The government stated that the prospective resources for onshore wind, wave, and tidal power can be instrumental in meeting UK’s 2020 renewable targets.

Despite huge resources, the growth of clean energy sector of the country is blocked by high transmission costs that include cost of grid access and expensive transmission links.

Scottish Renewables chief executive Niall Stuart stated that the study further validates its high transmission charges concern that are key for the progress of renewable projects in the islands.

Energy and Climate Change State secretary Edward Davey said, "The Government is keen to unlock the potential for the development for renewable energy on the Scottish Islands, but it’s vital that projects represent value for money for the consumer.

"The report being published marks a considerable step in progress towards making decisions about supporting renewables investment on the Scottish Islands," added Davey.

RenewableUK Wave and Tidal development manager David Krohn said, "The Scottish Islands are blessed with great wind, wave and tidal resources, and development there can kickstart our nascent marine energy industry. However, as this report shows, unless action is taken to offset the higher network costs in these areas, we simply won’t see the contribution that we need to from these areas."

Meanwhile, Scottish Renewables claimed that the high transmission costs can be handled through subsidizing options along with an additional level of support for generators.

"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," added Stuart.