The islands have great potential for wind, wave and tidal energy, and can make a huge contribution to the growth of renewables.

In response to the UK and Scottish Government's report into Scottish islands renewable energy projects, Niall Stuart, Chief Executive of Scottish Renewables, said:

"This confirms what we have been arguing for some time. It makes no sense to UK consumers or the Scottish islands for renewable energy projects to be held back by massive transmission charges.

"The islands have great potential for wind, wave and tidal energy, and can make a huge contribution to the growth of renewables, and the cleaning up of our energy sector. Likewise, local economies would receive a massive boost from the likely investment and jobs that could be created by projects on the islands.

"Our world-leading wave and tidal industry will not progress unless government intervenes to bring down charges, which are currently estimated to be up to 7 times higher on the islands than the mainland.

"This is welcome recognition of the problem, but we now need to see a solution that will bring charges down to a level that allows renewable projects to go ahead. That could be a cap on charges or an additional level of support for generators, both of which are questions that can only be answered by the UK Government. We also want to see Scottish and UK governments look at drawing down funds from the European Investment Bank, which could be used to help fund the necessary island grid infrastructure at a lower level of interest."