A round-up of the work SR is doing on your behalf Dear member, Welcome to the first Monthly Briefing of 2023. We have another exciting year of industry-leading events lined up to provide you, our members, with the opportunity to network, share information and grow your business while learning from colleagues across the industry. The Offshore Wind Conference 2023 will kickstart another year of dedication to delivering our offshore wind goals. Taking place on January 25 & 26 in Glasgow, it will focus in particular on bringing together a diverse set of voices and on exploring the big challenges facing our growing offshore sector. In February, we’ll get together at our Planning Conference to map out the policy changes required, examine the business opportunities - as well as the obstacles - which lie ahead and consider the system changes needed to enable deployment at the pace and scale required to reach net-zero by 2045. Our Net-Zero Energy Conference & Dinner will return to Edinburgh in March for a unique opportunity to hear from experts across our energy system, as well as the place to discuss the issues that matter with the businesses, investors, decision-makers and stakeholders making it happen. You can find out more about our upcoming events and book your tickets via our website. Rachel Dickie Scottish Renewables' skills survey Scottish Renewables is working to highlight the efforts being made by our industry to train the people and develop the skills we need to meet net-zero. By completing our short skills survey you’ll help us develop a picture of how the renewable energy industry is committed to filling our skills gaps and developing the green workforce of the future. The deadline for submissions is 5pm on Tuesday, January 17. Media reaction: Scottish Budget 2023-24 Deputy First Minister John Swinney presented the Scottish Budget 2023-24 on December 15. Responding, Claire Mack said: "The Scottish Government’s continued commitment to the achievement of net-zero, as signalled in the Scottish Budget, is to be applauded, as are commitments to increase spending on renewable heat and offshore wind, as well as positive changes to the way renewable energy generation is assessed in the business rates system.” Blog: Buses, bicycles and breathing better air Could electric buses make Glasgow city centre more palatable for cyclists? This blog by Nick Sharpe, Director of Communications and Strategy, looks at the benefits of ditching diesel. He writes: "Glasgow’s streets are a grid, so the city’s blessed with lots of traffic lights. Get behind a diesel bus at those lights, particularly going up a hill like Hope Street, and when they turn green everyone behind, from pedestrians on the pavements to me in the carriageway on my folding bike, are engulfed in a cloud of blue smoke.” News release: Renewables generation up 55% year-on-year New figures released by The Scottish Government reveal that renewable energy generation between July and September 2022 was up 55.3% on the same period in 2021. Renewable electricity capacity also increased over the past year to 13.6GW in September 2022, up 1.4GW since September 2021. Responding, Nick Sharpe said: “Renewable energy projects like wind and solar farms, hydropower and tidal energy are contributing more and more to Scotland’s economy as well cutting energy costs for consumers and helping meet our net-zero target. As we develop more projects, on and offshore, those contributions will only increase.” Media reaction: Climate Change Committee progress report 2022 The Climate Change Committee recently published its Progress Report for 2022 and its first five-yearly review of Scottish Emissions Targets. Responding, Morag Watson said: “The Climate Change Committee is right to highlight the need to accelerate our transition to net-zero and for The Scottish Government to put in place delivery plans to do that.” Blog: An inspirational year of outstanding contributors Last year’s Scottish Green Energy Awards saw the culmination of a year’s drive to encourage more women to nominate for one of the top accolades: the Outstanding Contribution Award. Working with Ørsted, we launched the Outstanding Contributors Campaign to showcase women who’re putting renewable energy firmly on the map. This blog takes a look back at the campaign and the inspirational people featured throughout the year. Net-Zero Energy Conference & Dinner Scottish Renewables’ Net-Zero Energy Conference will return to Edinburgh on March 21 & 22 and bring together leading experts and decision makers from across our energy system. Join us as we map out the policy changes required, examine the business opportunities - as well as the obstacles - which lie ahead and consider the system changes needed to enable deployment at the pace and scale required to achieve a secure, affordable and low-carbon energy system. National Planning Framework 4 Scottish Ministers have now approved the National Planning Framework 4 (NPF4). A "remarkable and major step forward" to achieving a net-zero-driven planning system, NPF4 is one of the most supportive planning regimes for renewables in Europe and of great significance for all forms of renewable energy in Scotland:
