Climate Change Plan: monitoring reports 2022

Chapter 1: Electricity

Part A - Overview of sector

The 2019 annual emissions envelope published in the 2018 Climate Change Plan^[1] for this sector was for 2.6 MtCO₂e, whereas the outturn emission statistics for this year (published in June 2021) show a position of 2.0 MtCO₂e. On the basis of comparing these figures, the sector was within its envelope in 2019.

The updated Plan sets out the following three policy outcomes for this sector, the indicators for which are summarised below:

The electricity system will be powered by a high penetration of renewables, aided by a range of flexible and responsive technologies.	On Track	Off Track	Too Early to Say
Electricity grid intensity (CO2e per kilowatt hour)	x
Installed capacity of renewable generation (GW)	x
Renewable capacity at planning stages (GW: 3 categories)	x

Scotland’s energy supply is secure and flexible, with a system robust against fluctuations and interruptions to supply.	On Track	Off Track	Too Early to Say
Loss of Load Expectation (hours per year)	x

Scotland secures maximum economic benefit from the continued investment and growth in electricity generation capacity and support for the new and innovative technologies which will deliver our decarbonisation goals.

There are no indicators for this policy outcome. More information is provided in Part C.

Just transition and cross economy impacts

We wish to understand and report on the broader just transition and cross-economy impacts of our emissions-reduction activities in addition to these sector specific policy outcomes and indicators. To do this, we use data from the Office of National Statistics (ONS): Low Carbon Renewable Energy Economy (LCREE) publication. The LCREE is based on survey data of businesses which perform economic activities that deliver goods and services that are likely to help generate lower emissions of greenhouse gases, for example low carbon electricity, low emission vehicles and low carbon services.

The LCREE indicator is narrowly defined and, while useful within its limited scope, does not give us the full picture of the impacts on workforce, employers and communities and progress towards a just transition.

This year we have also included ONS experimental statistics that look at green activity in the economy. These stats reflect green activities in both LCREE and non-LCREE sectors.

Over the next few years we will work to develop a meaningful set of success outcomes and indicators aimed at tracking the impacts of our policies on a just transition to net zero.

Sector commentary on progress

Scotland has made significant progress decarbonising the electricity sector, and has maintained an electricity grid intensity of below 50gCO₂e/kWh for the years 2017-2019. The overall downward trend from a carbon intensity of 320gCO₂e/kWh in 2010, is chiefly the result of the closure of two coal fired power stations in 2013 and 2016, as well as reduced reliance on gas for power generation.

There is a renewable, all energy consumption target of 50% by 2030, covering electricity, heat and transport. The Scottish Government is seeking to achieve this by expanding onshore and offshore wind, solar, bioenergy and hydro power. The recent ScotWind Offshore Wind Leasing Round saw offshore wind farms totalling 24.8GW selected, with the original aim having been 10GW. This is by far the world’s largest commercial round for floating offshore wind and breaks new ground in putting large-scale floating wind technology on the map at GW scale, and will deliver around £700m in revenues to the public purse for these initial awards alone. The Scottish Government is also committed to reviewing its energy consenting processes and to continuing efforts to ensure a sustainable security of electricity supply.

Significant powers required to decarbonise electricity in Scotland remain reserved to the UK Government. In particular, the Scottish Government is calling for a reform to the Contract for Difference mechanism and to transmission charging.

Developments in monitoring arrangements since last report

No changes.

Part B – Progress to policy outcome indicators

Policy Outcome:

Cross-sectoral social and economic indicator

Indicator

FTE employment in Low Carbon Renewable Energy Economy

On-Track Assessment (Milestone/Targets)

Year-to-year change

Most Recent Data: 2020

Data Source(s): Office of National Statistics: Low Carbon Renewable Energy Economy (LCREE), Time spent of Green Tasks

Assessment: Too early to Say

• In 2020, the Scottish low carbon renewable energy (LCREE) sectors were estimated to directly provide 20,500 jobs, down from 21,700 in 2019 and from a high of 24,000 in 2016.
• The estimates of LCREE are based on a relatively small sample of businesses and hence are subject to wide confidence intervals. LCREE employment in Scotland in 2020 is similar to previous years and the difference is not statistically higher or lower than any previous year.

