The Scottish Government has published the country’s first Energy Strategy which it said will strengthen the development of local energy, empower and protect consumers, and support climate change efforts while tackling fuel poverty.
The strategy includes a range of actions, including a £20 million Energy Investment Fund, which will build on the success of the Renewable Energy Investment Fund, and a £60m Low Carbon Innovation Fund, to provide dedicated support for renewable and low carbon infrastructure over and above wider interventions to support innovation across the economy.
An open consultation was conducted at the beginning of the year which drew over 250 substantive responses. Those detailed responses, as well as feedback from the Scottish Energy Advisory Board and responses to further consultations on the onshore wind policy statement, local heat and energy efficiency strategies, regulation of district heating, and unconventional oil and gas, have helped shape, inform and influence the strategy.
The strategy’s six strategic priorities include:
- Promote consumer engagement and protect consumers from excessive costs
- Champion Scotland’s renewable energy potential, creating new jobs and supply chain opportunities
- Improve the energy efficiency of Scotland’s homes, buildings, industrial processes and manufacturing
- Continue to support investment and innovation across our oil and gas sector, including exploration, innovation, subsea engineering, decommissioning and carbon capture and storage
- Ensure homes and businesses can continue to depend on secure, resilient and flexible energy supplies
- Empower communities by supporting innovative local energy systems and networks
During a statement to the Scottish Parliament yesterday, business, energy and innovation minister, Paul Wheelhouse, also announced that the latest figures from the Energy Saving Trust show a 12% increase in the level of community and locally owned renewable capacity operating in Scotland, which now sits at more than 660MW.
Wide engagement and public consultation on a publicly owned energy company is planned for 2018. The aim is that this company will support economic development and contribute to tackling fuel poverty, as well as being run on a not-for-profit basis.
Mr Wheelhouse said: “Scotland has world class skills, expertise and knowledge, from the North Sea oil and gas industry to our academic institutions and smaller start-ups to our cutting edge low carbon technology.
“This strategy recognises and builds on our achievements to date and on Scotland’s capacity for innovation. It places consumers, and their interests, more firmly than ever at the heart of everything that we do.
“We are leading the way in promoting community and locally owned renewable energy – well ahead of the rest of the UK – as figures announced today demonstrate.
“This strategy will guide decisions of the Scottish Government over the coming decades. We want to make sure, within the scope of our devolved powers, good stewardship of Scotland’s energy sector – something we have called the UK government to step up to for years.”
Responding to the publication, Gina Hanrahan, acting head of policy at WWF Scotland, said: “It’s great to see the Scottish Government cement its ambitions to deliver half of our energy from renewable sources by 2030. In uncertain times for investment, it is a strong statement that Scotland is open for low-carbon business and plans to build on its fantastic progress on renewable electricity in the heat and transport sectors.
“A transformation in how we heat our homes and offices, how we travel to work and school, and how we power our industries will generate many social and economic benefits. Independent research for WWF Scotland shows that this is necessary to deliver climate change targets and can be delivered with existing technologies.
“To ensure a truly effective, joined-up strategy, more effort needs to be put into developing policy to reduce our demand for energy in the first place. The Scottish Government needs to enable people to get out of their cars, insulate their homes and improve the energy efficiency of their businesses. With growing demand for the Climate Change Bill to increase our ambition in line with the Paris Agreement, a clearer vision and bold, substantive policies will be needed more than ever. The final Climate Change Plan, due in February, should be the real test of whether this strategy is given teeth.”
Sam Ghibaldan, head of the Consumer Futures Unit (CFU) at Citizens Advice Scotland, stressed the importance of consumer engagement and protection as the first theme of the Scottish Government’s Energy Strategy.
He said: “As we journey to a low carbon future the energy market will be disrupted, and consumers’ interests should be put first as new structures and technologies are adopted.
“New systems must be easily understood by householders, and their rights must be clear. The CFU, as the independent energy consumer advocate, will ensure the consumer voice is heard during the development of energy efficiency and district heating policy, and in other areas addressed by the energy strategy.
“As the energy system of the future evolves it is critical that consumers are considered, empowered and protected if change is going to succeed.”
Scottish Renewables said the new renewable energy target contained the strategy shows “huge ambition”.
The goal, suggested by the industry body in January 2016, will see half of all energy – for heat, transport and electricity – coming from renewable sources by 2030.
Claire Mack, chief executive of Scottish Renewables, added: “Scotland’s first Energy Strategy heralds a new era for the energy system used by us all, and provides a roadmap for others to follow.
“For the first time, the Scottish Government has set out a holistic plan for how we produce and use energy, breaking down the barriers between electricity, heat and transport.
“The huge ambition of the new target is to be commended. The Strategy creates a framework for us as an industry, Scotland’s policymakers and the public to think in different ways about energy supply and demand.
“It should also provide much-needed impetus to tackle issues like the decarbonisation of our heat supply, levels of fuel poverty and the challenges presented by the roll-out of electric vehicles.
“Of particular note is the 50% renewable energy target contained in the Strategy, which sends a strong signal to industry that renewables should take its place the heart of our economy.
“Previous targets laid the foundation for the rapid growth of Scotland’s renewable energy industry – an industry which already employs 26,000 people, invests hundreds of millions of pounds every year and displaces the equivalent carbon emissions of our entire transport sector.
“This new target has the potential to do the same not just for the continued growth of our renewable electricity sector but also for heat and transport, where action to decarbonise is urgently needed.”