Subsidy cuts halt new hydro plant plans - 30/07/2012
The future of renewable energy in Scotland is uncertain after a subsidy cut has led to the main operator of Scottish hydro power stations claiming no more will be built.
SSE warned changes announced by Whitehall could significantly harm biomass production and wind farm development.
Trading as Scottish Hydro, the company explained how it had planned to build several new hydro schemes in the Highlands.
However, the government's announcement that a 30 per cent reduction in the Renewable Obligation Certificates businesses receive per unit of energy produced has threatened this.
Hydro schemes now face a subsidy cut of ten per cent, with the cutbacks expected to affect investment in hydro power and other renewable energy.
The SSE said existing plants will not be affected, but it now no longer expects to develop any new schemes.
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