Scotland’s island economies could benefit from up to £725 million over the next 25 years from renewables projects according to an independent report published this week.

Scottish islands have some of the best renewable energy resources in Europe – from wind, wave and tidal.

The Western Isles, Orkney and Shetland have the potential to supply up to 5 per cent of total electricity demand in the GB market by 2030.

The report, which was commissioned by the Scottish Government and published by Baringa, provides analysis of the scale of the economic opportunities available to the Scottish Islands from further deployment of renewable energy.

With appropriate investment in grid infrastructure and generating assets, renewable energy deployment on the Islands could grow rapidly by the early 2020s.

Delivering this increased level of deployment could result in:

• Economic benefits up to £725 million for the island economies, including up to £225 million in community benefits

• Local economic stimulus at peak of up to £83 million a year or an additional 5% boost to local economic output on average across the Islands

• Revenues to community owned equity totalling up to £390 million for local communities from island generation projects

• Employment boost of up to 2,000 jobs created in the peak development phase across the Islands

• Alleviation of grid constraints in the Orkney Islands alone that could increase income to existing wind developments by around £2.7 million annually

Commenting on the report from Stornoway, Minister for Business, Energy and Tourism, Fergus Ewing said: “This report confirms the potential of the vast renewable resources of our islands. They are arguably the best places in Europe to deliver renewable energy.

“The wind speeds are the strongest and they have the best potential for wave and tidal energy in the future.

“The potential considerable economic and employment benefits from renewables means it is vital for the UK Government to deliver on their commitment to the islands.”