Scottish councils could be in for a green cash bonanza. The opportunity comes from a decision by the UK Government to give them the power to sell electricity generated from renewable sources to the National Grid, according to energy lawyer Paul Minto of legal firm HBJ Gateley Wareing.
 
He argues that the long awaited move will  allow Scotland's cash strapped councils to raise millions of pounds from renewable energy, helping the Scottish Government to achieve its renewable energy target of generating 50% of the country's electricity from renewable sources by 2020.
 
Chris Huhne, the UK Government's Energy and Climate Change Secretary has stated that a 37 year old rule, which bans the sale of electricity to the National Grid from renewable sources, is "frankly ridiculous" and will be overturned later this month.
 
The "Production and Supply of Renewable Electricity by Local Authorities Regulations 2010" will revise the Local Government (Scotland) Act 1973, which includes a provision preventing councils from selling electricity produced otherwise than in association with waste and heat.

 

"This change in legislation will provide councils with a financial incentive to invest in renewable energy, allowing them to create a revenue stream where funds could be used for community benefit or channelled back into Scotland's frontline services, currently facing significant spending cuts," said Paul Minto.
 

"This will open up a host of opportunities for councils; permitting them to develop wind farms and sell the electricity directly, develop smaller scale community energy projects to supply remote communities, or even to self-generate at council offices and sell the excess electricity into the National Grid.
 

"The plan to overturn this rule is welcome news for Scotland's councils. Until now, legislation has prevented them from taking advantage of renewable projects. This change will help councils to maximise the potential of renewable energy."
 

www.hbjgateleywareing.com