Scottish taxpayers have lost about £35 million as a result of investment in renewable energy firms which went bust, MSPs have been told.

Economic development agency funds were “badly used or misused”, claimed economics professor Tony MacKay during an oral evidence session organised by the Scottish Parliament’s economy committee. The committee is investigating the Scottish renewable industry in the light of UK government subsidy cuts.

MacKay argued the collapse of flagship marine energy companies Aquamarine and Pelamis showed that public money could have been “better used”.