Dr Peter (right) CEO, Scottish Engineering, said a lack of clear direction on energy policy was causing concern among utility companies trying to plan for future needs. The issue was exacerbated by Westminster and Holyrood having different approaches to energy policy. The SNP government is opposed to nuclear energy, while there are plans to build nuclear plants in England.

Scottish manufacturers are warning the Westminster and Holyrood that a failure to give clear direction on energy policy risks leaving the country with a power shortage. Firms across Scotland have inundated trade body Scottish Engineering with concerns about the long-term security and sustainability of their electricity supplies.

One emerging sector that has real cause for concern is the fledgling Data Centre business, which relies implicitly on both steady power sources and good international cable networks for its survival.  Tempting to wonder if  the close on £600m Edinburgh tram costs (£512m project: overrun currently £80m) might not have been better spent on powering the infrastructure of digital and powered Scotland.

Anxiety has intensified over the past week following energy regulator Ofgem's warning that £200bn will need to be invested in infrastructure following confusion over a £1bn UK-wide competition to build a clean-coal power station.

German energy giant E.ON is facing difficulties meeting the 2014 deadline and last week it postponed its plans to build a station in Kent, blaming planning delays. Amazingly it has been allowed to stay in contest with ScottishPower and RWE npower to secure the government funding. Fears are that this will delay the project by two years.

"In the past we have tried to encourage the Scottish Parliament to embrace a balanced energy policy, including all proven methods of electricity production like oil, gas, coal-fired generation as well as renewable and nuclear," says Hughes. "Now we are concerned by the Westminster government's inability to offer clear guidelines over the future development of clean-coal power stations.

"Having initiated a competition offering £1bn to the company able to provide a clean-coal facility, the government appears to be allowing E.ON to enter the contest while actually putting a hold on the construction of its plant."

He points out that of Scotland's three main power generators, ScottishPower, British Energy and Scottish & Southern Energy, are heavily involved in the development of clean, renewable technologies and said that all would welcome clarity on the future direction of energy production.

"Utility companies require some certainty to allow them to plan investment for the future. They cannot keep current plants operational on a long-term basis without having some real direction from politicians on the shape of the energy map for the future. As a result, investment is already being reduced on the various older plants which are still in existence."

While recession has reduced some of the immediate demand for power, adds Hughes, ominously: "If, as I hope happens, we see a significant upturn in production requirements after the turn of the year, then you can bet your life that the current generation units will be put to the test."

Hanging in there on renewables
CEERE will focus on managing all the stages – from design to asset monitoring – of SSE’s portfolio of onshore and offshore wind farms in Europe  It is being set up in partnership with the University of Strathclyde and will create around 300 jobs. The authority also gets a two for one benefit from a location that also offs the University of Glasgow as pioneering power engineering energy.

"Having considered all of the options in mainland Europe, Ireland and the UK, we have settled on Glasgow as the best location for CEERE," said SSE CEO, Ian Marchan (right). "Working with the University of Strathclyde, and with the support of the Scottish Government, we will create and secure several hundred skilled jobs for Scotland."

Until CEERE is completed over the next three years, Strathclyde will host short-term accommodation for SSE. SSE has also announced that Dublin-based Airtricity's renewable energy business, its renewable energy development division, leading developer of renewable energy in the UK and Ireland, is to be renamed SSE Renewables, with the rebrand to take effect from January 2010.

Whistling up the wind
A smart Grid