Electricity graph 1

Source: Scottish Government presentation of ONS stats

• The ONS also released experimental statistics on a wider perspective of green activity in the economy with their time spent on green tasks release. These stats reflect green activities in both LCREE and non-LCREE sectors.
• This release showed that in 2019 Scotland achieved an all-time high of hours spent on green tasks and proportion of workers doing green tasks, including workers who spend more than 20% of their time on green tasks.
• The proportion of workers doing green tasks in Scotland was 36% in 2019, up from 23.8% in 2004. Workers who have spent more than 20% of their time doing green tasks was 14%, up from 9% in 2004.
• The proportion of overall hours spend doing green tasks in Scotland was 7%, up from 4.9% in 2004.

Electricity graph 2

Source: Scottish Government presentation of ONS stats

Policy Outcome

1

Indicator

Electricity grid intensity (CO₂e per kilowatt hour)

On-Track Assessment (Milestones/ Targets)

Maintain below 50g CO₂e per kilowatt hour

Most recent data: 2019

Data source(s): BEIS Energy Trends

Scottish Government Greenhouse Gas Emissions

Assessment: On track

Commentary:

• Scotland has maintained an electricity grid intensity of below 50gCO₂e/kWh for the years 2017-2019.
• 2019 saw Grid emissions fall slightly on 2018 levels from 43.1 to 41.4 g CO₂e/kWh.
• The overall downward trend from a carbon intensity of 320gCO₂e/kWh in 2010, is chiefly the result of the closure of Cockenzie and Longannet coal fired power stations in 2013 and 2016, as well as a reduced reliance on gas for power generation. This has significantly reduced the use of fossil fuels for electricity generation.
• With the closure of Hunterston B Nuclear power station in 2022, Scotland now has one Nuclear plant left at Torness that is due to close in 2028.
• Emissions from power generation are now concentrated in one large gas power plant in Peterhead, and a handful of smaller gas and diesel power stations across the country.
• Our expectations are that with an increased penetration of renewables, and no planned expansion of unabated fossil fuel power generation, Scottish Grid intensity will be maintained at 50gCO₂/kWh or below.

Electricity graph 3

Policy Outcome

1

Indicator

Installed capacity of renewable generation (GW)

On-Track Assessment (Milestones/ Targets)

Year-to-year change

Most recent data: Q3 2021

Data source(s): BEIS Energy Trends, BEIS Renewable Energy Planning Database (REPD),

Assessment: On track

Commentary:

• Scotland had 12.1 GW of installed renewable electricity generation capacity operational in 2021 Q3.
• The bulk of this capacity (8.6 GW) is from Onshore Wind followed by the next largest, large hydro at 1.3 GW.
• Offshore wind has grown from 0.18 GW in 2017 to 0.9 GW in 2021 Q3. This is expected to rise considerably in the 2020s and 2030s with the potential for 25GW of offshore wind from the first ScotWind leasing round.
• From the 2015 baseline total renewable capacity has grown by more than 60% to 2021 Q3.
• The capacity of other renewables has also risen. Solar capacity has increased 6.4% from 2020 Q3.
• The largest share of capacity is from large sites 50 MW or greater, which make up around 50% of total renewable capacity. Smaller sites less than 5 MW make up around 10% of capacity. These projects provide an important contribution to the development of smart, decentralised and local energy markets in Scotland.

Electricity graph 4

Policy Outcome

1

Indicator

Renewable capacity at planning stages (GW: 3 categories)

On-Track Assessment (Milestones/ Targets)

Year-to-year change

Most recent data: 2021 Q3

Data source(s): BEIS Renewable Energy Planning Database (REPD)

Assessment: On track

Commentary:

• Total Renewable capacity in the pipeline for Scotland was around 15.2 GW in 2021 Q3.
• There are 336 projects in the pipeline in Scotland. The majority of these projects are onshore wind farms which make up around 63% of projects and 68% of capacity (10.2GW).
• After wind Bioenergy and solar are the next biggest contributors to capacity with 527 MW and 357 MW respectively.
• Pipeline estimates do not include the potential 25GW of offshore wind that the ScotWind leasing round could add.
• Total renewable capacity in the pipeline for Scotland has consistently fluctuated between 10 GW and 15 GW for the past decade.
• Of the total capacity of 15.2 GW, 2.8 GW is under construction, most of which are offshore wind farms in the Moray firth. 6.7 GW are awaiting construction and 5.7 GW in planning.
• Were all capacity in the pipeline to be delivered it would more than double the level currently deployed, and could generate an estimated 36.7 TWh of renewable electricity per year. However, there are a number of factors that may mean that projects in planning and consented do to progress to commissioning.

