Wind energy in the wider context of Scottish Renewables Policy

1. Wind energy in the wider context of Scottish Renewables Policy Sue Kearns Head of Renewables Strategy and Onshore Renewables

2. Overview • Scottish Policy Objectives & Targets • Support & Progress to date • Renewable Energy Framework • Renewables Action Plan

3. What are we seeking to achieve? • Scotland as green energy capital of Europe • Significant exporter of electricity • At least 16,000 green jobs

4. How much renewable resource do we have? • Enough renewable energy resource to cover up to 10 times peak winter electricity demand in Scotland (60GW) Includes: • 25% of Europe’s wave energy • 10% of Europe’s tidal energy • More offshore wind commercial development potential than previously thought • 650MW viable small scale hydro potential

5. Link to Scottish Govt Purpose • Wealthier: Economic benefit • Greener: Climate change mitigation • Stronger: Security of energy supply

6. Key Targets • EU: 20% renewable energy by 2020 • UK: 15% • UK/Scotland: GHG emissions reduction 80% by 2050 • Scotland: 20% renewable energy by 2020 • Scotland: 50% renewable electricity by 2020 (8GW) • Scotland: 11% renewable heat by 2020 • Scotland: 10% green transport fuel by 2020

7. Support to date – consents and grants • Existing renewable generation in Scotland (3GW) is mainly onshore wind (1.5GW) and hydro (1.4GW) • Past issues with consenting process – we have streamlined the system and aim for 9 month turnaround • Plus have encouraged diversity of supply through supporting new sectors: • Wave and Tidal • Biomass • Hydrogen/Fuel Cells

8. 3GW installed renewables capacity in Scotland Under current Administration (from May 2007): 19 renewables Consents (1.5GW) Includes largest windfarm in Europe (Clyde) Windfarms consented under s36 since May 07: Harestanes - 213MW Mid Hill - 75MW Griffin – 204MW Gordonbush – 87.5MW Carriag Gheal – 60MW Mark Hill – 84MW Arecleoch – 180MW Clyde – 548MW Crystal Rig 11a – 27MW Lochluichart – 51MW Progress to date: s36 Consents

9. Renewable Energy Framework, 2008 • Consultation end of 2008 • Set out framework for development to help meet EU 2020 target • Aims to meet 20% energy demand in Scotland from renewables by 2020 • Developing Action Plan 2009

10. Renewable Energy Framework:Heat • Tenfold increase in renewable heat to 11% by 2020: huge task • Scottish Renewable Heat Action Plan (RHAP) to stimulate diverse market (inc. further round of biomass support scheme – businesses and district heating) Post REF: • inclusion of RHAP in Climate Change Bill – to keep in policy focus • CARE Scheme – focus on heat projects off gas grid plus support for electricity to heat projects in remote areas • Air source heat pumps to be offered off gas grid in Energy Assistance package • But main stimulus will come through Renewable Heat Incentive – UK Govt. - with cost borne by consumers. • Huge infrastructure questions around heat delivery + district heating • Need for policy focus on waste heat from industrial processes

11. Renewable Energy Framework:Transport • Tenfold increase in renewable fuel used for transport to 10% by 2020 • Progress through a range of cost-effective solutions • Scottish Govt will seek a better understanding of 2nd generation biofuels and of the role of alternative technologies – including hydrogencars

12. Renewable Energy Framework:Electricity • Meet and try to exceed 50% 2020 target through balanced mix of technologies • Continued working with European partners to look at offshore grids • Develop route map for marine energy • Renewables Obligation (Scotland) banding • Aim to maximise economic benefit of renewables

13. Electricity: onshore wind • Currently 1.5 GW (about half UK total) • REF estimate for 2020: 5-7 GW • Main potential inhibitors: • Grid capacity (Decision on Beauly-Denny upgrade expected this year) • Consents/planning issues • Seeking deployment solutions: Western Isles

14. Underway: Develop Electronic Case Tracking System Review Website Improve Guidance Improve Scoping Advice Developer Checklist for applications Industry engagement through FREDS Contribute to GIS project development National database for all energy projects 9 month determination ambition for new applications Being considered: Streamlining the consent process Legislation issues Brokering strategic solutions Reviewing Post Consent involvement Consents improvements

15. Brokering Solutions • Western Isles offers good case study • Huge resource potential with significant environmental constraints • Rejection of Lewis windfarm in 2008 • Scottish Govt has led study to identify opportunities in harmony with environmental designations • Aim to present prospectus for investment to developers

16. Electricity: offshore wind • Currently: Robin Rigg (>200MW) in construction; plus Talisman deep water demonstrator (10MW) • REF estimate: 1-4 GW mainly deep water • Post REF – Crown Estate award of site exclusivity in STW to about 6 GW of proposals – shows commercial interest (ROC banding incentive plus devt. of technology have made STW commercially attractive) • SEA crucial

17. Electricity: Marine Energy • Currently: 0.5MW wave (Limpet) • Consented: Siadar array (4MW); Pelamis array (3MW) • REF estimate: 0.5-1GW by 2020 • Heavy policy focus + higher support under RO(S) • £10M Saltire Prize • Most of volume from wave and tidal is expected post 2020.

18. Electricity: hydro • Currently: 1.4GW • REF estimate: 2.1-2.4GW • Remaining potential mainly small scale developments

19. Electricity: biomass • Currently: 80MW • REF estimate: 200-400MW • Public sector support will be aimed at CHP and heat only use • Need to coordinate policy objectives on renewable energy from waste, and AD.

20. Electricity: for heat and transport • Opportunities to use green electricity to decarbonise heat and transport sectors • Implications for generation and grid need to be determined

21. Renewable Energy Framework: Communities • Tripled funding for community renewables • Issued community renewables toolkit • SG Community and Renewable Energy Scheme (CARES) – delivered by CES • CARES – not just grants: support network throughout Scotland, plus bulk procurement of turbines

22. Priorities and next steps Challenge of current economic context and need to assist economic recovery Route Maps on: - marine energy - heat • supply chain • other sectors (onshore wind, offshore wind, hydro, hydrogen/fuel cells, biomass) Interim Renewables Action Plan by end June 2009.

23. Renewables Action Plan:workstreams • Achieving buy-in: engagement • Making economic case: research & analysis • Problem solving: brokering/ solving deployment issues • Mapping detailed “hardware” needs: route maps (all sectors); heat; infrastructure (heat & transport, as well as grid) • Meeting people needs: skills; community benefits; schools • Options for investment: (including review of support to date) • Next steps: measurement and promotion

24. Conclusion • Scottish Govt setting ambitious renewables targets for 2020 and seeking to encourage a diverse mix of supply • Development of wind energy market – largely commercial, but community level projects being directly supported • Onshore wind: Consents, planning and grid issues being tackled • Offshore wind: SEA and liaison with Crown Estate to exploit potential • Wind energy has a huge role to play in helping Scotland achieve its renewable energy ambitions

25. Thankssue.kearns@scotland.gsi.gov.uk