RENEWABLES firms have claimed that bringing in zonal pricing would risk up to 8000 jobs across Scotland if proposals are backed by the UK Government later this month.
Analysis from independent consultancy firm, Biggar Economics — for the Fairer Energy Future campaign — considered the economic impact that the delivery of the pipeline would bring to Scotland as the UK Government considers backing a plan to divide the country into different pricing zones, which would see consumers face varying electricity costs.
Bosses at Octopus Energy have previously argued Scotland would have the "cheapest electricity in Europe" if zonal pricing was introduced, adding that Scots were getting the “raw end of the deal” in the UK’s outdated energy market.
But the campaign – which is backed by manufacturers and energy producers, including UK Steel, Ceramics UK and OnPath Energy – has warned "billions of pounds worth of renewable investment and thousands of jobs" would be at risk if the proposals are greenlit by the UK Government.
At the moment, Britain has one national energy price even though at any point in the day the cost of producing electricity differs radically around the country.
It costs money to move electricity from where it is produced to where it is needed. Under the current market, if an offshore wind farm in Scotland produces more electricity than the network can handle it is paid to turn off, or "constrained" and a gas-fired power plant in the south of England is paid to turn on.
Instead of adopting a local or regionalised system where consumers and businesses in the different parts of the country could have substantially different energy prices from other areas in the UK, Fairer Energy Future is calling for an "enhanced national pricing" system.
Recent analysis found that more than 10GW of projects are in the Scottish onshore wind development pipeline.
Fairer Energy Future argue the analysis has found on average, every 1GW of onshore wind to be built between 2030 and 2035 will support around 800 new jobs in Scotland during its construction and a further 200 jobs once each GW site becomes fully operational.
On average, a commitment of £1.5 billion of initial capital investment has been made per GW of onshore wind, with a total of £3.0bn of lifetime investment (assuming a 30-year lifespan) – investing a combined total of £30bn and 8000 new jobs to the Scottish economy.
It comes after a coalition of offshore wind developers in Scotland also urged the UK Government to rule out introducing zonal pricing.
A spokesperson for Fairer Energy Future said: “Proponents of a zonal energy pricing system argue that it will help the UK reach net zero. On the contrary, the latest research shows that billions of pounds worth of renewable investment and thousands of jobs would be at risk if these proposals are greenlit by the government.
“Following the uncertainty of Brexit and the pandemic, including wars on the continent which have driven up energy prices, it’s clear that now is not the time for more risk for business.
“Our ‘enhanced national pricing' proposal provides a more suitable and sensible alternative to zonal pricing. It’s fairer, cheaper and greener, getting us to clean power by 2030 without the uncertainty and unknowns zonal pricing brings with it.
“And at a time when the country is seeking to boost economic growth, jobs and productivity, we strongly believe enhanced national pricing is the right way forward.”
