Renewables could drive Scottish islands’ economic growth

Scotland’s island economies could benefit from up to £725 million over the next 25 years from renewable energy projects, according to the most recent report.

The report ‘Economic Opportunities of Renewable Energy for Scottish Island Communities‘, commissioned by the Scottish government and published by Baringa, provides analysis of the scale of the economic opportunities available to the Scottish Islands from further deployment of renewable energy.

Scottish islands have some of the best renewable energy resources in Europe from wind, wave and tidal. The Western Isles, Orkney and Shetland have the potential to supply up to 5% of total electricity demand in the UK market by 2030, according to the Scottish government.

With appropriate investment in grid infrastructure and generating assets, renewable energy deployment on the Islands could grow rapidly by the early 2020s, which could result in:

• Economic benefits up to £725 million for the island economies, including up to £225 million in community benefits
• Local economic stimulus at peak of up to £83 million a year or an additional 5% boost to local economic output on average across the Islands
• Revenues to community owned equity totalling up to £390 million for local communities from island generation projects
• Employment boost of up to 2,000 jobs created in the peak development phase across the Islands
• Alleviation of grid constraints in the Orkney Islands alone that could increase income to existing wind developments by around £2.7 million annually

Commenting on the report, Scottish Energy Minster, Fergus Ewing said: “This report confirms the potential of the vast renewable resources of our islands. They are arguably the best places in Europe to deliver renewable energy. The wind speeds are the strongest and they have the best potential for wave and tidal energy in the future.

“With high levels of fuel poverty in the islands it is necessary to deliver the unleashed potential of island renewables which will provide huge quantities of electricity but also provide enormous benefits to the people on the islands which could be used to help combat the problems of fuel poverty and rural deprivation.”

Ewing added that he, together with Council leaders, wrote to the Secretary of State Amber Rudd urging her Department to progress the necessary EU permissions immediately and bring forward a viable package of support in the coming weeks that supports the vital grid connections to the three island groups.