How can energy supplies be secured at an affordable price with many of our power stations due to close, climate change targets be achieved and economic benefits from the energy industries be maximised?

While we often hear rhetoric about Scotland as potentially "the renewable energy powerhouse of Europe" and much is now happening, including the Glendoe Hydro Scheme at Fort Augustus, we are still way behind. Today I'd like to set out some of SCDI's priorities and ask Highland businesses for their views.

Firstly, we all need to recognise the value of energy efficiency, so-called "nega-watts". We need to decarbonise heat — incorporating more microgeneration — and transport. In the Tornagrain new town, the Highlands can demonstrate leadership.

Secondly, we should recognise that a mix of technologies will be needed. SCDI is in favour of new nuclear generation. But no-one should be under any illusion that nuclear, offshore wind or marine energy can replace more onshore wind farms.

Thirdly, we must bite the bullet and get on with the Beauly to Denny line upgrade. Without it, the lights may go out and carbon emissions up. It's that simple. Grid connections and planning must be speeded up. We also need to build support for onshore windfarms e.g. Falck Renewables has been enabling community investment.

Fourthly, we need to promote new technologies. Last week in Aberdeen 25 organisations from the Highlands and Islands exhibited at Europe's biggest renewable energy conference. Inverness-based Wavegen has just published plans for a new wave power station on Lewis, one of the first in the world.

The potential for exports is huge. At the conference, the Victoria State Government expressed a particular interest in our marine technologies. Commercial offshore windfarm development in Scottish waters has just moved forward following an announcement by the Crown Estate.

Fifthly, we need to recognise that these technologies will not get into the water under the current unfair transmission charging regime. SCDI recently set up a meeting for Highlands and Islands organisations with senior executives of National Grid Company. We welcome their commitment to a new method. Crucially, the energy industry needs the people with the right skills to do the R&D and build the projects. An estimated extra 50,000 so-called "green jobs" might be created over the next 10 to 15 years. Inverness College UHI is already leading the way on micro-renewables technologies, but there many more opportunities.

Finally, the UK Government also needs to recognise that a healthy economy is an essential springboard to investment in a lower carbon economy. Fuel duty is now hammering many Highland businesses and this must be addressed.

The space race to the Moon in the 1960s is a frequent comparison for the global energy challenge. But while it was an extension of the arms race, the energy race can only be run collaboratively and is one that we all win or we all lose. I believe that the Highlands can win big.

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