First Minister Alex Salmond
Scotland's Role in the EU Energy Strategy
Aberdeen
Friday, February 22, 2008
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I'd like to thank the European Movement, Aberdeen University and Aberdeen Council for organising this conference.
And can I take this opportunity to recognise the work of the European Movement in raising awareness and understanding of the EU in Scotland.
As a patron of the Movement, I've seen at first hand how hard you work towards fulfilling your stated purpose.
And it is a testament to the importance we Scots place on our engagement and relationship with Europe that my fellow patrons include the man I replaced as First Minister, Jack McConnell. A former Deputy First Minister. And a former Secretary of State for Scotland. And you have a former leader of the UK Liberal Democrats as President!
Throughout my career in politics I have always argued for the strong, active and direct involvement of Scotland in European affairs. It is only through active engagement - rather than passive observation - that you can seize the real opportunities that Europe presents - in business, in government, in research and innovation.
I am therefore delighted that the European Movement has chosen to focus today's conference on energy, where we have expertise that can be used to unlock real opportunities for Scotland in future.
As will be clear from my remarks this afternoon, I believe that Scotland has an immense amount to offer - and the capacity to lead the debate on energy policy and the fight against climate change. As a key part of that, I am proud to announce today our commitment to develop a new Scottish European Green Energy Centre, with a hub here in Aberdeen.
Later in this speech I will set out the vision and aims of this new Green Energy Centre.
With scarce renewable resources and a growing climate challenge, energy matters are at the heart of Europe's economic policy, its environment policy and indeed its foreign policy.
There is an old Chinese curse: 'may you live in interesting times'. Well, indeed we do. Although I am sure that none of us here today would prefer to be without the great opportunities that lie before us.
In 2006, the Green Paper on Energy set out six priority action areas to prepare Europe for the demands of a new energy age and to balance the needs of sustainable development, competitiveness and security of supply.
In November last year, the European Strategic Energy Technology Plan set out proposals to accelerate the development and implementation of low carbon technologies.
And last month the European Commission published its keenly anticipated climate change and energy package.
We welcome that package, and its confirmation of the ambitious targets on climate change and renewable energy that the European Council agreed last year.
The commitment to reduce Europe's carbon emissions by as much as 30% by 2020, - and to boost renewable energy's share of Europe's energy mix to 20% - sends out a signal to the rest of the world about Europe's ambition for the future.
Specific targets for individual Member States will, of course, be subject to negotiation. Scotland will do everything within our power to help the UK meet its commitments, when these are agreed by the European Council.
And we are going further, setting our own ambitious targets. As a nation with immense energy resources and potential, we want to be at the forefront of Europe's energy revolution.
Indeed, Scotland is leading the way in the UK in the fight against climate change and the push to harness new forms of energy.
Just a few weeks ago, our consultation on the Climate Change Bill set out our intention to establish a statutory target to reduce Scottish emissions by 80% by 2050 - and a framework that will provide the basis for action over the next 40 years.
I believe that that target, - and the actions we will take to achieve it - will place Scotland at the forefront of the global fight against climate change.
And as a vital component of that strategy we have shown leadership on renewable energy. By 2011, Scotland will meet at least 31% of our electricity demand from renewables. By 2020 we intend to meet at least 50%.
We can be confident that Scotland will achieve its ambitious targets on renewables.
Scotland's potential is enormous - unrivalled in Europe. It is estimated that we have one quarter of Europe's total off-shore wind resource. As much as one quarter of the total tidal resource. And 10 per cent of its wave potential.
We should recall that not long ago Scotland's climate was seen as something of a drawback. Well no longer. Now our powerful waters and our high winds - onshore and offshore - are the envy of Europe, and the key to future prosperity!
Scotland's renewable energy resources provide an opportunity not just to meet the needs of Scotland's people - but also to establish ourselves as world-leaders in the technologies that will help to guarantee Europe's energy future.
We need to encourage those already working in energy technologies, such as the offshore contracting sector, to build on their existing expertise by diversifying into new renewable and low carbon technologies.
