Renewables Can Protect UK from Fossil Fuel Price Shocks

A report released by Oxford Economics and commissioned by the Department for Energy and Climate Change (DECC), has shown that a low carbon scenario whereby the UK had a “significant increase in the share of renewable energy in the power sector” would mean that the impact of future fossil fuel price shocks on the UK economy would be diminished.

Commenting on the report, Niall Stuart, chief executive of Scottish Renewables said:

“This independent report by one of the world’s leading forecasting and research consultancies goes to show that not only is the renewable energy sector providing jobs and investment in the economy now but that this investment is also helping to insulate the UK from fossil fuel price shocks in the future.

“We know that energy bills are rising faster than people’s income, and this is being driven mainly by increases in the wholesale price of gas. This report shows that if we invest now in a low carbon future, with renewable energy at the heart of it, we can help reduce consumer’s dependency on a volatile energy source that is driving up their bills.

“The renewable industry in Scotland is already supporting over 11,000 jobs and providing around 35% of Scotland’s electricity demand so we already know full well the benefits that renewable energy can bring to the economy but people don’t always realise the benefits it can bring to energy security as well.

“This report shows yet again how valuable renewable energy is to UK plc and I hope this importance is reflected in the draft Energy Bill next week.” 

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Offshore WIND staff, May 18, 2012; Image: Scottish Renewables