Renewable money
Oct 11, 2012
Bishop Hill in Energy: wind, Scotland

A £103m fund to help boost investment in renewable energy has been launched.

First Minister Alex Salmond revealed plans for a Renewable Energy Investment Fund (REIF) at the Scottish Low Carbon Investment Conference in Edinburgh.

It is hoped the fund will help attract more private investment in technologies such as wave and tidal power.

Mr Salmond also told delegates about an advisory group being set up to support those seeking finance from the UK Green Investment Bank, headquartered in Edinburgh.

Also announced was a £4.3m Scottish Enterprise investment in Scottish and Southern Energy (SSE) Renewables's Hunterston offshore wind turbine test facility on the Ayrshire coast.

The REIF is said to complement public and private finance schemes with deals typically involving loans, loan guarantees and equity finance alongside co-investment partners.

It will be delivered by the Scottish Investment Bank on behalf of the Government and the first deals are expected to be complete by the end of this financial year.

Mr Salmond said: "We are determined to ensure Scotland is among the world's key destinations for investment in low carbon technologies, building on our long-established reputation in engineering, innovation and financial services.

"This fund will help leverage further significant private finance into key areas of the renewables sector where specific funding gaps have been identified.

"The planned advisory group will provide expert advice for people who have good ideas and projects to put to the Green Investment Bank but who need a helping hand to make them ready for investment."

Scottish Enterprise chief executive Dr Lena Wilson said: "Scotland is continuing to push ahead in its transition to a low-carbon economy. However, increasing access to finance is fundamental in our overall ambition to meet the target of 100% electricity from renewables sources by 2020."

Mr Salmond also defended policies for onshore wind, saying turbines do not seriously detract from the Scottish scenery.

"I don't think there's any serious evidence that they are incompatible," he told delegates.

"On the contrary, I think one of Scotland's attractions is that we are a green country committed to renewable energy. I think that enhances our appeal as a country."

Onshore wind has been a success and offshore wind will prove to be a greater success, he said.

Proposals to place turbines out at sea have attracted high profile criticism from US businessman Donald Trump, who objects to a development planned within view of his golf course on the Aberdeenshire coast.

Mr Salmond, the constituency MSP for the area covering the course, said he has no role in the planning process.

"I'm very happy that the Scottish Government will judge that application on its merits," he said.

"There's no amount of noise or foot stamping that's going to distract the Scottish Government from discharging its responsibilities properly." [my emphasis. Today's Moderator = TM]

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