Already, there are many exciting projects in place or in progress:
- the Beatrice Talisman/ SSE project, using Scottish skills in deepwater technology to tap our offshore wind resource;
- the UK's largest operating biomass plant (Eon at Lockerbie)
- the groundbreaking gasifier technology being installed at the district heating scheme in Wick
- the world's first community-owned renewable hydrogen project, in Scotland's most northerly island (Unst)
- and support is in place for what is set to be the UK's first grid-connected tidal energy device (Open Hydro)
- the world's largest wave-power array (Pelamis)
My Government is determined that we do not repeat the mistakes made by the UK Government in the 1980s and 1990s, which killed off Scotland's nascent wind turbine industry.
At that time, we failed to give Scottish turbine manufacturers the support they needed to establish a leading position in global markets.
Today, instead of going to Scottish companies, new windfarm developments rely on the availability of turbine technology developed in Denmark or the United States.
That short sighted approach cannot make sense for Scotland's economy. We need to invest in the technology of the future rather than, as too often, importing the technology of the past.
So my Government is committed to using every lever at our disposal to transform our considerable potential into reality - into projects that deliver energy to homes and businesses throughout Scotland, and beyond.
We have a wave and tidal support scheme that's already supporting 9 cutting-edge wave and tidal projects, and our renewables obligation includes the UK's highest level of support for wave and tidal generation.
We will soon consult on proposals to provide additional support for certain technologies through 'banding' of the Obligation.
We are developing an action plan for the production of renewable heat, and we've committed to triple the funding for microgeneration and community renewables. We will shortly set out our package of support
As well as focusing on the increasing generation of renewable energy, we are working on transmission to ensure that electricity from our areas of greatest potential can be connected into the grid.
Here I would like to thank Commissioner Piebalgs for his support in encouraging the UK Government - particularly OFGEM - to move away from its unfair and discriminatory regime for transmission charges. Although the Commissioner can't be here today I am pleased to welcome Peter Vis from his Cabinet.
We are continuing to raise this issue with OFGEM and we hope they will agree to move to a fair charging system that not hinder the development of Scotland's renewables industry.
We are also working on two studies into the potential for offshore grid connections to Ireland and across the Northern North Sea. We want to help make the commercial case for these "supergrids", maximising the potential for offshore renewables and enhancing Europe's energy security.
Renewables will be vital for the future. But as we think about Scotland's energy mix in the short to medium term, we know that we will not be able to rely on renewables alone. And I could hardly come to Aberdeen without talking about our oil and gas industry.
For the past four decades, the industry has created jobs and prosperity for this city, - and, by the way, generated billions for the UK Treasury that should be being invested in Scotland's economic potential.
With good stewardship, I am convinced that North Sea fields can continue to yield their precious resource for the next 40 years. As the European Commission has recognised, we will continue to rely on fossil fuels for many years to come.
But while we see a continued need for oil, gas and other hydrocarbons, we fully appreciate the need to minimise their harmful environmental impact.
As I have already made clear, we take our climate commitments seriously.
That's why my government has so passionately supported the idea of Carbon Capture and Storage for gas and coal.
With our technological expertise, and real experience of working in deep waters offshore, Scotland has the potential to lead the way in this exciting new field. It offers an enormous opportunity not just for our environment, but for our economy too.
It was a great disappointment for Scotland that the UK Government let slip a golden opportunity to develop a carbon capture and storage facility at Peterhead.
But as we saw from Scottish Power's recent announcement of a major study into the possibility of carbon capture under the Firth of Forth, there are other possibilities.
So I welcome the Commission's proposed Directive on Carbon Capture and Storage, and the intention to establish European demonstration projects to test the technology.
We expect to have an important role in influencing the UK negotiating position on that Directive, and look forward to the further consultation promised by the Commission.
And we believe that Scotland is still an ideal location for carbon capture technology - both as part of the current UK competition and as part of the proposals from the Commission for encouraging demonstration projects.
When it comes to energy, Scotland has something to offer Europe across the board. In renewable energy research and development. In carbon capture and storage technology. And in the expertise we have built up through decades of work off-shore.
