Scottish renewable energy secures additional funding

Around £100m of additional funding for Scottish renewable energy, including marine renewables, has been announced.

This announcement, made by the chancellor and chief secretary to the treasury, is an addition to the existing budget and spending plans of the Scottish government.

The agreement reached between the UK and Scottish governments will enable the Scottish government to access and spend half of the Scottish Fossil Fuel Levy fund.

Introduced in 1996 in Scotland, the Fossil Fuel Levy is paid by suppliers of electricity from non-renewable energy sources as part of the Non-Fossil Fuels Obligation. In 2002 the Renewables Obligation was also introduced to support renewable energy. Together, these processes produce a surplus that is held in the Scottish Fossil Fuel Levy fund.

The Scottish Fossil Fuel Levy currently holds a surplus of around £200m.

Under the agreement, the remaining £100m will be made available to support the capitalisation of the £3bn UK-wide Green Investment Bank.

Further funds that become available in the Scottish Fossil Fuel Levy fund will be split equally between the two governments.