Extra £100 million released for Scots renewables projects

More than £100 million of extra investment has been made available to the Scottish Government for renewable energy projects following a deal with HM Treasury announced at the end of last week.

The money comes from the Scottish Fossil Fuel Levy fund held by energy regulator Ofgem, which is generated from a tax on suppliers of electricity from fossil fuels in Scotland.

The fund had amassed over £200 million in recent years, which will now be split equally between the Scottish and UK governments.

The UK government said that it would use its £100 million for the deal to help fund its nascent Green Energy Bank.

The deal comes after protracted negotiations between Holyrood and Westminster.

The Scottish Government’s finance secretary John Swinney commented: "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."

Chancellor George Osborne said: "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."

Under the terms of the deal, any further funds that become available in the Scottish Fossil Fuel Levy fund will be split equally between the two governments.

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