Experts says cash for green power would help combat recession

Published Date: 15 March 2009
By Rosemary Gallagher

THE green energy industry can lead the UK out of recession by developing world-leading technology, creating jobs and taking advantage of the "Obama effect", but only if the Government puts money into it, experts will warn this week.
Trade body Scottish Renewables is holding its annual conference in Edinburgh on Wednesday and Thursday focusing on the role of the sector in sparking economic recovery. Experts say Scotland is currently ahead of the competition in areas such as wave and tidal power. But they warn it will lose this advantage, in the same way it gave away its lead in wind power to Scandinavia, if the Scottish and UK Governments do not provide fiscal stimulus.Grant Hodges, partner at PricewaterhouseCoopers, who is taking part in a debate led by Scottish energy minister Jim Mather at the conference, says Scotland has to focus on the next generation of green technology, including wave, tidal and solar. "Scotland can grab the lead in these technologies and has the potential to create a very big industry with a lot of economic benefit. While we still need to develop wind farms, we have to realise we gave that technology away and there will never be a huge amount of jobs in that area."While there is demand for green energy from consumers becoming more aware of climate change, the need for the Scottish Government to meet its target of 50% of the country's electricity coming from renewable sources by 2020 and energy security issues stemming from the volatile situation in Russia and Ukraine, there is one big barrier. Hodges says domestic governments are not investing enough compared with other countries, such as China. "Renewables could help lead Scotland out of recession but they currently won't because of the lack of Government investment," says Hodges.Speaking ahead of the conference, Mather says: "One of the key strengths of our economy – in extremely tough economic times – is our renewable energy industry, which goes from strength to strength. We have seen around £1bn of investment in renewables in recent months as we work with industry to make Scotland the green energy capital of Europe."He adds that Scotland is forging strong and productive partnerships in a wide range of areas to use its natural energy potential to create jobs and a sustainable, low carbon future. Also speaking at this week's conference is Stuart McCallum, corporate finance director at Baker Tilly, who is urging Scottish companies to cash in on US president Barack Obama's pledge to invest in alternative energy to boost the economy. McCallum says: "Our US offices are noting a growing level of interest in all aspects of renewables driven by the Obama effect – Scotland and the UK must be involved in this where we can."Jason Ormiston, chief executive of Scottish Renewables, wants the Scottish Government to speed up the planning process, while Westminster must provide financial support.