Scottish Renewables, in collaboration with Brodies, has prepared a Briefing: NPF4 and Renewable Energy in Scotland. With thanks to Brodies, the analysis focuses on how the new policy will be implemented, positives and concerns rather than dwelling on genesis, evolution and changes SR successfully advocated for. Flow Country Partnership response: draft boundary of the proposed Flow Country World Heritage Site The Flow Country Partnership has released a summary report which includes responses to the two consultations on the proposed Flow Country World Heritage Site boundary and associated draft management plan. A revised boundary has also been released. Read SR responses: proposed Flow Country WHS and boundary (July 26, 2022) and draft management plan (September 5, 2022). Get in touch with Mark if you would like to discuss this. Scottish Government publishes biodiversity strategy The Scottish Government has published its draft Scottish Biodiversity Strategy which sets out the ambition for Scotland to be Nature Positive by 2030 and to have restored and regenerated biodiversity across the country by 2045. Given the intimate inter-connectedness of renewable energy generation, climate change and biodiversity loss, our consultation response highlighted the failure of the draft strategy and vision to communicate the urgency required in relation to practical actions that will be effective in arresting biodiversity loss. Read Scottish Renewables' response: Scottish Biodiversity Strategy consultation. Media reaction: Scottish Government publishes final Onshore Wind Policy Statement In summer 2022 Scottish Renewables asked The Scottish Government to “Create an Onshore Wind Sector Deal with industry which will deliver the 12GW of additional onshore wind Scotland needs by 2030 to achieve net-zero". In response The Scottish Government committed in the Programme for Government 2022/2023 to publishing the Final Onshore Wind Policy Statement (OnWPS) which was released on December 21. Responding, Mark Richardson said: “The renewable energy industry welcomes The Scottish Government’s support for onshore wind and the publication of its final Onshore Wind Policy Statement, which makes Scotland the best place in the UK to develop onshore wind projects.” Thank you to SR members for your continued engagement throughout the process and your invaluable help to develop our response to the consultation (January 28, 2022) on the draft OnWPS and the Onshore Wind Vision Statement for Scotland (October 28, 2022). Onshore Wind Sector Deal Scottish Renewables is leading a conversation between the renewable energy industry and The Scottish Government in relation to the establishment of a Scottish Onshore Wind Sector Deal. This Sector Deal will seek to capture the needs and ambitions of The Scottish Government and the Scottish wind industry in relation to delivering a minimum installed capacity target of 20GW of onshore wind in Scotland by 2030. SR has commissioned BVG Associates to support industry in creating a Sector Deal, due to be finalised this year. The first stage of developing the Sector Deal was establishing with members and stakeholders the underpinning vision that drives it. The Vision Statement was published on December 21, 2022, as part of the Onshore Wind Policy Statement. The OnWPS also sets out the general aims and principles of the Sector Deal. SR and BVGA are developing a scoping document that presents the outline content of the Sector Deal in sufficient detail to enable members and all key stakeholders to engage in full and constructive discussions on all the relevant points and principles that will make up the content of the full Sector Deal. We will be welcoming SR member feedback on the draft scope in due course. National Marine Plan 2Marine Scotland has begun the process of updating Scotland’s Marine Plan to ensure it fully incorporates the need to address the climate and nature crises. The National Marine Plan 2: engagement strategy for this is now available. Between autumn 2022 and spring 2023, the vision and objectives will be developed and the Strategic Environment Assessment scoped. From summer 2023 policy development will begin, with the plan going out for consultation in spring 2024. SR has coordinated feedback on the engagement strategy through the Offshore Wind Enabling Group and has sent a letter to Marine Scotland outlining some concerns regarding the timescales of NMP2. For more information, please contact Amy. Sectoral Marine Plan Iterative Plan Review In December, Amy Keast and Hettie Pike attended the first Sectoral Marine Plan Iterative Plan Review and Innovation and Targeted Oil and Gas decarbonisation joint steering group, hosted by The Scottish Government. Key themes discussed included IPR considerations, compatibility assessment analysis, feedback on INTOG assessment and methodology feedback and stakeholder mapping. For more information, please get in touch with Amy. Sectoral Marine Plan: Roadmap of Actions On December 8, Marine Scotland published the roadmap of actions of the Sectoral Marine Plan (SMP) required to improve their understanding of the potential implications of ScotWind sites on seabirds. The overarching aim of the work is to develop an understanding of the research required for addressing the evidence gaps identified in the SMP and its Habitats Regulations Appraisal. This is in order to provide the evidence base to reassess potential impacts to seabird populations within sites under the highest levels of ornithological constraint, as part of the iterative plan review. Highly Protected Marine Areas The Scottish Government published its consultation on Highly Protected Marine Areas: policy framework on December, 12. This policy document set out by The Scottish Government describes the pursuit of developing Highly Protected Marine Areas (HPMAs) to further the protection and restoration of nature beyond that of Marine Protected Areas. The Scottish Government has committed to designate 10% of seas as HPMAs by 2026 as part of the Bute House Agreement, with the target of reaching 30% varying levels of protection of Scottish seas by 2030. Please contact Hettie if you would like to provide any initial comments. Scottish Renewables’ Offshore Wind Conference 2023 Scottish Renewables’ Offshore Wind Conference 2023, headline-sponsored by SSE Renewables, will take place on January 25 & 26 at the SEC in Glasgow. This must-attend event will bring together experts from across the offshore wind industry to explore how Scotland can deliver successful projects with positive economic and environmental impacts. From thought leadership to practical supply chain