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Page added on September 19, 2014
What next for Scottish energy?
Three things you shouldn’t miss this week
- Chart: How Scotland’s energy compares with the rest of the UK’s
- Commentary: What Happens To Clean Energy Investments If Scotland Votes “Yes”? – Reviewing the BNEF study.
- Commentary: Going green is good for the economy (depending on your economic worldview) – How the UK economy could be larger, its households better off, unemployment lower and its businesses richer if it chooses to cut emissions.
So it’s a no. Months of debate are finally over. But what’s the future for Scottish energy?
It was a dominant theme throughout the referendum, but debate was largely focused on whether or not Scots could wangle a so-called ‘fair share’ of North Sea oil and gas. Where were renewables in visions of a post-2014 future?
North Sea reserves are in terminal decline, but in the European league of windiness Scotland is in gold medal position. With just 8% of the total UK population, Scotland already contributes 32% of the union’s renewable energy. Its dwindling subsea reserves pale in comparison.
Focusing on how big or small Scotland’s fossil reserves are is like debating how good Wayne Rooney is at badminton. Scotland should focus on the energy of the future, which also happens to be its greatest strength.
In the weeks leading up to the vote many big energy companies came out strongly against independence, highlighting concerns about the investment landscape in a breakaway Scotland. Bloomberg New Energy Finance drew similar conclusions in a report last week on renewable energy investment.
But uncertainty around renewables wasn’t just down to the referendum – UK energy policy has had a huge impact. According to a report from consultants EY, “mixed signals, dwindling budgets and political apathy” have reduced the attractiveness of the UK clean energy sector to its lowest level in five years. It is vital that the political classes on both sides of the border recommit to a clean energy future right away.
The political battle for Scotland may be over, but the issues it has raised – including those around energy security – are far from resolved. Despite differing claims and counter claims over potential oil revenue, Scotland and the rest of the UK are faced with the same hard facts: North Sea oil is in terminal decline and reliance on fossil fuels is anyway incompatible with the overwhelming scientific evidence on climate change.
8 Comments on "What next for Scottish energy?"
rockman on Fri, 19th Sep 2014 11:42 am
It will be interesting to see if Scotland might become a significant source of alt energy for England. Regardless of how the revenue is split the N Sea is on the downside even with higher oil prices. Unless someone knows differently I doubt England has any right of first refusal on Scotland’s alt energy. Who knows: Scotland one day may become the “Saudi of UK alt energy”. At that time the Scots might enjoy a bit of revenge on their Brit cousins.
Plantagenet on Fri, 19th Sep 2014 2:22 pm
I’m sure Scotland’s benevolent overlords in London will make the right decisions for Scotland’s energy future.
Davy on Fri, 19th Sep 2014 2:58 pm
I have to say I was looking fwd to a yes vote on independence and a resulting financial contagion to knock some sense into the markets. I am sure TPTB rigged the results somehow if by no other means then a massive spending on the no campaign. There was some big money at stake. Yet, I guess these happy days are nice prep time for guys like me. It would be nice if my doomism was just mental illness. Maybe it is and i am just delusional. Maybe we have another 20 of great times! What are your thoughts Noo?
J-Gav on Fri, 19th Sep 2014 3:05 pm
What next for anybody’s energy? More costly extraction and diminishing returns. Not rocket science. I doubt the 20 more years of ‘great times’ Davy – but then, so do you I believe …
Davy on Fri, 19th Sep 2014 3:56 pm
Gav, I was just baiting Noo but he is at the bars by now talking shop with the other brokers. Gav, you know your timeline and mine are spot on from my memory of previous posts. Anyway 3-5 yrs will do. I can tell you this I live these days like the 3-5 is a terminal illness diagnosis. It could very well be but who knows. It is absolutely fabulous here in mid MO today. I am lovin life! If I can give any doomer advice it would be live everyday like you only have 3-5 left!
MSN Fanboy on Sat, 20th Sep 2014 11:32 am
It will be in 20 years LOL. The goverments will just print more money all at once at the next crash.
When oil production is falling at 150 dollars a barrel we will have arrived.
rockman on Sat, 20th Sep 2014 11:43 am
Davy – Right on, bro! LOL. I have that same time frame attitude. My wife gets pissed when someone asks if my MS is fatal. But not at them… at me. If I think they can handle the morbid humor I respond: “Yes…it’s fatal. But if I’m lucky something else will take me first”. For the good or bad of it, the worst of PO won’t be a problem for our band of (old) bothers…something else will take us first.
Even if GW brings about more frequent/stronger hurricanes I’ve dealt with them my entire life on be Gulf Coast. Had a house collapse on me once and waded thru flood waters on two separate occasions. I’m more concerned about *sshole pickup truck divers in Texas like the one who ran me out of my lane just yesterday. LOL.
Davy on Sat, 20th Sep 2014 11:53 am
Rock, in my 50’s and know that is when the health issues start. Who knows what is lurking inside me. I worry about a serious injury here doing farm work leaving me dead or incapacitated. Being alone during the week for the most part I will be dead and moldering by the time they find me on the weekend lol. Rock, you may have a serious illness but you got your mind and it appears happiness. One cannot put a price on that.