10 min read
Energy bills have risen dramatically over the past year - and are predicted to continue this trend for at least another two years.
But weren't we told that the more renewables we have in the country's energy mix, the less expensive our bills would be? In theory, that's correct. But there are a few key factors holding us back from cheap renewable energy - namely the country's outdated energy market.
Although the whole of the UK is enduring extortionate energy prices, Scotland is bearing the brunt of this situation. Despite generating electricity from almost 100% renewable sources, the nation is still paying the same amount for its energy bills as the rest of the UK - and sometimes even higher.
Here's why this shouldn't be the case.
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Should Scotland be paying less than England for electricity?
Yes, technically households in Scotland should be paying less for their electricity. After all, almost 100% of the electricity Scotland generates (including exports) comes from renewable energy sources, which are far cheaper than fossil fuels. Surely it's only fair that the nation sees the benefits of this?
In fact, most of Scotland's renewable electricity comes from wind energy, which is nine times cheaper than gas.
In terms of the electricity that Scotland actually consumes, 62% of it comes from renewables, with an additional 26% coming from nuclear power. That means 88% of Scotland's energy consumption comes from low-carbon sources, rather than gas and oil.
Data from government Energy Trends report, December 2021Despite consuming electricity that is 62% renewable - primarily wind power, the second cheapest source of energy in the world - Scotland is still dealing with energy bills either in line with the UK average or even higher.
This is problematic for two reasons:
- Electricity is a valuable resource in Scotland, since a lot of the rural areas in the country don't have access to gas, so they're more dependent on electricity and oil
- Many areas of Scotland - especially the northern regions - experience the coldest temperatures in the whole of the UK, which means properties need to be heated for longer periods of time
Graeme Dey, member of the Scottish National Party, blamed this situation on the UK government's lack of action, claiming, "Under Westminster control, the vast revenue from Scotland's oil and gas industry has been squandered by UK governments for decades, and now it is consumers in Scotland who are getting hammered with higher average energy bills than anywhere else in the UK."
Would Scottish independence lead to cheaper energy bills?
Scottish independence is a controversial debate - but the recent energy crisis is the latest example of why Scotland could benefit from distancing itself from the rest of the UK.
Scotland's renewable growth is being held back by the UK's outdated National Grid, which has lacked proper investment for decades.
But if Scotland were to become independent, it could operate as a singular zone, setting the price for electricity across Scotland while still exporting renewable energy to the rest of the UK for a higher price.
By altering the system this way, Scotland's energy market would be determined by renewable energy, rather than fossil fuels. Not only would this lead to cheaper energy bills, but it would also encourage more renewable development in Scotland.
If independence went ahead, Scottish leaders would also likely create a sovereign wealth fund, since the country sits on the North Sea Oil developments. Shetland started a small fund in 1976, when the Sullom Voe Oil Terminal began operating, which is now worth £460 million, and supports the council-run initiative to develop hydrogen and wind power.
Some experts have suggested that the Scottish sovereign wealth fund could be similar to Norway's success. Norway's £1.3 trillion wealth fund is the biggest in the world, and the Norwegian Government is using it to pay 80% of households' energy bills during the energy crisis.
The fund also provides billions to support former oil workers, build Norway's green energy infrastructure, and invest in renewable technology.
Summary
Renewable energy is the way forward - not only will it help the environment but it'll also lead to cheaper energy bills for households around the world.
And with an energy mix that consists mostly of low-carbon energy sources, Scotland should be experiencing some of the cheapest energy bills in the whole of the UK. But this will only be the case if the government modernises the UK energy system, to make sure it isn't determined by fossil fuels.