Electricity graph 5

Policy Outcome

2

Indicator

Loss of Load Expectation (hours per year)

On-Track Assessment (Milestones/ Targets)

Maintain GB standard below 3 hours per year

Most recent data: October 2021

Data source(s): National Grid Winter Outlook

Assessment: On track

Commentary:

• Loss of Load Expectation (LOLE) is a measure of security of supply of the GB electricity system. This is measured through the number of probability projected hours of a year in which demand could exceed supply, and which would require measures be taken by National grid System Operator.
• Current projections from the National Grid Winter outlook 2021/22 indicate that LOLE in the grid system over 2021/22 is <0.3 hours/year in the base case.
• The LOLE is therefore expected to remain well below its target of 3 hours per year.
• LOLE ranges from 1.2 hours/year (High case) to <0.1 hours/year (Low case). Both sit comfortably within the 3 hours a year target.

Part C - Information on implementation of individual policies

Outcome 1: The electricity system will be powered by a high penetration of renewables, aided by a range of flexible and responsive technologies

Policy

Support the development of a wide range of renewable technologies by addressing current and future challenges, including market and policy barriers.

Date announced

CCP 2018

Progress on implementation since time of last report / CCPu

Onshore Wind

SG continues to maintain its focus on tackling barriers to development - such as aircraft and seismological radar issues - working in partnership with the industry and other stakeholders.

Bioenergy

SG’s aim is to see bioenergy used where it has the greatest value in reducing emissions. We are currently working to review the availability of sustainable biomass (and the most appropriate use of these finite resources) across the whole energy system in Scotland. We intend to publish a Bioenergy Action Plan in 2023, and are engaging with UK Government as they develop their Biomass Strategy this year.

Solar

Solar Power has an important role in continuing to decarbonise our heat and electricity supply, and the forthcoming Energy Strategy will (in consultation with the sector) set out a vision for its future. Solar projects are supported through a range of Scottish Government funding programmes; including Home Energy Scotland / the SME Loan Fund & the Community and Renewable Energy Scheme (CARES).

Hydro

We will work with key stakeholders to update our policy position on hydro in the forthcoming Energy Strategy Just Transition Plan later this year.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

N/A

Timeframe and expected next steps?

Ongoing

Policy

Support improvements to electricity generation and network asset management, including network charging and access arrangements that encourage the deployment and viability of renewables projects in Scotland.

Date announced

CCP 2018

Progress on implementation since time of last report / CCPu

Network charging and access is a reserved area of policy and regulation.

The Scottish Government continues to make the case to Ofgem and BEIS for a change to the transmission charging methodology and for assurances that charging and access rights create a level playing field that both enables net zero and protects consumers.

Scottish Government issued a response to Ofgem’s consultation on Electricity network Charging and Access:

The Cabinet Secretary for Net Zero Energy and Transport attended the GEMA board meeting in February 2022 where he raised the issue of transmission charges

The Cabinet Secretary for Net Zero Energy and Transport issued a letter to the UK Secretary of State, Kwasi Kwarteng, which called out transmission charges as a key risk to meeting net zero

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

N/A

Timeframe and expected next steps?

Ongoing

Policy

Publish a revised and updated Energy Strategy, reflecting our commitment to net zero and key decisions on the pathways to take us there.

Date announced

March 2020

Progress on implementation since time of last report / CCPu

In September 2021, this was updated to include Scotland’s first Just Transition Plan, following the publication of the National Just Transition Planning Framework. This will now be known as the Energy Strategy and Just Transition Plan (ESJTP). Our programme of co-design will create inclusion and enable meaningful participation. This will ensure that those most impacted by the transition to net zero are involved, which will help us identify and mitigate economic or social injustice that may be exacerbated by the transition. The timeline for the publication of the draft ESJTP has been extended to October 2022.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

N/A

Timeframe and expected next steps?

