THE Scottish Parliament has adopted ambitious targets for reducing carbon emissions and developing renewable energy. However, energy policy is a reserved power and Westminster frequently adopts policies that frustrate the Scottish Government’s goals.

In Scotland’s Future, prior to the last referendum, the SNP pointed out that Scotland is fortunate in not only having fossil fuel resources such as oil and gas, but abundant untapped renewable resources of wind, wave and tidal power. It correctly stated that Scotland could not only ensure its own energy security, but could after that was assured help the rUK’s own energy security. It even promised to reduce energy bills to consumers and establish an Energy Fund for future investment.

In the White Paper Project, we argue that independence should open up a wide ranging discussion over energy policy through a representative National Energy Forum, which should examine likely policy directions and create the structures which would support that direction. It should develop a ten-year plan for ensuring energy self-sufficiency based around non-nuclear renewable energy with energy storage providing resilience.

A key area for discussion in this respect is to question the assumption that market pricing is the most efficient and effective way to secure energy supply. Since the electricity industry was privatised there is evidence that a market-driven policy has reduced investment in grid infrastructure, reduced generating and network capacity and undermined the network’s ability to respond to unexpected events e.g. power failures or severe weather. Rather than insisting that electricity consumers pay for all costs through their bills, should infrastructure renewal and developing a smart grid not at least partly come from general taxation?

Why should foreign multinationals, often state-owned, receive long-term profits from our wind, wave and tidal energy? Should renewable projects above a certain size not be at least 50 per cent owned by a Scottish public body and funded by a Scottish Investment Bank, which would reinvest profits back in Scotland?

How best can we integrate energy policy with our industrial strategy? Can we develop new industries closer to where energy is produced thus minimising energy lost in transmission through the grid? These industries could benefit from potentially much cheaper costs per energy unit and longer term fixed prices, making energy intensive industries viable e.g. aluminium smelting.

Should we set up a publicly owned electricity supply company and encourage energy cooperatives and local energy companies to socialise the value of energy generation in their area? Should we take the grid back into public ownership? A National Energy Forum should actively pursue discussion of all of these issues after a yes vote.

We also believe that the following institutions need to be established between the independence vote and Independence Day.

A full Department of Energy and Industry to be established as part of the civil service. This department should develop long-term energy policy and strategy for Scotland according to the decisions of the elected Scottish Government.

A new Scottish Independent Energy Regulator, a Scottish Ofgem, to ensure that the interests of customers are properly represented in both the generation and retail sale of energy and through the licensing of energy companies. This would be funded through a levy on energy companies.

Finally a new Scottish Transmission Systems Operator. Every European country has a Transmission Systems Operator (TSO) to ensure that electricity and gas are supplied as required within the country and to other countries through inter-connectors, cables or pipes and in accordance with the policies of the government. The UK is somewhat unusual in that the TSO is a commercial company, National Grid, which also are also engaged in the generation and supply of energy. Our proposal is that Scotland should copy Ireland and establish a publicly owned TSO.

The TSO should take over the responsibility for Scotland’s national grid. Initially it should not take ownership of transmission assets but should set policy and development plans for the grid, contracting existing energy companies for maintenance and operation.

The TSO should then have full responsibility for managing and developing the grid and other distribution and storage systems according to future government policy.

The Irish TSO, Eirgrid, generates a profit for the government from its operations through the charges made during the retail sale of energy.

By properly managing our abundant energy resources, we can develop new industries and ensure our future prosperity in an independent Scotland.

Gordon Morgan is an energy researcher for Common Weal. What do you think? Email to tell us at WhitePaper@common.scot