When it comes to wind energy in the UK, all eyes are on Scotland

While wind turbines haven’t gotten a great reception in the US, they are becoming quite common in the European Union (EU). In fact, the EU is on track to have one-half of their power from wind by 2050. The UK doesn’t want to be left out and may have major plans to expand their renewable energy programs in the rainy and windy hills of Scotland.

Just this past Monday the UK hit a record with 5% of the country’s energy coming from wind. According to the National Grid, wind turbines that were largely located in Scotland produced 1,860 megawatts which is around the same amount of juice from four nuclear power plants. That number could jump to 10% if low voltage electricity from smaller wind farms is taken into account. 4

Scotland’s geography makes it a major player in renewable energy because it’s home to about a quarter of all wind and hydro-electric power locations in Europe. A plan launched by Scotland’s First Minister Alex Salmond may make the state-owned utility, Scottish Water, a major star in renewable energy. The bill would allow Scottish Water to partner with other firms to create wind farms or build hydro-electric power plants. The deal could be huge since Scottish Water already controls 80,000 acres of land and has an impressive pipe network. Some estimate that the publicly owned company could earn an extra $460m a year through the plan.

Like any other political arena there’s a catch to expanding Scottish Water’s role in renewable energy. In the 1980’s, Prime Minister Margaret Thatcher and the Conservative Party had a fire sale for a number of state-owned companies. They sold off British Rail, Jaguar, British Gas, and British Petroleum. The party is still pushing to partially privatize Scottish Water, a process that would quickly hand the government $4.62b. The firm would be able to borrow money instead of relying on cash from the Scottish government to fund their operations.

The political balance in the UK hangs squarely in favor of the business minded Tories since May and may derail the future plans for Scottish Water’s 80,000 acres. The only question is will the government want to be on the fast track for wind and hydro-electric power or pocket a quick paycheck?