advice, the Offshore Wind Conference 2023 will set the agenda for the year ahead. Media reaction: UK Government unveils details of next Contracts for Difference auction On December 14 the UK Government published the core parameters and draft allocation framework for Allocation Round 5 of the Contracts for Difference scheme. These documents provided information on the pot structure, delivery years and administrative strike prices, as well as the requirements which eligible bidders will have to satisfy. Responding, Claire Mack said: “Deployment of more renewables, and particularly offshore wind, is vital to reduce consumer bills in the longer term, grow our energy security and meet our climate targets, but the administrative strike prices announced today by the UK Government will make that increased deployment very challenging." Blog: Warning that levy on renewables could increase bills "It may seem right now as if there is no easy answer to the energy affordability crisis we all face. But if, as we all know, the long-term solution to this problem is cheap, clean renewable energy capacity, then the UK Government should be doing everything in its power to protect our country’s reputation as one of the leading destinations in the world for renewable energy investment." This blog, which first appeared in the Herald print edition on December 22, considers the impact the hastily introduced Electricity Generator Levy could have on investment into renewable energy developments across Scotland and the UK. Electricity Generator Levy His Majesty’s Treasury has published further details on the Electricity Generator Levy including draft legislation and a supplementary Technical Note. SR has been engaging with the Treasury to highlight member concerns including writing a letter setting out three key asks: to index thresholds to inflation, to exclude the CfD ‘merchant nose’ and to include an investment allowance equivalent to that of the Energy Profits Levy. The new documentation confirms that indexation has been adopted, but that the merchant nose will not be exempt and there will be no investment allowance. HMT has indicated that it does not intend to revisit its decision, but SR is evaluating what scope there will be to continue to influence the policy. Contracts for Difference Consultations BEIS has published two consultations seeking views on changes to the CfD. One consultation is on changes to the AR5 contract and the other sets out proposed changes to future rounds from AR6 onwards. Please contact Andrew if you would like to share comments on either consultation. New policy team member We are delighted to welcome Stephen McKellar as our new Senior Policy Manager – Grid and Systems. Stephen joins us from The Scottish Government’s grid team where he worked for the previous four years. You can get in touch with Stephen at SMcKellar@scottishrenewables.com. OTNR: Revised Minded-to Decision and further consultation on Pathway to 2030 In July 2022, Scottish Renewables responded to a consultation on the Pathway to 2030 workstream of the OTNR, and in December Ofgem published its Revised Minded-to Decision and further consultation on Pathway to 2030 SR will be responding to this consultation, and we would welcome views from members. Media reaction: Decision on accelerating onshore electricity transmission investment Ofgem recently introduced a new Accelerated Strategic Transmission Investment (ASTI) framework. The document sets out the initial list of ASTI projects, the decisions on exempting strategic projects from competition, the new process for assessing and funding ASTI projects and the range of measures being introduced to protect consumers against additional risks that changing the process brings. Responding, Claire Mack said: “We welcome today’s publication of the ASTI Framework which is a crucial landmark for the renewable energy industry and support these changes to the current regulatory framework, which will help to accelerate delivery of large projects of which network build is a critical component.” Energy Code Governance Reform Ofgem has published a call for input regarding the Energy Code Reform. Ofgem is seeking initial views on potential code consolidation as part of the approach to implementing the reforms. It is also seeking views on the content of the code manager licence conditions, and the role of stakeholders in the new governance framework. We would welcome views from members on this call for input. Please share any comments with Stephen. Central Design Group - Holistic Network Design Scottish Renewables attended two CDG meetings of the Holistic Network Design (HND) on December 6 and 15. The topics of discussion were confidential, but NGESO is keeping developers updated through different stakeholder engagement sessions. If you have any concerns about the HND that you would like us to raise at these meetings, please get in touch. Grid & Network Working Group meeting Scottish Renewables hosted the quarterly meeting of our Grid and Networks Working Group. The topics of discussion included Transmission Network Use of System (TNUoS), Locational Marginal Pricing (LMP), the Offshore Transmission Network Review (OTNR) and the Holistic Network Design (HND). Offshore TNUoS Group Meeting SR and RUK have set up a group to discuss transmission charges issues for offshore wind developers. The first meeting was held on December 7 and the second meeting was held on January 5. If you are interested in this area of work, please contact Stephen. Media cutting: Have we finally reached a tipping point for island electricity grid connections? Angeles Sandoval, former Policy Manager for Grid at Scottish Renewables, was interviewed by the Press & Journal for a feature on how low capacity in island electricity grid connections has held back the north’s renewable energy industry. The article first featured in the Press and Journal’s monthly magazine ‘The Business’ on