19 January 2012

Highlands & Islands Labour MSP David Stewart who has recently proposed that the Scottish Government utilise the fossil fuel levy, (of which 110 million has been set aside for renewables in Scotland), to offset the announcement from the UK Government that it was to cut the feed in tariff for solar energy, has now sought further answers from the Scottish Government on this issue.

David Stewart said " I have now asked the Scottish Government what discussions it has had with the Department of Energy and Climate Change, the renewables industry and solar photovoltaic panel installers, regarding using the funding from the Fossil Fuel Levy Account to stimulate the renewables industry by introducing a new scheme of growth, loans or as previously proposed by me a Scottish-run top-up to the feed-in tariff system.

In his response, Fergus Ewing the Minister for Energy, Enterprise and Tourism said "we are reviewing our renewables budgets and spending priorities for the coming years to ensure that these funds, including the Fossil Fuel Levy allocation, are deployed effectively, and in a way which is wholly complementary and additional to existing plans. We will make a more detailed announcement in due course, we already provide a range of loans for householders, communities and small businesses to install renewables.

A Scottish top-up to the Feed in Tariffs (FITs) for Solar PV would probably be viewed as overcompensation in a State Aid context and hence unlikely to be compatible with FITs.

7 January 2012

David Stewart : To ask the Scottish Executive how funds from the Fossil Fuel Levy account were committed in 2010-11 and how much will be allocated in (a) 2011-12, (b) 2012-13 and (c) 2013-14.

Fergus Ewing: No funds have yet been drawn down from the Fossil Fuel Levy surplus account, held by Ofgem. Following the UK Government’s agreement late last year to provide the necessary increase in the Scottish expenditure limit to enable additional spending of £103 million funded from that account in 2012-13, we are reviewing our renewables budgets and spending priorities for the coming years to ensure that these funds are deployed effectively, and in a way which is wholly complementary and additional to existing plans. We will make a more detailed announcement in due course.

David Stewart : To ask the Scottish Executive what discussions it has had with (a) the Department of Energy and Climate Change (DECC), (b) the renewables industry and (c) solar photovoltaic panel installers regarding using the funding from the Fossil Fuel Levy Account to stimulate the renewables industry by introducing (i) a new scheme of growth, (ii) loans or (iii) a Scottish-run top-up to the feed-in tariff system.

Fergus Ewing: We are reviewing our renewables budgets and spending priorities for the coming years to ensure that these funds, including the Fossil Fuel Levy allocation, are deployed effectively, and in a way which is wholly complementary and additional to existing plans. We will make a more detailed announcement in due course.

We are in regular contact with DECC and with the renewables industry regarding support for renewables technologies, and I met with solar PV (Solar Photovoltaics) installers on 8 December 2011 to hear directly their concerns and discuss how we can support this sector in Scotland. The discussion covered a range of topics, including financial incentives and other support, and I intend to meet with solar PV installers again once the outcome of the FIT review for solar PV is clear.

We already provide a range of loans for householders, communities and small businesses to install renewables.