A short context-setting document will be published in May 2022. The draft ESJTP will be published for consultation in October 2022.

Policy

Develop and publish a Hydrogen Policy Statement by the end of 2020, followed by a Hydrogen Action Plan during 2021.

Date announced

2020-2021 PfG

Progress on implementation since time of last report / CCPu

Hydrogen Policy Statement published November 2020. Draft Hydrogen Action Plan published November 2021. Finalised Hydrogen Action Plan will be published in 2022.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

N/A

Timeframe and expected next steps?

Ongoing implementation of the hydrogen action plan 2021-2025/26 to achieve ambition of 5GW hydrogen production by 2030.

SG will launch the £100m hydrogen investment programme, part of the £180m Emerging Energy Technologies Fund (EETF). This includes the launch of a £10m Hydrogen Innovation Scheme. The hydrogen investment programme will support hydrogen pathfinder projects over the next 5 years. SG will ensure the regulatory / planning / consenting framework for renewable energy & hydrogen developments support the scale-up of hydrogen going forwards.

We will also ensure our ambitions for onshore/offshore wind development in Scotland support our 5GW by 2030 hydrogen ambition.

Work will continue to build on our evidence base understanding the extent of the role hydrogen is likely to play in both domestic / global markets.

Policy

A new renewable, all energy consumption target of 50% by 2030, covering electricity, heat and transport.

Date announced

CCP 2018

Progress on implementation since time of last report / CCPu

In 2020 Scotland, total renewable energy met 25.4% of total nationwide consumption. (This is an increase of 1.4% since 2019; when the figure stood at 24.0%)

This rise has largely been attributed to greater renewable electricity generation. Over 2,200 GWh extra renewable electricity was generated between 2019 – 2020 – much of this as a result of increased wind generation.

In 2020:

• The amount of electricity generated in Scotland from renewable sources was 20.7% of total energy consumption
• The amount of heat generated in Scotland from renewable sources was 3.2% of total energy consumption
• The amount of transport in Scotland running on renewable sources was 1.5% of total energy consumption

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

Currently no milestones are set, with reporting being made as and when new data comes out.

Timeframe and expected next steps?

Ongoing.

Policy

Introduce a new framework of support for energy technology innovation, delivering a step change in emerging technologies funding to support the innovation and commercialisation of renewable energy generation, storage and supply.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

SG will support the growth of the marine renewables and offshore wind sectors with a strengthened framework of support – to be set out in the forthcoming Energy Strategy – focused on funding for the infrastructure these sectors need; such as port upgrades.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

N/A

Timeframe and expected next steps?

SG established the Scottish Marine Energy Industry Working Group as a forum for the sector to speak with one voice about its priorities and the steps needed to maintain Scotland’s competitive advantage. The group will report to the Scottish Government in the near future on the key opportunities and barriers, and the collective actions needed in Scotland to build on the sector’s achievements to date.

The updated Scottish Energy Strategy (due later in 2022) will provide an opportunity to respond to the sector’s recommendations, while setting out plans for further engagement and updating our strategic approach to marine energy.

Policy

Renewed focus on developing local energy projects and models, including through CARES, supporting the achievement of 1GW and 2GW of renewable energy being in Local Community ownership by 2020 and 2030.

Date announced

CCP 2018

Progress on implementation since time of last report / CCPu

Local and community energy projects and models continue to be supported through the Scottish Government CARES Programme.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

As of December 2020, an estimated 853MW of community and locally owned renewable energy capacity was operational in Scotland.

This represents 85.3% progress towards the 2020 target, and 42.6% progress towards the 2030 target.

Annual report on Community and Locally Owned Energy in Scotland, produced by EST through the CARES contract on SG’s behalf (which monitors progress toward targets)

Timeframe and expected next steps?

A new CARES contract began in 2021, which will have an increasing focus on decarbonisation (with development of community heat supports in place from May 2022).

