The Scottish Government

MARINE ENERGY POLICY STATEMENT

Introduction

Scotland is blessed with some of the best resources for generating renewable energy anywhere in the world. Both onshore and offshore Scotland has the right environment and skills to create a world leading renewable energy sector. The Scottish Government is committed to developing these advantages to provide clean and green energy for our country and beyond.

The Scottish Government has the target of meeting 50% of Scottish demand for electricity from renewables by 2020; to do so will require the effective and successful development of new renewable technologies. Our policy is to establish a balanced renewables portfolio of both onshore and offshore technologies. We expect a major and continuing contribution from appropriately sited onshore wind farms, buttressed increasingly with capacity from new, developing sectors like offshore wind, marine, biomass and hydrogen and fuel cells.

Although we do not expect a huge contribution from the sector in terms of the 2020 target, there is little doubt that marine renewables (wave and tidal energy) has the potential to play a vital part in future energy supply and in energy as a key sector of the Scottish economy. The development of wave and tidal energy can give Scotland the potential for export of electricity and export of technology. Marine energy, as a renewable low carbon source will make a major contribution to our climate change effort. However, the exploitation of marine energy must be sustainable in line with the objectives of the proposed Scottish Marine Bill. The environmental and economic benefits which marine energy promises must be exploited responsibly but fully.

Benefits of marine energy

The scale of Scotland's marine renewable potential is vast - our total wave resource is estimated at 14 GW (10% of EU total) with 7.5 GW of tidal power (25% of EU total). The Scottish Government understands the opportunities presented by this powerful natural resource. Previous studies have examined how much of this resource could be developed, what contribution it could make to renewable electricity targets and the benefits it could bring to Scotland.

An earlier study forecast that at least 1300 MW of wave and tidal generation could be deployed in Scottish waters by 2020, or up to 10% of Scotland's total electricity capacity. Tidal power in particular has an added value in the context of a wider push to increase renewable generation, in that the output from such devices would be wholly predictable and thus able to offset or control variability across the rest of Scotland's renewable portfolio.

Scotland also has a long tradition of offshore engineering. This expertise gained in the oil and gas industry gives Scotland a wealth of engineering experience that can be drawn upon. The development of a successful marine renewable energy sector could sustain large numbers of direct and high value jobs in technology development and the manufacture and supply of components and devices.

Current Support

A number of initiatives have been introduced to support the development of the marine renewables sector in Scotland.

The Scottish Government has awarded grants to 9 marine energy projects through its Wave and Tidal Energy Support scheme. This scheme is worth over £13 million and is supporting the manufacture and deployment of full scale wave and tidal device prototypes in Scottish waters, mainly at the European Marine Energy Centre (EMEC) in Orkney. The scheme will also upgrade infrastructure at EMEC in preparation for the devices.

The scheme has ensured Scotland has the widest and most varied range of marine technologies being tested anywhere in the world. As well as supporting a number of indigenous Scottish companies the scheme has attracted foreign developers to locate and develop their devices in Scotland.

The Renewables Obligation (Scotland) has been amended to allow the provision of increased support to wave and tidal developers, providing visible, long term returns on investment to generators deploying in Scottish waters.

This amendment, known as the Marine Supply Obligation, requires suppliers with an obligation under the Renewables Obligation (Scotland) to meet a proportion of that obligation by producing from eligible wave or tidal generation in Scottish waters. Those suppliers who do so will receive increased payments through the obligation system.

There are also proposals to band the Renewables Obligation to offer multiple ROCs to marine energy suppliers.

In addition to putting in place funding mechanisms the Scottish Government has also supported the following infrastructure and research projects:

• Continuing and increasing support for EMEC to enable its provision of first class test facilities for marine developers. This infrastructure is vital to Scotland remaining at forefront of marine energy.

• A Strategic Environmental Assessment (SEA) of the development of wave and tidal power around the Scottish coastline has been conducted. The SEA has examined at length and in as much depth as possible the environmental impacts and effects associated with the deployment of a range and number of wave and tidal devices in the context of where the best resources are to be found. The SEA has concluded that between 1000 MW and 2600 MW could be developed by 2020 with generally minor effects on the environment.

SEA

Consultation on the Environmental Report of the SEA is now complete. The exercise has provided both a valuable focus on the issues surrounding wave and tidal development and a forum for the discussion of these issues amongst key groups including developers, environmental bodies, shipping and navigation interests, fisheries and other marine stakeholders.

The SEA provides the Scottish Government with a strong platform upon which to build, adapt and advance its ambitions for wave and tidal development around Scotland in the context of a wider strategy for renewable energy. It does this by identifying and defining a number of key areas in need of addressing.

Research and Monitoring - the SEA has identified a significant number of data and knowledge gaps. A degree of uncertainty surrounds the potential for development in a number of locations on the grounds that there is insufficient data for developers and other stakeholders, for example in knowing the distribution and presence of seabirds or other marine environment sensitivities. This could lead to time being wasted on advancing projects in unsuitable areas or, conversely, an overly precautionary approach ruling out projects in areas where they might be accommodated.

Locational Guidance - a number of respondents have identified the need for the work carried out under the SEA thus far to be built upon and used to identify a number of key zones or areas where preliminary developments should be focussed. There would be a number of key drivers behind such a process. This includes the environmental issues mentioned above and (but not limited to) the availability of port facilities to support deployment and maintenance, as well as grid capacity and connections. A Scottish Marine Bill will bring forward proposals for planning in the marine area, and it will be important that any marine planning system provides clear guidance on locational issues. Such guidance would be necessarily broad brush.