We can also benefit greatly from partnership with European countries, whether they be neighbouring countries or further afield.
Above all, we can offer a powerful shared commitment between Government, industry and our universities.
Our universities and industry punch above their weight, - and here at Aberdeen University, and in Glasgow and Edinburgh, we have seen them come together through the new Energy Technology Partnership, and its work to develop and disseminate ground breaking renewables and low carbon research.
Professor Jim Macdonald has already spoken about this new exciting initiative, and the work to place Scotland at the centre of UK, European and world research on renewable and low carbon technology.
Now we want to draw on the strengths of the Energy Technology Partnership by setting up a Scottish European Green Energy Centre.
Commissioner Piebalgs and I had a very constructive discussion about this proposal last year. And Mike Russell, the Scottish Environment Minister, recently raised it with Commissioner Potocnik, who leads Europe's research and innovation policy.
I am delighted that both Commissioners gave strong support to our idea and encouraged us to take steps now to set up such a Centre. We have a tremendous opportunity here to harness our European connections and make them work for all our benefit.
The centre will be based alongside the ETP's Aberdeen hub. It will build on the broad network of European research and industry wide partnerships we already have in place, and enhance them with new and strengthened links on new projects.
It will work closely with the Energy Technology Partnership, drawing on the real strengths that Scottish researchers already have in fields such as marine and tidal renewables, deepwater technology, biomass and distributed electricity systems.
From a Scottish base, it will link into key EU partner countries - north and south, east and west. And one immediate priority is to create stronger links on diversification into new technologies between Aberdeen and its fellow North Sea oil and gas capitals of Stavanger and Groningen.
The centre will also drive co-operative research and development into key green technologies and work with industries throughout the EU to promote commercialisation. And it will promote and disseminate good practice throughout the Union, and beyond, to help the EU meet its ambitious targets on renewables.
In the short term, we will build on the many existing initiatives already in place, and secure EU funding streams in energy and research to support the activities of the centre. I am also delighted to report that Scottish companies are keen to give this project their full support (e.g Scottish Power)
For the longer term, our aspirations are even higher.
We want to see Scotland as a full and equal partner with our fellow countries in the North West Atlantic, actively deploying the new energy technologies for the benefit of all. With Scottish based industry and research at the forefront of European and world developments in this field.
I want Aberdeen - and Glasgow and Edinburgh for that matter - to be the real European energy centres of the future as well as the present.
And within five years, we want this to be established as the EU Energy Research Centre.
Scotland is ready to play its part in shaping Europe's energy future. As a small, energy rich country, we have much to offer - and much to gain from coordinated action on shared European objectives.
So we will make our voice heard on the Commission's proposals on renewable energy, on climate change, on carbon capture and on other key areas. And through our new Green Energy Centre, we will take forward vital research and development that will help shape future technologies.
Of course, I believe that Scotland could achieve even more with independence, and the power to take all of the decisions that will shape our energy destiny.
We do not need to look far back to see examples of countries reclaiming their nationhood, and going on to play a leading role in the EU.
Indeed, if the Commissioner had been able to make it, he and I would smile in remembering that in 1990, just after the fall of the Berlin Wall, a Russian boat sailed into Peterhead harbour, just 30 miles from here, under the Soviet Union's flag. And it sailed out of harbour a short time later proudly flying the flag of independent Latvia.
Within two decades, Latvia - with half of Scotland's population - is a member of the EU and holds one of the most powerful portfolios in the European Commission.
And Slovenia, also a nation with roughly half of Scotland's population, is currently the President of the European Council.
I will not ask our visitors, whether from the Commission or elsewhere, to pronounce on the relative merits of Scottish independence. I know that you have to tread carefully on these matters.
But I doubt it would escape the attention of anyone here, the imbalance between the great scale of Scotland's potential, our resources and our ambition - and the modest status that we have formally within the European Union.
I look forward with great anticipation to the day that Scotland can take its own rightful place in the Council of Ministers, and contribute directly to the debate on Europe's energy future.
But until then, we will use every power at our disposal to meet Scotland - and Europe's - energy needs.
And we look forward to working with all of you in doing so.