Highland Leader's Fossil Fuel Levy Surplus Proposal

30th March 2010

The Leader of The Highland Council recently urged the UK Government to direct a surplus of £150 million in the fossil fuel levy fund attributable to Scotland towards connecting renewable power from the Highlands and Islands into the UK Grid.

Councillor Michael Foxley has written to the Rt Hon Alistair Darling, Chancellor of the Exchequer, to support representations he has already received from the Scottish Government's Cabinet Secretary for Finance and Sustainable Growth about this.

Councillor Foxley wrote: "The North of Scotland is rich in renewable energy resources, in particular off-shore wind, in the Northern and Western Isles and in the Moray Firth, and tidal energy from the Pentland Firth. These energy sources can be most effectively used as part of the UK grid, bringing power to the areas of largest population. In the case of tidal power, there is the further advantage that the large potential contribution from the Pentland Firth [60Gw of raw tidal power] could be integrated with the even larger potential of the English Channel and Irish Sea [190Gw]. Since the tidal crests in the Pentland Firth and at Dover are almost 12 hours apart, there is the potential for an 'always on' renewable energy source - but only if this is looked on as a UK-wide resource.

"In the context of a UK-wide energy policy, it would therefore seem appropriate if the UK fossil fuel levy were to be used to provide one or more sub-sea inter-connectors from the North of Scotland allowing energy from these sources to be fed into the UK grid. Such an integrated approach to renewable energy would also support the continued political union of the UK.

"I am aware that the Crown Estate is investigating the feasibility and costs of a strategic inter-connector, and I am writing to you to make a plea that the £150m fossil fuel levy surplus is used for this purpose."