Isra-Mart srl:Scotland bids to host green investment bank

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Scottish secretary Michael Moore has urged the government to locate its planned green investment bank (GIB) north of the border, as new figures reveal Scotland is set to exceed its target to supply 31 per cent of its electricity from renewable sources next year.

Speaking at the Green Energy Awards in Edinburgh last night, Moore reiterated his call for the £1bn bank to be located in Scotland, arguing it would strengthen Scotland's position as a low-carbon hub and make it easier for the bank to identify suitable green infrastructure investments.

"One of the key mechanisms for supporting the growth of the green economy in Scotland and the UK as a whole will be the GIB, which I want to see based here in Scotland and which will benefit the industry in Scotland," he said.

However, a Department for Business, Innovation and Skills spokesman was tight-lipped about the planned location of the bank, telling BusinessGreen that it is currently more concerned with establishing the structure of the GIB.

"We will be making a further announcement at the end of spring next year," he said. "At the moment, the main parts we're working on are the structure and how it will best provide effective investment and low-carbon growth. In terms of location, we have nothing to say about sites, we're more concerned on the setup."

The campaign to locate the bank in Scotland was started by Scottish National Party MSP Rob Gibson earlier this year, who argued a Scottish-based GIB would bring it closer to the renewables industry and those parts of the country that will contribute most to the building of a low-carbon economy.

Any decision to locate the bank in Scotland would also provide powerful evidence that the government is serious about reducing the UK economy's reliance on London and the south east.

Moore's backing for a Scottish low-carbon bank came as figures released on Wednesday estimated the annual output of Scotland's installed renewable electricity generation capacity will reach 32 per cent of demand in 2011.

The majority of that electricity will be supplied by onshore wind, hydropower and energy from waste, according to the projections.

Scottish Renewables chief executive Niall Stuart said the results suggested Scotland is well on track to meeting its 2020 target of supplying 80 per cent of electricity from renewables.

"Scotland's renewables industry has grown faster and further than anyone dared to hope even a few years ago," he said. "We now have more than 4GW of developments in operation [and] with another 765MW in construction right now, it is clear that even allowing for increased demand year on year, we will more than meet the target of 31 per cent of all electricity demand in 2011."