Select Committee · Scottish Affairs Committee

Renewable energy in Scotland

Status: Closed Opened: 19 Mar 2021 Closed: 8 Feb 2022 6 recommendations 5 conclusions 1 report

We have launched an inquiry into renewable energy in Scotland just months before the world descends on Glasgow for November’s COP26 UN Climate Conference. This inquiry is likely to examine: how ‘net-zero’ targets can be met by development of renewable energy in Scotland; the technologies that would best serve Scotland and how challenges in their …

Reports

1 report
Title HC No. Published Items Response
Fourth Report - Renewable energy in Scotland HC 51 17 Sep 2021 11 Responded

Recommendations & Conclusions

11 items
1 Conclusion Fourth Report - Renewable energy in Sco…

The potential scale of renewable energy in Scotland is huge.

The potential scale of renewable energy in Scotland is huge. The abundance of natural resources can benefit individuals, organisations, and businesses across the UK. We welcome the targets set by the UK Government for net zero and look forward to seeing how the overarching net zero strategy will impact the …

Government response. The UK Government is working closely with partners in the devolved administrations to achieve our climate goals. The Government’s net zero target covers the whole UK, and all four parts of the UK have an integral role to play in …
Scotland Office
2 Recommendation Fourth Report - Renewable energy in Sco…

The grid is critical for renewable energy to reach consumers.

The grid is critical for renewable energy to reach consumers. Urgent investment is needed in the grid to ensure that net zero targets are met. The grid needs to be reinforced and expanded to ensure that renewable energy generated in Scotland can connect to the grid and benefit the rest …

Government response. Government recognises the need for increased capacity on the grid to support our net zero ambitions. While enabling increased flexibility and storage can address this to an extent, we are acutely aware of the need for network reinforcement to enable …
Scotland Office
3 Conclusion Fourth Report - Renewable energy in Sco…

The evidence we have heard has highlighted issues around the volatility of transmission charges.

The evidence we have heard has highlighted issues around the volatility of transmission charges. The short-term volatility of transmission charges is a barrier to the development of renewable energy as it affects confidence in investment and the future cost of a project.

Government response. The Government shares the Committee’s view on the importance of transmission charging arrangements to the delivery of renewable energy projects and achievement of net zero targets. By law, transmission charging is a matter for Ofgem as the independent regulator. On …
Scotland Office
4 Conclusion Fourth Report - Renewable energy in Sco…

Locational transmission charges weigh more heavily on developers in Scotland when projects in other areas...

Locational transmission charges weigh more heavily on developers in Scotland when projects in other areas of the UK, like Wales, are paid to connect to the grid. The financial burden of transmission charges and grid investment needs to be justly shared across the UK and not fall heavily, and unjustly, …

Government response. The Government shares the Committee’s view on the importance of transmission charging arrangements to the delivery of renewable energy projects and achievement of net zero targets. By law, transmission charging is a matter for Ofgem as the independent regulator. On …
Scotland Office
5 Recommendation Fourth Report - Renewable energy in Sco…

We recommend that the UK Government specifies that, as part of its internal review, Ofgem...

We recommend that the UK Government specifies that, as part of its internal review, Ofgem must consider the financial burden of transmission charges in Scotland. Ofgem should consider the long-term impacts on net zero targets and aim for a way to ensure renewable energy projects have the chance to flourish …

Government response. The Government shares the Committee’s view on the importance of transmission charging arrangements to the delivery of renewable energy projects and achievement of net zero targets. By law, transmission charging is a matter for Ofgem as the independent regulator. On …
Scotland Office
6 Recommendation Fourth Report - Renewable energy in Sco…

Ofgem is considering net zero targets in their planning.

Ofgem is considering net zero targets in their planning. However, we are convinced by significant evidence to suggest that more emphasis should be put on net zero and this should be made explicit and formalised within Ofgem’s remit. We recommend that the UK Government amend Ofgem’s statutory duties to consider …

Government response. Ofgem’s statutory duty to protect consumers’ interests includes their interests in the reduction of emissions of targeted greenhouse gases, which means the updated Climate Change Act target of 100%. Government and Ofgem are aligned on the interpretation of the primary …
Scotland Office
7 Recommendation Fourth Report - Renewable energy in Sco…

Contracts for Difference (CfD) has been useful in driving down the cost of offshore wind...

