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5. Meeting Scotland's energy needs : generation and supply
In order to reduce carbon emissions it will be important that our use of fossil fuels for power and heat reduces, and that, where it continues, combustion is carried out in ways that reduces emissions.
Development of new technologies and industries will be led by the private sector. The EU Emissions Trading Scheme ( EUETS) will provide an important incentive for such change. However, the public sector needs to ensure a supportive context. Barriers to development of new technologies must be addressed. Some actions are for the Scottish Government itself, some for other public sector players while there is also a need to influence and help form policy on a level broader than Scotland alone.
The sections below give a brief indication of current actions in different sectors.
Production and supply of Heat
Heat usage in Scotland is estimated to account for 57% of our total energy demand, with 50% of that figure attributed to the domestic sector. Priorities for energy policy are reducing carbon emissions associated with heat - through promoting use of waste heat, combined heat and power plants and renewable heat sources. Renewable heat sources can help reduce reliance on oil in areas off the gas grid and potentially reduce energy costs and alleviate fuel poverty. All of these sources of heat also offer opportunities for business development and growth.
The Scottish Government is in the early stages of developing its approach to heat. A sub-group of FREDS has made recommendations to the Scottish Government on how to develop the renewable heat market in Scotland. The Government will take these recommendations into account in drawing up its Framework for Renewable Energy.
A range of technologies produce renewable heat: including: biomass, heat pumps, solar heating, energy from waste, anaerobic digestion and geothermal. The Scottish Government can provide financial support for the deployment of these in certain circumstances with support focused on community and micro generation.
The Scottish Government will now undertake further work on:
- use of waste heat from industrial processes;
- Combined Heat and Power (with renewable and fossil fuel energy);
- the infrastructure required to carry such heat to consumers;
- further incentives to promote renewable heat.
We will learn from others addressing the same issues including the UK Government.
Production and supply of Electricity
Scotland's electricity is currently produced by a small number of large coal, gas and nuclear generating stations, together with a larger number of smaller renewable plant (mainly established hydro and onshore wind). We wish to move to a much greater proportion of renewable energy together with clean energy from coal and gas.
Electricity: Renewable sources
Scotland already meets 16% of its demand for electricity from renewable sources- primarily hydro and onshore wind. Progress towards the target of renewable generation meeting 50% of demand for electricity by 2020 will be driven mainly by the Renewables Obligation legislation, which obliges licensed electricity suppliers to secure increasing amounts of their supply to customers in Scotland from eligible renewable sources. The Scottish Government wishes to see a balanced mix of renewable technologies and therefore supports UK plans to amend this mechanism to provide varying levels of support to different technologies and thus drive the development of less mature technologies. The precise nature of any changes to the Renewables Obligation Scotland ( ROS) will depend on full consultation and the subsequent agreement of the Scottish Parliament.
Emerging technologies are also supported with grants for capital expenditure, for example, the development of wave and tidal capacity, where we have a technological lead and a huge potential resource, the development of hydrogen fuel cell technology and the deployment of biomass energy which is underdeveloped in Scotland and the UK more generally. We also believe that there is significant offshore wind potential in the deeper waters around Scotland, and are partners with the UK Government in a Strategic Environmental Assessment.
As noted, Scotland has a specific competitive advantage in marine energy derived from our natural resource, research base and companies developing and deploying marine devices. To assist this a range of partners have invested in EMEC, the European Marine Energy Centre which provides test sites connected to the grid at sea off Orkney, In addition, the Scottish Government's Saltire Prize will provide a further stimulus to marine energy. We expect to see marine energy beginning to make a contribution by 2020 but developing at substantial scale in the decade thereafter. We are working with partners to examine the possibility of sub-sea grids which would allow export of this resource.
The Scottish Government is on track to meet its renewable electricity target for 2020 and the interim milestone for 2011. Annex A provides relevant statistical information.
Electricity: nuclear power
In meeting the remaining demand for electricity nuclear energy will continue to play a part for the life of the current power stations. But the Scottish Government is clear that new nuclear power is not wanted or needed in Scotland. There is no clear or reliable proposition on storage of nuclear waste and we are not willing to countenance such very substantial and also open-ended costs for this and future generations.
Electricity: fossil fuels
Coal and gas will continue to play an important part in electricity generation, providing baseload, but there is a clear need for a reduction in associated emissions. We want to see Scotland playing a leading role in the development of carbon capture and storage ( CCS) technology to allow us to continue to utilise fossil fuels while reducing the level of harmful emissions being released into the atmosphere. As elsewhere in Europe, the Emissions Trading Scheme will provide a commercial incentive for investment. With existing skills and know-how from involvement in the North Sea, Scotland is well placed to take a lead and generate wider economic benefit. The Scottish Government is: assisting research on storage locations; pressing the UK Government for quick action; and seeking to be fully involved in European action to support CCS.
Microgeneration
A range of micro-renewable technologies can supply heat and power. These can assist in tackling climate change. They can help to reduce carbon dioxide emissions from homes, small commercial buildings, and community buildings, such as leisure centres and schools. But perhaps the more important impact of creating our own energy through microgeneration is that it can bring about a better sense of responsibility, raise awareness and engage others in the individual action we can take in tackling climate change. In addition, where microgeneration allows those off the gas grid to reduce or avoid oil consumption there are real cost benefits and impacts on fuel poverty. However, there are a number of barriers to increased uptake of microgeneration and these are being addressed by the Government. They include the planning and building standards regime, quality of information and advice and clear information about payback periods. An Action Plan setting out recent and planned actions will issue later in 2008.
Meanwhile in 2008/2009, the Scottish Government has tripled funding available to support community and microgeneration.
Security of energy supply
The operators of the electricity grid ensure supply on a day-to-day basis. Scotland is currently an exporter of electricity although the interconnector with England can import electricity if needed. The Scottish Government wishes to see Scotland continue as an exporter of electricity for economic reasons but also wishes to see Scotland able to meet its own needs in relation to electricity for reasons of security of supply, while acknowledging the potential to import; such as Norway does in exporting Hydro Power and importing power from other sources as occasionally needed. To this end we will continue to research and debate with key stakeholders the potential of sub-sea interconnectors and other appropriate upgrades to the grid infrastructure.
Some current generating capacity will come to the end of its life over the next 20 years, including nuclear stations. However, the Scottish Government does not consider this is a threat to supply. The operation of the regulated market with the signals this sends to incentivise generation makes it inconceivable that there will not be investment in new generating capacity in Scotland as can be seen from the investment activity across the energy sector in Scotland. The Government is however in dialogue with BERR and OFGEM to ensure that regulatory mechanisms- such as the transmission charging regime- do not pull investment away from Scotland and, in the case of renewables, from more remote areas of the UK but rather encourage exploitation of renewable resources - which are found predominantly in Scotland.
The Scottish Government also works closely with the energy industry, local authorities and key responders (e.g. Police and Fire) to ensure they have robust contingency plans in place for energy emergencies. This includes close liaison with the UK Government and appropriate regulators to ensure that Scottish issues are represented, progressed and that best practice is implemented.
More widely, the Scottish Government engages closely with UK Government to ensure that Scotland's national infrastructure is resilient and well protected. The national infrastructure is the underlying framework of facilities, systems, sites and networks necessary for the functioning of the country and the delivery of the essential services which we rely on in every aspect of our daily life.
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