Renewable Electricity Generation in Scotland

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1 Renewable Electricity Generation in Scotland Renewable electricity output 2020 target of 100% (blue line marks progress) Major success - 400% increase in renewable electricity output over 10 years. Scotland almost certain to meet interim target of 50% by % target is challenging. 8.3 Gigawatts of capacity consented and awaiting construction. Energy Market reform in the UK has changed investment context Scotland Renewables Status Current installed capacity (Sept 2014) Capacity needed for SG 100% renewables target 7.2 GW GW

2 The Challenges of Peripherality Planned island grid investment: Scotland s island groups have huge untapped renewable energy potential (wind, wave and tidal), but are not currently connected to the National Grid Grid designed to transmit energy the other way - from population centres outwards Proposed island links are expensive Policy, market and regulatory barriers have prevented delivery of island links Charging methodology means higher charges for Scottish generation relative to rest of GB (further from demand) Significant recent progress: Inter-governmental Delivery Forum Process outlined to deliver 2020/21 Needs state aid amendment allowing support for Remote Island Wind generation

3 Expertise in Harsh Offshore Environments Leading R&D in offshore renewables: European Marine Energy Centre (EMEC) is the world s only accredited testing facility for wave and tidal energy converters Offshore Renewable Energy Catapult based in Glasgow FloWave test tank in Edinburgh SuperGen UK Centre for Marine Energy Research The establishment of Wave Energy Scotland in 2015 Expertise: - International sales from Scotland s oil and gas supply chain grew to 11.2 billion in 2014, up 12% on the previous year. International activity now half of total oil and gas supply chain sales. - UK has deployed largest offshore wind generating capacity in Europe. Scotland/Basque region pilot underway in the development and production of robust, high integrity equipment and components for applications related to marine renewables and energy and resource extraction in the most demanding marine environments.

4 Local Heat and Energy Efficiency Ambition: drive economic growth and competitiveness, and support efforts to tackle inequality, by enabling every household, business, public sector and third sector organisation to use less energy, reduce their fuel costs and cut their carbon emissions. Heat vision: - a commercially viable, diverse industry delivering resource efficiency, low carbon and renewable heat to serve Scotland's heat needs - a largely decarbonised heat system by 2050, with significant progress by 2030: Clear ambition for district heating Programmes supporting uptake of Renewable Heat Incentive Heat map: Energy Efficiency: Scotland s energy consumption in 2012 was 11.8% lower than Established 76 million Low Carbon Infrastructure Transition Programme Scotland-wide, cross-sector project development unit, supporting acceleration of low carbon infrastructure development. Created the Resource Efficient Scotland advice and support programme, supporting over 33,000 organisations to realise over 49 million and 910 GWh of lifetime energy savings

5 Carbon Capture and Storage at Peterhead First step: The world s first full-scale gas carbon capture and storage project - The Peterhead CCS Project. This collaboration between Shell and SSE aims to capture one million tonnes of CO 2 emissions every year and transport it by pipeline 100km offshore for long-term storage deep (2.5km) under the North Sea via an existing oil pipeline. Scotland ideally placed to realise CCS on a commercial scale: North Sea is the largest CO2 storage resource in Europe Strategic ambition: Peterhead is one of two CCS demonstration projects in UK Government s 1bn CCS Commercialisation Competition, alongside White Rose in Yorkshire Also supporting Summit Power s Caledonia Clean Energy Project, a 570 MW CCS coal-gasification power station at Grangemouth Big steps towards building a critical mass which would allow: Major contribution to future energy decarbonisation Enhanced Oil Recovery, which offers a major new commercial opportunity for the UK Oil and Gas Industry Existing oil & gas capabilities, ready supply chain and expertise, existing pipeline and platform infrastructure

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