£12bn cost of Scottish energy network update

The Sunday Times
December 7, 2008
Government may face calls to abandon opposition to new nuclear plants
John Penmanand Iain Dey

Scotland needs to invest £1 billion a year until 2020 to bring its ageing electricity generation and distribution network up to date, according to a key study.
The research, published by the Scottish Council for Development and Industry (SCDI) this week is expected to show an extra £10 billion in electricity generation is needed in addition to the planned £2 billion investment in the national grid north of the border to make progress towards the Scottish government’s aim of an 80% cut in CO2 emissions by 2050.
The government revealed the ambitious target in its Climate Change (Scotland) Bill last week.
The report, compiled by energy consultants Wood Mackenzie, found that £10 billion is needed to replace ageing generators with newer low-carbon alternatives.
Cockenzie and Hunterston power stations are likely to be decommissioned in the next 10 years.
The findings are likely to increase calls for the Scottish government to abandon its opposition to new nuclear plants. Some experts have questioned whether Scotland can achieve its ambitious targets without nuclear power.
The report found that the other challenge is to connect the growth in renewable energy installed in remote and rural Scotland to the main centres of population in the central belt and south of the border.
The energy regulator Ofgem has estimated that some £2 billion of new or strengthened connections are necessary to deliver renewable energy from the north and west of Scotland.
Lesley Sawers, the SCDI chief executive, said: “The report shows the scale of the challenge we have to deliver clean, affordable and reliable electricity. The level of investment in energy is unprecedented in recent times, but it is absolutely vital to replace existing plants and meet our climate change commitments.”
The report comes as businessman Maitland Mackie revealed that his plan for a rural wind farm company has already attracted about £2.5m in funding commitments.
Mackie, the man behind Mackie’s ice cream, recently unveiled plans for a rural wind power company Windgen, which would be owned by individuals and communities in the rural sector.
There are currently over 450 registrants, indicating 600 potential sites around the UK. Mackie he was delighted that £2.5m had been committed already but to launch Windgen would require £10m.
“We need to meet that figure by spring next year but I am confident we can do it,” said Mackie.
“I am starting on a UK-wide roadshow to explain the financial benefits.”
The 71-year-old said research had shown that an average site could generate as much as £500,000 profit per year.
“This an opportunity to pour funding back into rural communities,” he said.