Ministers, businesses and the public are being warned that up to £30bn of planned onshore investment in Scottish renewable energy could be jeopardised if the UK government backs zonal energy pricing proposals later this month.
Recent analysis from Biggar Economics, commissioned by the Fairer Energy Future campaign, estimates that more than 10GW of onshore wind projects are currently in the Scottish development pipeline.
Each gigawatt also represents approximately £1.5bn in upfront capital and £3bn in lifetime investment, underlining the economic importance of maintaining investment momentum.
The Fairer Energy Future campaign warns these gains are now at risk due to uncertainty around zonal pricing, a policy being considered by the UK government as part of electricity market reforms led by the Department for Energy Security and Net Zero.
Zonal pricing would mean different regions of Britain could pay different prices for electricity, potentially deterring investment in Scottish projects.
Industry leaders including UK Steel, Ceramics UK, OnPath Energy and Scottish Renewables have raised concerns about the policy’s impact on investment confidence.
Instead, the campaign is calling for an ‘Enhanced National Pricing’ approach, which would:
- Ensure fairer pricing across regions
- Reform interconnector planning and operation
- Overhaul how consumer bills are allocated
A spokesperson for the campaign said: “Following the uncertainty of Brexit and global conflicts, now is not the time for more risk. Our proposal offers a fairer, greener and more cost-effective path to clean power by 2030, without the economic risks of zonal pricing.”
