Scotland could earn £2bn a year and become a world leader in new-energy technologies but will only unlock its full potential if energy policy is fully devolved.

Reform Scotland's report says: “As a result of Scotland’s natural energy resources, the strengths of the university research base, the energy companies based in Scotland and a favourable policy environment, Scotland could become a world-leader.”

It adds: “Scotland needs an energy policy that recognises this opportunity and removes the barriers to realising it.”

SNP MSP Rob Gibson, a member of the Scottish Parliament’s Rural Affairs, Climate Change and Environment Committee, says this shows energy policy must be devolved to allow Scotland to fully flourish.

The Caithness, Sutherland and Ross MSP said:

“This is a fantastic report that proves Scotland has a competitive advantage in many forms of energy technologies.

“Scotland has fantastic natural resources and assets to make an enormous contribution to renewable energy generation and carbon reduction – proven in this report that says we could earn £2bn a year exporting electricity.

“It is also encouraging to see support for the SNP’s policy of phasing out nuclear power stations and instead invest in new forms of energy production.

“This report recognizes Scotland’s potential and the UK Government must do the same and devolve full energy policy to Scotland.

“For Westminster to refuse to do this which would leave people asking why UK ministers want to stop Scotland from reaching its full potential.

“Scotland has the capacity to be a leader in sustainable development and export the technology and knowledge around the world.”