Site Selection Criteria / EIA Guidance - more information on the key criteria driving site selection, the issues to be considered and the approaches to monitoring and stakeholder liaison could be of significant value. This would need to be closely linked to any measures or functions introduced to co-ordinate research and monitoring.

Mitigation - the Environmental Report has identified a number of potential and specific mitigation measures, which could theoretically be implemented at the project level.

Socio-Economic Issues - the SEA highlights a need for much more detailed and updated information regarding the potential employment benefits from the sector's development (at both a local and a national level).

Grid - it is well established that the provision and availability of sufficient grid capacity will be vital to the development of Scotland's marine resource

The Way Ahead

The Scottish Government is resolute in its determination to help develop Scotland's wave and tidal resource, and believes strongly that Scotland can become a world leader both in the development and deployment of these technologies. Ministers believe that wave and tidal generation has a part to play in meeting its current renewable electricity targets, especially in the longer term.

The SEA process was based in part on the outcome of an earlier study that forecast 1300 MW of wave and tidal capacity in Scottish waters by 2020. The Scottish Government believes that its continued support for the sector, allied to the scale of the available resource, means that we should not place a limit at this stage on the capacity and contribution that wave and tidal power might make to Scotland's energy needs. The vital next stages are for the devices to prove themselves at full scale and to begin the process of driving down costs.

At the same time, Ministers recognise the vital importance of ensuring that the sector's development and Scotland's positioning at the head of a global marine renewables industry is achieved responsibly, with due regard to the needs and sensitivities of Scotland's marine environment and all users of the sea.

The Scottish Government believes that the inclusive and cross cutting approach which played such an effective role in the SEA process needs to be maintained as we take that work and try to help the sector move forward. That is why we intend to convene a Marine Renewables Policy Group ; properly established and populated, such a group would act as a strong vehicle for co-ordinating the development and implementation of a sector wide response to the SEA.

The Group would be chaired by the Scottish Government and comprise a small number of key industry, environmental and academic stakeholders. It will be charged with ensuring that all actions taken and work commissioned - whether on research, monitoring, or locational guidance - have the support of key stakeholders and the wider marine energy sector. We propose that the Group should have the following core membership:

• Scottish Government (chaired by renewables policy, but also including a representative from marine environment team)
• Scottish Enterprise and Highlands and Islands Enterprise
• Scottish Natural Heritage
• Fisheries Research Services
• Crown Estate
• Scottish Renewables Forum
• European Marine Energy Centre
• Maritime and Coastguard Agency
• Academic / research input

One of the key tasks faced by the Group will be to ensure that its programme of work incorporates the direct involvement and input of wider stakeholder groups and representatives as and when necessary.

The first task facing the Group will be to discuss and agree a route map for the sector's development. This will outline the steps necessary for the sector to move from current demonstration and prototype devices to full size market ready devices and commercial arrays. The route map will act, alongside the SEA, as a platform for the Group's activities, and inform the wider actions set out below:

• Research and Data Gaps. Taking the SEA findings into account, the Group will pull together any relevant work being undertaken across the UK, establishing research priorities, identifying the data and knowledge gaps which need to be tackled and the most appropriate means of doing so.

• Monitoring. The Group will establish guidelines for monitoring the effects of wave and tidal devices in the environment within which they are located and discuss arrangements for the gathering and sharing of such information. EMEC will have a vital role to play here.

• Strategic Locational Guidance. By drawing together data gathered during the SEA process and available elsewhere, the Group will commission a detailed analysis and map of the marine resource, overlaid with all known data regarding potential constraints or other limiting factors. This might take the form of a GIS map, balancing the resource against known constraints and identifying broadly the best potential sites for development.

• Environmental Impact Assessment. Building on the Environmental Report, the Group will offer comment on the production of guidance for developers on the compilation and scope of project level EIAs.

• Mitigation. The SEA identified a number of possible ways in which the effects of marine devices on the environment might be mitigated. The Group will consider these issues and how they might be addressed through the consents process. This may take the form of drafting and publishing a guidance document for industry and regulators.

• Grid. Grid capacity and access remains a huge issue for the development of renewable energy in Scotland. The Scottish Government recognises this as a priority and has established a grid stakeholders group which will act as a platform for a co-ordinated response to grid issues in Scotland. The Marine Policy Group will be able to feed in directly to the deliberations of this group, and ensure that issues affecting marine development specifically are considered fully and properly.

Conclusion

The Scottish Government is committed to maintaining Scotland's position at the forefront of the marine energy industry. The challenge to develop a world leading industry is great but the benefits of doing so, both economically and environmentally, are enormous and present an opportunity that Scotland must exploit fully.

Our key objective is to promote and facilitate the sector's successful growth. This needs to take into account not only the technological, operational and financial challenges facing the industry, but also the environmental effects (both positive and negative) and impacts on other users of the sea.

We believe that a joint approach, involving Government, industry, regulators and other stakeholders, focused on creating the right conditions and knowledge base, is the right way to proceed.

We are confident the actions outlined above, alongside the necessary levels of market support, will create the robust environment needed for the continued success of the sector in Scotland.