"Renewables will play a key role in future greenhouse gas abatement and that increasingly the uptake of renewables has to be a non-negotiable element of future energy use."

Energy : The Changing Climate, Royal Commission on Environmental Pollution. 2000

1. Encouraging more electricity generation from renewable sources is an integral part of both the UK and Scottish Climate Change Programmes and the Scottish Executive is committed to increasing the amount of renewable energy generated and used in Scotland. The mechanism for promoting renewable energy generation is provided through ‘renewables obligations’. These are explained in more detail in paragraphs 7 to 9. The land use policy framework for achieving this is set out in the National Planning Policy Guideline (NPPG) 6 : Renewable Energy Developments published in November 2000. The purpose of this Planning Advice Note (PAN) is to support the policies in NPPG 6 by providing information and advice on the technologies for harnessing renewable energy for electricity generation. It should be noted that not all renewable energy proposals fall to be determined under the Town and Country Planning (Scotland) Act 1997 and the advice in this PAN will be equally applicable in the authorisation of proposals under Section 36 of the Electricity Act 1989 (see paragraphs 5 and 16&17).

"Renewable energy sources shall mean renewable non-fossil energy sources (wind, solar, geothermal, wave, tidal, hydropower, biomass, landfill gas, sewage treatment plant gas and biogases)"

EU Directive on "The promotion of electricity produced from renewable energy sources in the internal electricity market" Sept 2001

2. In 2000 the UK Government, as part of its support for the Climate Change Programme, announced its new policy on renewable energy. The aim is to stimulate further the development of the UK renewable energy industry. The objective is that by 2010 10% of UK electricity requirements will be met from renewable sources. The policy has 5 key aims :

• to assist the UK to meet national and international targets for the reduction of emissions, including greenhouse gases;

• to help provide secure, diverse, sustainable and competitive energy supplies;

• to stimulate the development of new technologies necessary to provide the basis for continuing growth of the contribution from renewables into the longer term;

• to assist the UK renewables industry to become competitive in home and export markets and in doing so to provide employment; and

• to make a contribution to rural development.

3. In Scotland existing hydro schemes account for about 11% of electricity generation with new renewable energy projects under the original Scottish Renewable Obligation (SRO) arrangements adding another 2% to that figure. A further increase of 5% is proposed in Scotland under the new Renewables Obligation (Scotland) which will take the Scottish total to about 18% by 2010. Further development is envisaged beyond 2010.

Technologies not covered by this PAN

4. There are a number of renewable energy sources such as solar and geothermal that have potential to contribute to renewable energy generation and energy efficiency measures, all of which have the potential to contribute to the climate change objectives. However, these are not covered by this PAN.

"Proposed Consents Process for Offshore Wind or Water Driven Generating Stations". Consultation Paper SEELLD January 2001

5. The authorisation of renewable energy facilities such as wind turbines and wave power machines in offshore locations are outwith the jurisdiction of the Planning Act. The authorisation of such developments is currently the subject of a Scottish Executive consultation paper which suggests that the authorisation of such proposals should come within the scope of Section 36 of the Electricity Act 1989 and the associated Electricity Works (Environmental Impact Assessment (Scotland) Regulations 2000.

6. Large-scale offshore wind farms are being developed off the Danish coast but to date there has been limited interest in UK waters. This is changing following the award of contracts by the Crown Estate for potential sites around the coast of Great Britain. One such site is in the Solway Firth between England and Scotland. Although the nature of much of Scotland’s coast has tended to create the view that further large scale developments here are unlikely, technological developments and the need to exploit this resource point to more consideration being given in the future to the scope for such developments (see paragraph 14 and Case Study 1). For these reasons this PAN does not cover further details of such offshore projects. Following the current review and further guidance from SE Energy Division will follow.

The Scottish Renewables Obligation (SRO)

7. The first Order (SRO 1) under the Scottish Renewables Obligation was established in 1994 to promote the development of renewable forms of electricity generation. There have been two further Orders, SRO 2 (1997) and SRO 3 (1999). The Orders were targeted at specific technologies.

Renewables Obligation (Scotland), the ROS

"The Renewables Obligation (Scotland)"

Scottish Executive Consultation Paper. July 2001

8. The Utilities Act 2000 gives the Scottish Ministers executively devolved powers to set a separate renewables obligation for Scotland, and to exclude particular technologies. The renewables target in Scotland will be implemented under the Renewables Obligation (Scotland) or ROS. The ROS will oblige all licensed electricity suppliers in Scotland to obtain renewables obligation certificates sufficient to cover a specified proportion of the electricity supplied to their customers in Scotland and will come into force in April 2002. Further guidance will be issued in due course.

Qualifying Renewables Technologies Under ROS

9. In contrast with the previous SRO arrangements, the Scottish Ministers will not direct which specific renewables projects at specific sites will be developed to meet the ROS target. Instead the market will, in general, take these decisions subject to obtaining permission in the normal way. Ministers will, however, be able to specify which technologies will not qualify for support under ROS. There has been debate about the use of waste in renewable energy power generation, particularly focused on the role of incineration and the future role of the existing hydro schemes. This is discussed further under the relevant technologies.

Renewable Energy Potential in Scotland

10. Scotland has significant renewable energy resources. The available wind resource could sustain a large contribution from onshore wind farms. Small hydro schemes will probably be developed and there is considerable potential in the refurbishment of existing hydro schemes. In addition, Scotland has a considerable medium term resource in the shape of forestry biomass and, in the longer term, in wave and tidal power. There currently may be an opportunity to develop a lead in wave energy and other marine power technology, including offshore wind, through indigenous marine energy expertise. The energy potential from marine power in Scotland, while not nearly as much as for wind, is quite significant on the north and west coasts and there could be an advantage in establishing a home market in the technology.

The Scottish Electricity Grid and Network Connections

"Embedded generation working group report" DTI Jan 2001

12. There is existing capacity to accommodate new generation in the central belt and southern Scotland but there are limitations in the north and west. A working group, chaired by energy regulator OFGEM, has reported on the many technical, regulatory and financial factors that inhibit the connection of small, decentralised generation plant (embedded generation, now referred to as "distributed generation") to electricity networks operated by the distribution network operators (DNOs).

13. In addition the Scottish Executive commissioned research on the limitations of the current distribution network and the likely costs involved in upgrading. The results of this study, the "Scottish Network Study 2001" has now been published and is available on the Scottish Executive Website at www.scotland.gov.uk

Research and Development

14. Renewables research and development is the responsibility of the Department of Trade and Industry (DTI). The Government has allocated £267 million over 2001-2004 to promote renewable technologies. This includes £89 million for capital grants for offshore wind, energy crops and small scale biomass from the DTI and the New Opportunities Fund; £55.5 million for an expanded DTI R&D programme; and a further £100 million that will be allocated after completion of a report on renewable energy by the Performance and Innovation Unit in the Cabinet Office. The Scottish Executive will encourage as many good Scottish projects as possible to compete for that funding and will review the possibility of direct support for longer-term renewables technologies.