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[This chapter assesses the potential impact of independence on Scottish electricity in the case of independence. It does seem likely that it would be in English as well as Scottish interests to maintain the British electricity system much as it is managed now, although the Scottish Government would have to shoulder financial responsibility for new renewable energy deployed after independence. This could be relatively cheaper as time moves on, although long term contracts for reasonable prices to be paid for renewable energy would still have to be issued by the Scottish Government and costs borne by solely Scottish consumers if renewable energy can be expected to grow. Certainly, a Scottish Government could support substantial development in onshore wind without great increases in electricity prices, and thus reverse the effective ban on funding future onshore wind imposed by Westminster. However, regardless of this, it seems unlikely that renewable energy will yield the tax receipts that have been supplied by oil extraction. A trend towards electric cars is likely to restrain oil prices and thus oil tax revenues in the future.]
Published: Aug 15, 2017
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