As Scotland has the largest renewable energy capacity in the whole of the UK, it would seem that this scheme would benefit ratepayers and companies based in the country. But Alan Brown, the SNP’s Transport, Infrastructure and Energy spokesman, said the move could backfire. He explained to Express.co.uk: “At present, it is uncertain what the overall impact of a site-marginal pricing scheme will be. “We all welcome any avenues that reduce costs, but this model could jeopardize investment in renewable energy in Scotland.” His comments come in response to an analysis of the model by expert Dr Simon Cran-McGreehin, head of analysis at the Energy and Climate Information Unit. He explained to Express.co.uk:[Under] Local marginal pricing, in cases where there is a real imbalance between excess production and insufficient demand, provide signals so that customers have an incentive to use extra. “These could be mainly industrial customers… but also households. There is an increasing opportunity for smart meters and smart devices to use more electricity when it is cheaper and more available. “This could be overnight when there is lower demand or when it is more windy. “At the extreme, if you had such strong signals and very cheap wind in Scotland and you didn’t have enough capacity to get into England. You could see some industries moving or settling from Scotland in preference to England.” READ MORE: China launches third aircraft carrier in chilling warning But Mr Brown warned that marginal pricing could actually have the opposite effect. He explained: “If producers are seen to be producing too much energy and being paid too little, then it may not be economically viable to go ahead with projects. This is clearly self-defeating.” He later added: “Scotland is currently disadvantaged because generators are charged the highest network charges in Europe. It seems unfair to potentially move to a system that means generators get much lower prices for producing power than elsewhere in the UK. Clearly, this will further drive investment away from Scottish projects. “These aspects alone show how an independent Scotland can make better decisions about how energy infrastructure can be better managed so that it has a system that is truly designed to meet zero and incentivize renewable energy production where is the best position for maximum performance.” DON’T MISS Out Millions of Brits want to install heat pumps – there’s a problem [INSIGHT] Russia has ‘insufficient numbers’ to support invasion of Ukraine [REVEAL] NATO chief vows to break Russia’s energy commitment [REPORT] If there are fewer incentives to invest in Scottish projects, it could therefore be suggested that rather than English firms moving to the region, Scottish-based firms might seek to move to locations where investment incentives are provided. Mr Brown’s comments come after Scottish First Minister Nicola Sturgeon announced a second Scottish independence referendum this week. Ms Sturgeon has set October 19, 2023 as the date for the vote, but the legality of the push has been questioned. When asked by journalists about the issue, the Prime Minister replied: “I want a legal and constitutional referendum. That’s what I’m focused on right now. “Scotland cannot and will not be in a position where its democracy is captive to the intransigence of Westminster, so people will have that opportunity to make their views on independence known and we will put that to an election, which is clearly a legal process.”
