Ofgem has announced that grid charges for electricity generators in Scotland are to fall from April 2016. It has also confirmed that plans for a £1.2bn upgrade of a high-voltage grid in the north of the country have been approved. The ambitious project includes a subsea link between Caithness and Moray.

Welcoming the announcements, First Minister Alex Salmond said it will enable the connection of more renewable energy generation in the north of Scotland and help to meet renewable targets at a lower cost to consumers.

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He added: "They support the transition to a low carbon economy by encouraging renewable generation in the areas of highest resource and ensure Scotland continues to play a vital role in delivering security of electricity supply across these islands.

"Ofgem's decision to reduce the level of discriminatory grid charges for electricity generators in Scotland is particularly welcome. It follows lengthy and detailed consultation with stakeholders and the outcome is underpinned by robust analysis that demonstrates clear benefits to consumers.

"The £1.2 billion investment by Scottish Hydro Electric Transmission will ensure continued progress towards our renewable energy ambitions, play a role in supporting future island generation and support hundreds of jobs during construction.

"It also underlines once again the essential role that renewable energy in Scotland has to play in meeting the UK's long-term energy requirements."

(JP/IT)