Fossil fuel funds

11 Nov 2011 12:31 PM

Chancellor George Osborne has agreed to Scottish Government proposals to release surpluses generated from Scotland's energy industry which mean that over £200 million is currently held by the energy regulator Ofgem.

The deal the UK Government has now agreed gives Scotland access to an additional £103 million of funding with the remainder available to capitalise the Green Investment Bank.

Finance Secretary John Swinney said:

"Today's announcement, though long overdue, is welcome nonetheless. For too long Scotland's money has been sitting unspent in an Ofgem account in London.

"We have consistently pressed the UK Government to deliver a pragmatic solution that accelerates the release of funding for renewable energy projects that are ready to go now in Scotland.

"The proposal we put to the UK Government has at last broken this logjam and made over £100 million additional funding available now - vital funding to support further renewables investment, and make the Green Investment Bank a reality for ongoing support.

"I am glad the UK Government have withdrawn their earlier entirely inadequate proposal and accepted the Scottish Government's proposal.

"Scotland has the natural renewables resources to become the green energy powerhouse of Europe using all forms of renewables including hydro, wave, tidal, onshore and offshore wind.

"This Government is doing all it can to strengthen Scotland's reputation for the development and creation of renewable energy. With access to this funding we can now do even more.

"The investment we are making in Scotland's renewables future will bring the clear benefits of developing our competitive advantage, supporting new technologies, and creating green jobs to help stimulate a strong economic recovery."