Contracts for Difference (CfD) has been useful in driving down the cost of offshore wind and provides certainty to developers of renewable technology, but more could be done to improve the CfD system. By focusing on net zero goals the CfD could be realigned to prioritise best value, not just …

Government response. The Contracts for Difference scheme has been hugely successful in supporting investment in new capacity while seeing the costs of some renewable energy technologies decrease dramatically. We have recently announced the details of the next allocation round, due to be …
Scotland Office
8 Recommendation Fourth Report - Renewable energy in Sco…

The UK is at the forefront of tidal renewable energy technology, but the UK Government...

The UK is at the forefront of tidal renewable energy technology, but the UK Government must invest more in this sector to ensure that the UK retains its world leading position. A laissez-faire approach risks the UK being left behind again, as happened when Denmark eclipsed the UK in its …

Government response. Tidal stream generation could also have an important role in the long-term decarbonisation of the UK, but it will have to reduce its costs to compete with other low-carbon renewable technologies. However, tidal stream is an eligible technology for the …
Scotland Office
9 Conclusion Fourth Report - Renewable energy in Sco…

The Scottish Government suggested in analysis that 130,000 green jobs could have been created by...

The Scottish Government suggested in analysis that 130,000 green jobs could have been created by 2020, we are disappointed that the evidence we received from Unite the Union stated that only 6% of this was reached. Funding for a green recovery from the UK and Scottish Governments is welcome and …

Government response. The UK Government is working closely with partners in the devolved administrations to achieve our climate goals. The Government’s net zero target covers the whole UK, and all four parts of the UK have an integral role to play in …
Scotland Office
10 Recommendation Fourth Report - Renewable energy in Sco…

We recommend that the Scottish Government progress their Green Jobs Fund more rapidly and the...

We recommend that the Scottish Government progress their Green Jobs Fund more rapidly and the UK Government should use part of the £12 billion outlined in the Ten Point Plan to invest in renewable energy in Scotland. This investment should focus on the pipeline of energy projects in Scotland including …

Government response. The UK Government is working closely with partners in the devolved administrations to achieve our climate goals. The Government’s net zero target covers the whole UK, and all four parts of the UK have an integral role to play in …
Scotland Office
11 Conclusion Fourth Report - Renewable energy in Sco…

Due to the wide subject of renewable energy, we were not able to focus on...

Due to the wide subject of renewable energy, we were not able to focus on all issues that have been raised. Green hydrogen and Carbon Capture Utilisation and Storage 24 Renewable energy in Scotland (CCUS) need dedicated time to see how the technologies can help grow jobs in renewable energy …

Scotland Office

Oral evidence sessions

4 sessions
Date Witnesses
12 Jul 2021 John Waldron · Department for Business, Energy & Industrial Strategy, Rt Hon Anne-Marie Trevelyan · Department for Business, Energy & Industrial Strategy View ↗
5 Jul 2021 Bob MacGregor · Unite the Union, Dave Moxham · Scottish Trades Union Congress (STUC) View ↗
28 Jun 2021 Christopher Milne · Orbital Marine Power, Dr Gareth Davies · Aquatera, Neil Kermode · European Marine Energy Centre Ltd (EMEC), Steven Bruce · Orkney Islands Council View ↗
27 May 2021 Neil Douglas · BVG Associates, Professor Karen Turner · University of Strathclyde, Professor Keith Bell · UK Energy Research Centre View ↗

Correspondence

4 letters
DateDirectionTitle
10 Jan 2022 Correspondence with Rt Hon Greg Hands MP, Minister of State for Energy, Clean G…
20 Jul 2021 Correspondence with Rt Hon Anne-Marie Trevelyan MP, Minister for Energy, Clean …
15 Apr 2021 To cttee Letter from Rt Hon Kwasi Kwarteng MP, Secretary of State for Business, Energy &…
15 Apr 2021 Letters from Christoph Harwood, Director of Policy and Strategy, Simply Blue Gr…