The Chancellor and the Chief Secretary to the Treasury have announced around £100 million of additional funding for Scottish renewable energy, in addition to the existing Scottish Government budget.
The announcement represents a significant boost for renewable energy in Scotland and is expected to help drive development in the sector.
The UK and Scottish Governments’ agreement enables the Scottish Government to access and spend half of the Scottish Fossil fuel Levy fund, which currently holds around £200 million.
Chancellor George Osborne said:
“Today the UK Government is making sure that it gives certainty to the renewable sector in Scotland by providing an additional £100 million in funding.
“The UK Coalition Government is committed to creating jobs across Scotland – particularly in the green energy sector. It’s great news that we have been able to cut through the arguments and the wrangling with the Scottish Government that have stopped this money being invested in the past. It shows how serious the UK Government is in its support for Scotland’s green future.”
Danny Alexander, Chief Secretary to the Treasury, said:
“Scotland is a world player in renewable energy. It has huge potential for creating jobs and driving growth over the next few years.
“I am very pleased to announce this £100 million in additional funding for the Scottish Government, which will directly help renewable and particularly marine energy development in Scotland. The UK Government is strongly committed to supporting the growth of this sector in Scotland in the long term.”
The agreement will see any further funds raised from the Scottish Fossil Fuel Levy to be split evenly between the two governments.