Policy

We will carry out detailed research, development and analysis during 2021 to improve our understanding of the potential to deliver negative emissions from the electricity sector.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

Research has been undertaken to better understand the potential for negative emissions technologies in Scotland. See NETs chapter.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

See NETs chapter

Timeframe and expected next steps?

See NETs chapter.

Policy

We will continue to review our energy consenting processes, making further improvements and efficiencies where possible, and seeking to reduce determination timescales for complex electricity generation and network infrastructure applications.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

In Q1 2022, Scottish Government published guidance on applications for generating stations & overhead line applications under the Electricity Act in order to provide greater clarity on the application & determination process for developers / planning authorities / others participating in the process.

Scottish Government’s Energy Consents Unit has recruited new case officers to ensure a fully resourced unit, which will deliver efficiencies on determination timescales.

The officers within the Energy Consents Unit received training throughout 2021 from internal / external resources in relation to key aspects of assessment and decision-making.

The average time taken to determine an Electricity Act application has reduced significantly over the last few years. In 2021 the Unit determined a total of 24 applications, taking 27 months of average. The average timescale in 2021 was 17.8 months [if no public enquiry was held].

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

SG intends to recruit further within the Energy Consents Unit throughout 2022. This will assist with continuing efficiencies to determination timeframes, & improved processes for complex applications.

Scottish Government continues to work with stakeholders to identify [where possible] further improvements can be made, such as standardisation of consent conditions.

Timeframe and expected next steps?

The Energy Consents Unit intend to recruit more Case Officers by Q3 of 2022, to ensure a fully resourced unit capable of addressing the increased application caseload.

Scottish Government launched a consultation in Q1 2022 regarding increasing application fees for generating substations and overhead lines under the Electricity Act. This is in order to ensure cost recovery for Scottish Government in dealing with such applications. Any legislation arising from this would come into force in Q4 2022.

Scottish Government is undertaking further work on standardisation of consent conditions in Q1/2 of 2022.

Policy

We will deliver the actions from our Offshore Wind Policy Statement, published in October. These actions, ranging from support for supply chain, planning, innovation and skills, will support the development of between 8 and 11 GW off offshore wind capacity by 2030.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

The results of the ScotWind offshore wind seabed leasing process were announced on 17 January 2022.

The combined ambition of ScotWind projects is 25GW of generating capacity, which if approved, would deliver far in excess of our current planning assumption of 10GW of offshore wind.

The planning and consenting processes that lie ahead means it is not possible to know now exactly what scale of development will be permitted ultimately. However, we are seeking to maximise the opportunities from ScotWind and deliver on the ambition set out in the Offshore Wind Policy Statement.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

N/A

Timeframe and expected next steps?

Ongoing

Policy

Accelerate our work with aviation, energy and other stakeholders to ensure that all radars are wind turbine tolerant/neutral during the coming decade.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

Formation of the Aviation & Renewables Collaboration Board, with distinct terms of reference / reporting structure / key deliverables.

The aim of this group is to create a more collaborative and strategic relationship between the aviation & renewables industries; delivering mutual benefit and allowing for strategic solutions to barriers for deployment.

This links in to the Bute House Agreement 8-12GW commitment and the overall Energy Strategy.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

The Group should be formed, and its deliverables / membership / timeframes announced at the point of final publication of the Onshore Wind Policy Statement.

SG are in discussion with relevant groups to consider folding these objectives into existing or proposed workstreams, so this work is subject to review.

Timeframe and expected next steps?

Informal discussions with stakeholders to establish the Group structure / where the gaps in knowledge are / what Group structure would best support delivery across both Scotland and the UK.

To follow up with RUK group ‘ONWARD’ as their membership and workplan develops.

Final publication of Onshore Wind Policy Statement is the end of 2022.

Policy

Review and publish an updated Electricity Generation Policy Statement ahead of the next Climate Change Plan.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

Not progressed due to resource constraints

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

N/A

Timeframe and expected next steps?

N/A

Outcome 2: Scotland’s electricity supply is secure and flexible, with a system robust against fluctuations and interruptions to supply

Policy

Support the development of technologies which can deliver sustainable security of supply to the electricity sector in Scotland and ensure that Scottish generators and flexibility providers can access revenue streams to support investments.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

Continued engagement with Ofgem / BEIS on the need for support for long duration energy storage. This includes Scottish Government response to the BEIS consultation.

