas and nuclear but Government needs to maintain investment in developing clean coal technology.”

He added: “The question has to be asked whether a private monopoly like National Grid should be the body to deliver energy security.

“We have to get away from the bonkers position where National Grid use consumer’s money to pay firms to stop work in order to avoid winter blackouts.

“Government needs to get on with finalising deals to get investment for nuclear power stations and gas-fired stations to supply reliable power. The investment will only happen when the framework is right which it is not now.”