December 30 and is now available online. Scottish Government grants for heat pumps The Scottish Government has changed its Home Energy Scotland scheme for installing low-carbon heat solutions in homes from loans to grants, thereby helping to mitigate the upfront cost element of heat pumps. Homeowners can now apply for a standalone grant of £7,500 from the Home Energy Scotland Scheme to install heat pumps. Previously, applicants were required to sign up for a loan before they qualified for this funding, but can now access the money directly. The enhanced measures will also include an extra £1,500 to homeowners in rural areas, in line with a commitment made as part of the Bute House Agreement. A standalone grant of £7,500 for energy efficiency improvements to homes will also be made available. Heat networks - thermal energy target 2035 consultation and zoning consultation. As set out in the Heat Networks Delivery Plan, The Scottish Government is intent on setting an additional heat networks target. Current targets are 2.6TWh by 2027 and 6TWh by 2030. The Heat networks - thermal energy target 2035 consultation discusses setting a 2035 target as there is a legal requirement on Scottish Ministers to do so under the 2021 Heat Networks (Scotland) Act. The Heat Networks Regulations: Building Assessment Reports and Zoning consultation will be a limited six-week consultation, targeted at specific sector stakeholders rather than the wider public, and will run from January 16 to February 27. SR will create one short-life Policy Advisory Group drawn from Heat Networks Policy Working Group members to discuss both consultations, but if there are other members who would like to contribute to this PAG then please email Helen. The time frame for this group meeting will likely be the end of January and will take place via a Teams meeting. Environmental Audit Committee inquiry: onshore solar energy This inquiry on onshore solar energy is the latest in a series of inquiries on the technological innovations to address climate change that the EAC has been holding. We submitted a response discussing some of the barriers at the UK level to increased solar deployment in Scotland. Please get in touch with Helen for more information. Solar Policy Working Group The Solar Policy Working Group will be holding its first meeting early January. We’ll update members soon on what is discussed. There are still a few places available in this group so if you are interested, please get in touch with Helen. Hydrogen Forum meeting We held a Hydrogen Forum meeting on December 14. Some of the issues discussed included support for SMEs in terms of scaling hydrogen projects and the need for the SR Policy Position Statement on Green Hydrogen to be updated. We will discuss these issues at the next Green Hydrogen Policy Working Group meeting in January. If you would like more information, please get in touch with Helen. Improving boiler standards and efficiency BEIS published its Improving boiler standards and efficiency consultation on December 13. It discusses domestic gas boiler efficiency, hydrogen-ready boilers and hybrid heating systems. We will be putting together a short-life Policy Advisory Group drawn from both low-carbon heat and hydrogen members as it crosses both sectors. Please send initial comments to Helen by mid-January. Scottish Government’s Hydrogen Action Plan published The Scottish Government’s final Hydrogen Action Plan was published on December 14. There is more of an emphasis on export and building up trade activities in Scotland, but generally, it is very similar to the draft action plan. SR has regular meetings with The Scottish Government's Hydrogen Team, so if you have any issues, please get in touch with Helen who will bring them to the attention of the team and help to find solutions. New Supply Chain Officer A new year, a new team member. This January, Scottish Renewables is expanding our Energy Transition and Supply Chain services with the appointment of Sophie Pacitti into the newly-created Supply Chain Officer - Stakeholder Engagement role. Sophie will work closely with the Head of Energy Transition and Supply Chain to engage with new and existing renewable energy suppliers and support businesses who have ambitions to work in areas including onshore and offshore wind, low-carbon heat and green hydrogen. Future Energy Skills Roundtable In December Emma Harrick attended a Future Energy Skills Roundtable called by Centrica and the GMB. The roundtable was gathered to provide insight into the the Future Energy Skills Programme which aims to support the UK in meeting the twin challenges of the transition to a low-carbon future and the urgent need for greater energy resilience. Key themes discussed at the session were creating careers for the future as we strengthen our energy independence and ensuring a just transition for workers in the high-carbon economy. Peel Ports Visit Emma Harrick and Mark Richardson recently visited Peel Ports at King George V Dock in Glasgow. Thanks to Jim McSporran, Fraser Houston and Colin Bankier for hosting and providing a tour of the site in one of the group's electric vans. It was great to see the port which is currently a hive of onshore wind activity and to chat with the team about their growing ambitions across the renewable energy sector. Supply Chain Impact Statement 2022 Scottish Renewables has been busy gathering supply chain case studies from across the sector for the next edition of our Supply Chain Impact Statement publication. Submissions are now closed and we have received more than 45 entries, all which highlight the depth and breadth of the positive impact renewable energy projects have on Scottish communities. Look out for further updates as the document develops. If you are interested in showcasing your organisation in the document there are advertising opportunities available. Please contact Sophie for more information. |