SG provided £550,000 of funding to support demonstration of wind energy providing services (including frequency response and black start) at the Dersalloch Wind Farm in Ayrshire.

This is the first example in the world of a commercial wind farm demonstration black start, and it highlights opportunities to operate the electricity system in line with net zero ambitions.

Cabinet Secretary opened Statkraft Greener Grid Park in Moray, which will provide balancing services to National Grid and reduce reliance on gas.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

N/A

Timeframe and expected next steps?

Long duration energy storage consultation outcome expected in June. Continued engagement with ESO to take lessons learned from Dersalloch and apply under business as usual

Policy

Press the UK Government for market mechanisms and incentives which recognise locational value, both for energy and for security of supply, and which do not create undue barriers for investment in Scotland.

Date announced

CCP 2018

Progress on implementation since time of last report / CCPu

National Grid ESO has set a target to be able to operate a net zero system by 2045. This will require new market mechanisms that support net zero technologies.

Cabinet Secretary attended the GEMA board meeting, where he raised the issue of transmission charges and the need for a completely new approach to network charging.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

N/A

Timeframe and expected next steps?

Ofgem to undertake strategic review of network charges.

Policy

Collaborate on actions to support investment in new pumped storage hydro capacity.

Date announced

CCP 2018

Progress on implementation since time of last report / CCPu

SG responded to the BEIS call for evidence on Long Duration Energy Storage

Continued engagement with industry stakeholders, BEIS and Ofgem.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

N/A

Timeframe and expected next steps?

BEIS response to call for evidence is expected in summer 2022.

Policy

Work with all parties to secure maximum benefits from the move towards smarter and more flexible electricity systems and networks, as set out in the UK Smart Systems and Flexibility Plan (2017).

Date announced

CCP 2018

Progress on implementation since time of last report / CCPu

Continued engagement with Distribution Network Operators (DNOs) to support business planning and identify opportunities to test innovation.

The more recent creation of the Heat and Transport Coordination Group in 2021 will provide co-ordination and senior oversight, as well as identifying, considering and addressing overlapping and strategic issues and opportunities related to the decarbonisation of heat and transport.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

Engagement with DNO to support development of draft RIIO ED2 business plans which were submitted to the regulator in January 2022.

Scottish Power Energy Networks have received LCITP grant funding of £1,266,000 to develop the Re-Heat project. The project will implement air source heat pumps, thermal storage and smart controllers in 150 rural or semi-rural homes in East Ayrshire, East Dunbartonshire and the Highlands.

SP Distribution plc is working alongside E.ON Energy Solutions Ltd with delivery partner Derryherk Ltd and funding partner Scottish and Southern Electricity Networks to deliver the project.

The Re-heat project demonstrates how storage and smart controls can reduce the peak demands of heat pumps on energy networks.

It is hoped the learnings from the projects will facilitate a quicker transition to low carbon heat by reducing the extent to which energy networks require upgrading.

Timeframe and expected next steps?

The Reheat project is currently in its early stages and is due to commission in August 2022.

Policy

Encourage and support increased interconnection which can enhance Scottish system security while considering effects on domestic capacity and investment.

Date announced

CCP 2018

Progress on implementation since time of last report / CCPu

We have established a Major Energy Network Projects Group (MEPG) – which brings together Scottish Government energy policy / planning & consents unit officials / Scotland’s transmission network owners / the electricity system operator / key stakeholders.

The Group’s key purpose is to maintain a focus on the progress of major electricity transmission projects, while widening its focus to other major energy network projects / developments as required.

Roundtable meetings with all Key Remote Island Wind stakeholders for discussion on the key issues / barriers to deployment of sub-sea cables to the Islands.

Shetland cable is underway.

Orkney ‘Needs Case’ deadline is 31 December 2022.

Western Isles ‘Needs Case’ – there is no deadline for Ofgem in terms of final decisions; this will depend on wider developments and changes.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

N/A

Timeframe and expected next steps?

