How would energy be cheaper in an independent Scotland?

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Business for Scotland
Business for Scotland
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Fast Facts

Scotland has huge potential to produce renewable electricity. At the moment, that is limited by the UK’s energy policy, and also by the outdated, privatised National Grid.

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An independent Scotland could operate as a zone, setting a price for electricity across Scotland, while still exporting to the rest of the UK through hubs, charging a higher price. That could tip the market balance towards more renewable production north of the border. 

Under the current UK pricing model, it is much more profitable to import gas than it would be to build a wind farm in Sutherland.  The way the market is currently regulated drives energy production into high-population areas – which creates the wrong market signals if you want to increase renewable production.

Using the nodal system would make it more profitable for renewable providers to produce energy in a low-population, high-potential area like the north of Scotland – because when selling into a high-demand area like the south of England for example they could charge more, which offsets the greater cost of production. 

Charging a higher price would actually eventually make the overall bucket cheaper for the south of England because it would drive a faster transition into renewables –  lucrative contracts for gas importers have contributed to the current dependence on gas. "