Fourth Report - Renewable energy in Scotland

Select Committee
Scottish Affairs Committee HC 51 17 September 2021
Report Status Government responded
Conclusions & Recommendations 11 items (6 recs)
Government Response (AI assessment · 10 of 11 classified)
Government response
Renewable energy in Scotland: Government Response to the Committee’s Fourth Report · published 1 Dec 2021

Recommendations & Conclusions

11 results
1 Conclusion Acknowledged
Para 7
The potential scale of renewable energy in Scotland is huge.
Conclusion
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 … Read more
Government Response Summary
The government acknowledges the committee's positive outlook, explaining that its Net Zero Strategy, published in October 2021, outlines measures to achieve climate goals and create green jobs across the UK, including Scotland, through existing mechanisms like the Contracts for Difference scheme.
Scotland Office
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2 Recommendation Accepted
Para 11
The grid is critical for renewable energy to reach consumers.
Recommendation
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 … Read more
Government Response Summary
The government states that network regulation is a matter for Ofgem and highlights Ofgem's existing RIIO-2 price control framework, which already focuses on enabling strategic investment in the grid to support net zero ambitions.
Scotland Office
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3 Conclusion Deferred
Para 14
The evidence we have heard has highlighted issues around the volatility of transmission charges.
Conclusion
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 … Read more
Government Response Summary
The government acknowledges the importance of transmission charging arrangements but defers to Ofgem's ongoing call for evidence on reforms, stating that next steps will be announced later.
Scotland Office
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4 Conclusion Deferred
Para 20
Locational transmission charges weigh more heavily on developers in Scotland when projects in other areas...
Conclusion
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 … Read more
Government Response Summary
The government acknowledges the committee's view on transmission charges but defers to Ofgem's ongoing call for evidence on reforms, with next steps expected to be announced later this quarter.
Scotland Office
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5 Recommendation Deferred
Para 21
We recommend that the UK Government specifies that, as part of its internal review, Ofgem...
Recommendation
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 … Read more
Government Response Summary
The government defers to Ofgem's ongoing call for evidence on transmission charging reforms, stating that Ofgem will announce next steps later this quarter, without committing to the specific review or publication timeline requested.
Scotland Office
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6 Recommendation Rejected
Ofgem is considering net zero targets in their planning.
Recommendation
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 … Read more
Government Response Summary
The government rejects amending Ofgem’s statutory duties, stating that Ofgem's current duty already covers emissions reduction, and it plans to introduce a Strategy and Policy Statement (SPS) to provide legally binding strategic guidance on net-zero responsibilities.
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7 Recommendation Acknowledged
Para 37
Contracts for Difference (CfD) has been useful in driving down the cost of offshore wind...
Recommendation
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 … Read more
Government Response Summary
The government acknowledges the need for CfD scheme design to evolve for maximum benefit and states that views from a recent call for evidence are being factored into future policy design, but doesn't explicitly commit to prioritising net zero targets and best value in the *next* CfD round.
Scotland Office
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8 Recommendation Acknowledged
The UK is at the forefront of tidal renewable energy technology, but the UK Government...
Recommendation
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 … Read more
Government Response Summary
The government acknowledges tidal stream's potential but states it must reduce costs to compete. It notes tidal stream is CfD eligible and is currently evaluating material from a call for evidence on marine energy, without committing to guaranteed financial support.
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9 Conclusion Acknowledged
Para 54
The Scottish Government suggested in analysis that 130,000 green jobs could have been created by...
Conclusion
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 … Read more
Government Response Summary
The government acknowledges the importance of green jobs and outlines its existing Net Zero Strategy and Contracts for Difference scheme, which aim to create jobs and support renewable energy across the UK, including Scotland.
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10 Recommendation Acknowledged
We recommend that the Scottish Government progress their Green Jobs Fund more rapidly and the...
Recommendation
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 … Read more
Government Response Summary
The government acknowledges its commitment to green investment and job creation through the Net Zero Strategy and Ten Point Plan, stating that existing mechanisms like the Contracts for Difference scheme already benefit Scotland, but does not commit to specifically allocating a portion of the £12 billion for direct investment in Scottish renewable energy projects.
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11 Conclusion
Due to the wide subject of renewable energy, we were not able to focus on...
Conclusion
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 … Read more
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