This independent research found that Scotland can hit its target of 50 per cent of electricity from renewable sources by 2020 and would economically benefit from continuing to export power to the rest of the UK.

The report highlighted that releasing this potential will require £10b billion of investment in new electricity generation and that the Beauly-Denny power upgrade is critical if a high level is to be made in the Highlands. This is a huge opportunity to create a supply chain and jobs. SCDI has since written to the National Grid arguing that transmission charges for electricity generated in the Highlands should be made fair to promote this investment.

But electricity is only around a third of the energy consumed. The other, often neglected in discussion, two thirds are from heating and transport. I have also recently provided evidence to the Scottish Government on increasing the renewable element in these areas. I believe that the Highlands have the opportunity to play a leading role in this revolution.

For instance, the whisky industry is exploring investment in converting distilling co-products into alternative fuels to supply cleaner heat and electricity. The £20 million investment plans by Alchemy Plus for Scotland's most advanced utility computing centre at Inverness Harbour are another great example. Not only will its power needs be met from renewable electricity, but the excess heat it generates will be used to warm other new developments — shops, business units and, hopefully, a major hotel. The Highlands also have abundant biomass and geothermal resources. Ministers propose that 11 per cent of heat should be renewable. I think that there is the potential to go even further.

Transport is the third pillar in the energy debate. All the major car manufacturers are currently working on models with a traditional engine and an electric motor which is recharged by plugging it into the electricity grid. Particularly if this electricity is generated by renewable sources, this would reduce the carbon emissions from transport. Creating a new network of public charging points on streets and roads is therefore vital.

The Scottish Government has recently announced that the Highlands will benefit from more road infrastructure investment than for many years. This will require new fuelling stations. With the dualling of the A96 between Inverness and Nairn and the new link road to the A9, plans for new sustainable communities and commercial developments, and the new campus for Inverness College and energy technology companies, and the Highlands' renewable electricity resources, this may be an opportunity to be among the pioneers.

The last few months have been the hardest for the economy for many years. But a new, more sustainable economy will have to rise in the years ahead. With the right policies and joined-up thinking on new investment, the Highlands can be optimistic about a leading role. On behalf of SCDI, I wish you a happy Christmas and a more prosperous New Year.

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