He told an international gathering that the Government would continue to create the right conditions for the renewables industry to boost economic growth and contribute to a low carbon economy.

Speaking at the All Energy 08 conference in Aberdeen, Jim Mather said:

"In our first year of government, we have put renewable energy at the heart of our vision of increasing Scotland's sustainable economic growth.

"There have been notable strides. Installed renewables capacity is now greater than nuclear capacity. The Scottish Government has set new, ambitious targets for renewable electricity, speeded up the planning process and determined 13 energy project proposals. We are looking at offshore grid links across the North Sea and with Ireland to export the electricity we generate. And along with industry, we have challenged the regressive electricity charging regime which acts against the development of renewable energy in remoter areas.

"With an excellent broad research and innovation base, our significant renewables potential and a Government willing to listen and act, Scotland has never been in better shape to become the green energy capital of Europe.

"Emerging technologies will have a pivotal role to play and this is especially true of wave and tidal power. We have approved the biggest wave energy project in the world in Orkney, and over the coming months we'll finalise details of the world leading £10 million Saltire Prize to stimulate innovation in marine energy.

"We will consult on amending the Renewables Obligation to ensure the right level of support for new renewable technologies, giving developers clear incentives to maintain Scotland's leading edge.

The Scottish Government has set a target to produce 31% of electricity demand from renewable sources by 2011, and 50% by 2020.

The Scottish Government's Energy Consents Unit is currently processing 35 renewable project applications - 27 wind farm and eight hydro projects.