Renewables will lead recovery

Wednesday, April 28, 2010

Greater use of renewable energy will help Scotland recover from the recession, Highlands and Islands Enterprise (HIE) has said.

Achieving a low carbon economy - which includes increasing use of wind, wave and tidal power - is a key target in the agency's new three-year operating plan.

But HIE has also warned of the region's dependency on the public sector.

The plan lists specific targets for infrastructure investments including the European Marine Energy Centre in Orkney and wind turbine manufacturing operations at Machrihanish.

Its publication follows the Scottish Government's approval of HIE's bid for £3m of additional funding to upgrade facilities at the Arnish yard in the Outer Hebrides currently leased to renewable energy manufacturer Burntisland Fabrication.

Chair of HIE William Roe said: "HIE's grant-in-aid budget gives us around £50m of government funding to invest in the region in 2010-11, and there's a great deal we can achieve with that. At the same time, money is tight across the public sector, so will be single-mindedly pursuing additional funding sources for targeted investment in the region and will be aiming to deliver sustainable economic growth in all parts of the Highlands and Islands."

HIE's end-of-year performance review held yesterday revealed its work in 2009/10 is on course to generate £75m of added value to national growth over the next three years - only 12 per cent short of the target despite the recession.