Quarterly meetings of the MEPG

Policy

Launch a call in 2021 for evidence and views on technologies that can transform our electricity system, including energy storage, smart grid technologies, and technologies to deliver sustainable security of supply. This will help ensure that our funding and interventions support world leading activity in Scottish based companies.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

Not progressed due to resource constraints.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

N/A

Timeframe and expected next steps?

N/A

Policy

Develop a series of whole system energy scenarios to guide infrastructure investment decisions for Scotland.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

Energy Systems Catapult have produced a comprehensive set of Scotland-specific whole energy system scenarios providing options to reach the 2030 and 2045 energy system targets.

These scenarios are not exclusive pathways to net zero nor are they ‘preferred options’. They provide important insights to inform discussions on the trade-offs needed to meet statutory targets.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

N/A

Timeframe and expected next steps?

The draft report on outputs from the ESC scenarios were submitted to Scottish Government in March.

Following this review, specific outputs have been shared with relevant policy teams for comment.

Policy

Ensure that sustainable security of electricity supply is included as a priority within future Scottish Government energy innovation funding programmes.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

Scottish Government provided £550,000 of funding to support demonstration of wind energy providing services including frequency response and black start, at the Dersalloch wind farm in Ayrshire

This is the first example in the world of a commercial wind farm demonstration black start and it highlights opportunities to operate the electricity system in line with net zero ambitions.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

National Grid ESO is working with industry to take lessons learned from Dersalloch and implement under business as usual.

Timeframe and expected next steps?

Ongoing.

Outcome 3: Scotland secures maximum economic benefit from the continued investment and growth in electricity generation capacity and support for the new and innovative technologies which will deliver our decarbonisation goals

Policy

Press the UK Government to further reform and maintain the CfD mechanism in a manner which better captures the economic benefits and total value added for the Scottish and UK supply chains.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

The Cabinet Secretary wrote to Secretary of State Kwasi Kwartang re: changes to the Contracts for Difference (CfD) Allocation Rounds.

The purpose of this was to encourage him to review the ring-fenced budget allocated for emerging tech in future rounds; as there is concern without doing so Scotland will not be able to deliver the infrastructure needed to achieve net zero on time. The message ended with an entreaty to both Ofgem & BEIS to ensure there is minimal delay to changes via regulatory approval.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

BEIS confirmed that Annual auctions will take place.

Timeframe and expected next steps?

CfD AR 4 will conclude between April and July 2023.

Policy

Introduce new requirements for developers to include supply chain commitments when applying to the ScotWind leasing process run by Crown Estate Scotland.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

We will use every lever within our devolved competence to support & grow the offshore wind supply chain here in Scotland.

Each ScotWind applicant was required to include a Supply Chain Development Statement (SCDS) setting out its supply-chain goals, & committing the developers to meeting these through various stages of their projects.

Failures to deliver on commitments will trigger remedies ranging from financial penalties to an inability to progress to a seabed lease.

This has produced a leasing round focused on quality & deliverability of bids, and the long term prize of supply chain investment – which promises to transform the Scottish economy in coming decades.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

Developers have committed to investing an average of £1bn in the Scottish supply chain for every gigawatt of capacity in their development plans.

Timeframe and expected next steps?

We see these statements as the expectation of what the bid winners will deliver for Scotland.

Long standing project, as it will take some time to get everything in motion.

Policy

Identify and support major infrastructure improvements to ensure that Scotland’s supply chain companies and facilities can benefit from the continued growth of renewable energy.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

Scottish Offshore Wind Strategic Investment Assessment was published in August 2021.

The main recommendation focusses on the creation of a Scottish Floating Offshore Wind Port Cluster with targeted investment in ports and harbours upgrades and infrastructure to ensure there is capability and capacity to support the build-out of ScotWind projects and grow Scotland’s domestic supply chain.

Have any implementation indicators / milestones been set for this policy? If so, most recent data for progress against these.

Scottish Offshore Wind Energy Council (SOWEC) has been leading sector discussion on the development of a Collaborative Framework to encourage the offshore wind sector to work together to deliver on the scale and ambition of ScotWind.

Timeframe and expected next steps?

Final version of the Collaborative Framework will be circulated to all developers in April with a launch later in the month, where all signatories will be identified.