Scotland should be the home for clean power generation and businesses driving the green revolution

On Wednesday this week I led a debate on Scotland’s contribution to energy security and net zero in Westminster Hall. Scots care about this deeply, because it goes to the heart of Scotland’s economy, our cost of living, and our national security.

Scotland is already leading the way in the shift to clean power. In 2024, 90% of the electricity generated in Scotland came from low carbon sources. Figures published by the Department for Energy Security and Net Zero also show that Scotland produces more electricity than it consumes, transferring 17 terawatt-hours of excess electricity to England, enough to power every home in London for two years.

That matters for all of us. Scotland’s clean power is helping the UK move towards greater energy self-sufficiency, strengthening our resilience against international shocks, and making the UK a more attractive place to invest and do business. But it also raises a basic question of fairness. If Scotland is carrying so much of the generation and infrastructure that underpins Britain’s energy system, shouldn’t Scots see the benefits in their lives.

We have to be honest about the transition we are in. The North Sea basin is in decline, and the impact on Scottish jobs is already clear. In 2023, the oil and gas industry supported 121,000 jobs, a 51% fall compared with 2014. That is why the shift to clean energy has to come with a clear route into new green jobs for those currently working in oil and gas. This cannot be a loose ambition. It has to be a plan that keeps skilled people in good work as the economy changes.

The UK will still need oil and gas for the foreseeable future as we decarbonise. So, as we meet that remaining demand, we should do so in a way that strengthens energy security and protects jobs. That means drawing from a secure, well-regulated domestic supply where possible, rather than increasing reliance on imports and exporting work and value overseas to countries with lower environmental standards.

But if we are to successfully move away from oil and gas we also need reliable low-carbon power that can complement wind, hydro, solar, storage and interconnection. Nuclear is the clear option and small modular reactors should play a role in a sustainable plan to achieve net zero. Yet the SNP Government’s current position does not support incorporating new nuclear technologies for electricity generation in Scotland. That is why I pushed for the UK Government and the Scottish Government to hold talks on Scotland’s nuclear policy, with small modular reactors explicitly on the agenda.

If we are to meet our renewables targets it will require cooperation across government and from the federal level to the local. Key levers over the energy market, networks and system operation sit at UK level, while planning and many delivery aspects sit at the devolved level. If we want a transition that stays on track and which delivers for the country and the communities impacted, it will require cooperation.

Scotland already hosts major clean power generation and the transmission infrastructure that goes with it. Communities live beside wind turbines and pylons. They live with disruption during construction and operation, and too often they do not see the benefits of green energy, despite facing the intrusion into their communities. We cannot build at pace without public consent, and consent is strengthened when communities are well informed and share in the long-term value created by the infrastructure around them. To this end there should be a consistent approach to community benefit for those that host the infrastructure which allows the UK to be more self-sufficient in power and more resilient in the face of international events.

We must also fix the grid. Right now, we are paying too much to constrain clean generation because the network cannot move power to where it is needed. Storage is developing, including pumped storage through hydro schemes and grid-connected battery storage, but we need to move faster. Looking ahead, we should be able to switch off gas-powered electricity generation to meet peak demand and use low-carbon alternatives instead. That would improve energy security and reduce exposure to volatile gas prices.

If we get this right, we can be far more ambitious about what Scotland gains from the transition. With clean power, grid investment and long-term certainty, Scotland should be a home not only for generation but for the businesses that build and maintain the components of this green revolution. Those companies should be able to use the power we generate at a fair market rate, supporting good jobs and stronger local supply chains.