Ewing said the Scottish government is “aware of the UK government’s apparent intention to remove or reduce subsidies” and insisted “if such a decision goes ahead it must be ameliorated by a grace period covering all projects currently in planning.”
He stated the early closure of the Renewable Obligation is not a “sensible decision” and added: “If you now bring forward an early closure of the Renewable Obligation a huge amount of sunk investment will not go ahead.”
“We don’t believe an early closure of the Renewable Obligation is a sensible decision and will expose the UK government and hence the taxpayer to the risk of judicial review,” he added.
Responding to the minister’s comments, Scottish Renewables chief executive Niall Stuart insisted the proposed subsidy cuts would be bad for jobs and investment and would only “hinder Scotland and the UK’s efforts to meet binding climate change targets”.
“There are currently £3 billion worth of onshore wind projects in the pipeline in Scotland so a sudden closing of the Renewables Obligation would do incredible damage to investor confidence, not just in the onshore wind industry, but in the wider UK energy sector as well,” he said.
Energy secretary Amber Rudd said she intends to push forward with plans enforce the Conservative policy to “halt the spread” of onshore wind by amending current planning rules to give greater power to local communities, while subsidies for new wind farms will be banned altogether.
Renewable UK said the new legislation, set to take effect from May next year, is set to ring alarm bells for investors.
“With the Paris Climate Conference approaching we need to make sure all our options are available, and as onshore wind is the least cost way to decarbonise our electricity system, so any early restriction could lead to higher bills for consumers,” the group’s deputy chief executive Maf Smith said.
The group told Utility Week it would be “totally illogical” for the government to curtail the development of this “proven, cost-effective power source” which “continues to enjoy high levels of public support in every opinion poll”.