Climate Change Plan: monitoring reports 2022

Chapter 2: Buildings

Part A - Overview of sector

The 2019 annual emissions envelope published in the 2018 Climate Change Plan^[2] for this sector was for 8.9 MtCO₂e, whereas the outturn emission statistics for this year (published in June 2021) show a position of 9.4 MtCO₂e. On the basis of comparing these figures, the sector was outside its envelope in 2019.

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

The heat supply to our homes and non-domestic buildings is very substantially decarbonised, with high penetration rates of renewable and zero emissions heating.	On Track	Off Track	Too Early to Say
Number of existing domestic properties using low and zero greenhouse gas emissions heating systems			x
Services sector fossil fuel heat demand			x

Our homes and buildings are highly energy efficient, with all buildings upgraded where it is appropriate to do so, and new buildings achieving ultra-high levels of fabric efficiency	On Track	Off Track	Too Early to Say
Energy intensity of residential buildings (MWh per household)	x
Emissions intensity of non-domestic buildings (tonnes of CO2e per £ million Gross Value Added)	x
% of homes with an EPC (EER, or equivalent) of at least C			x
% new homes built with a calculated space heating demand of not more than 20 kWh/m²/yr	x

Our gas network supplies an increasing proportion of green gas (hydrogen and biomethane) and is made ready for a fully decarbonised gas future.	On Track	Off Track	Too Early to Say
% of Scottish gas demand accounted for by biomethane and hydrogen blended into the gas network			x

The heat transition is fair, leaving no-one behind and stimulates employment opportunities as part of the green recovery	On Track	Off Track	Too Early to Say
Percentage of households in fuel poverty			x

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

The Scottish Government published the final Heat in Buildings Strategy in October 2021. The Strategy sets out our vision for the future of heat in buildings, and the actions we are taking in the buildings sector to deliver our climate change commitments, maximise economic opportunities, and ensure a just transition, including helping address fuel poverty. The strategy makes clear the necessity of accelerating progress on retrofitting our buildings, including growing the rate of conversion from fossil fuel heating to zero emissions systems from recent levels of around 3,000 per year to around 200,000 per year later this decade.

The emissions reported above relate to the period two years prior to the publication of the Heat in Buildings Strategy, meaning the impact of our boosted ambition will not be visible in those statistics. Below (Part B) we set out specific indicators, though for several of these it is not possible to report progress due to disruption caused by COVID-19 to the collection and publication of the Scottish House Condition Survey. The most recent available data for these indicators is from 2019, which forms the baseline for these indicators. The Scottish House Condition Survey is a nationally representative survey of Scottish households, and represents a key source of information on primary heating fuel, energy performance and energy demand across the domestic building stock. Data for 2021 is due to be published in February 2023.

The three remaining indicators are rated as on-track: emissions intensity of non-domestic buildings (tCO₂e/£mGVA), % new homes built with a calculated space heating demand of not more than 20 kWh/m²/yrT, and energy intensity of residential buildings (MWh per household).

Part C shows that significant steps have been made towards progressing key commitments in the buildings sector as set out in the CCPu.

Furthermore, the Heat in Buildings Strategy commits us to publishing a Heat in Buildings Monitoring and Evaluation Framework. This will be published in due course, and will include a more detailed ratings approach for headline Heat in Buildings indicators.

Developments in monitoring arrangements since last report

Several indicators have been updated, as set out below, to better align with the objectives of the Heat in Buildings Strategy.

These changes have been made to better align with objectives as set out in the Heat in Buildings Strategy, published subsequently to the Climate Change Plan update.

Previous indicator: % heat in buildings from low greenhouse gas emissions sources

New indicator: Number of existing domestic properties using low and zero greenhouse gas emissions heating systems

Previous indicator: % of buildings using low greenhouse gas emission heating systems

New indicator: Services sector fossil fuel heat demand (GWh)

Previous indicator: Energy intensity of non-domestic buildings (GVA in the services sector per GWh)

New indicator: Emissions intensity of non-domestic buildings (tonnes of CO₂e per £ million Gross Value Added)

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.

Buildings graph 1

Source: Scottish Government presentation of ONS statistics

• 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.

Buildings graph 2

Source: Scottish Government presentation of ONS stats

• 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.

Policy Outcome

1

Indicator

Number of existing domestic properties using low and zero greenhouse gas emissions heating systems

On-Track Assessment (Milestones/ Targets)

Progress to target [to increase to at least 1.5 million by 2030]

Most recent data: 312,000 domestic properties use low and zero greenhouse gas emissions heating systems in 2019

Data source(s): Scottish House Condition Survey - gov.scot (www.gov.scot)

Assessment: Too early to say

Commentary:

In 2019, there were 312,000 domestic properties using low or zero greenhouse gas emissions heating systems. These were properties with either electricity, biomass or communal heating as their primary heating fuel.

“Low and zero emissions heating systems” are heating systems that have zero direct greenhouse gas emissions^[3] (such as individual electric heat pumps, connection to heat networks, and electric systems such as storage heaters), and those that have very low direct emissions (such as those that use hydrogen). Note that, buildings connected to existing heat networks, generally powered using natural gas, are included as they are considered future proofed and net zero ready. However, as set out in the Heat Networks Delivery Plan, operators of existing heat networks will be required to prepare and implement a Heat Network Decarbonisation Plan to reduce their emissions over time, and once our heat network legislative framework is in place, any new heat networks will need to be powered by heat from low or zero emissions sources. The list of low and zero emissions heating systems will be kept under review.

As set out in the Heat in Buildings Strategy, to stay within the Buildings’ sector emissions envelope, by 2030 the vast majority of the 170,000 off-gas homes that currently use high emissions oil, LPG, and solid fuels, as well as at least 1 million homes currently using mains gas, must convert to low and zero emissions heating. Therefore, including the 312,000 existing properties using low and zero emissions heating systems in the baseline, our overall target is that at least 1.5 million properties existing in 2020 will use low and zero emissions heat by 2030. This does not include new build properties, which are out of scope for this indicator. In future years, an adjustment will be made to Scottish House Condition Survey (SHCS) data to account for new build properties using low and zero emissions heating, to ensure we are capturing only existing properties.

The Heat in Buildings Strategy was published after the Climate Change Plan update and the corresponding monitoring framework. Therefore, this indicator has been added to improve alignment with our objectives as set out in the Heat in Buildings Strategy, and the forthcoming Heat in Buildings Monitoring and Evaluation Framework. This framework will be robust, independent, thorough and long-term, and will take account of the Climate Change Plan monitoring framework as well as monitoring and evaluation requirements for Fuel Poverty.

SHCS data is usually published with a one year lag. However, with the suspension of face-to-face interviewing in March 2020, the data collection for SHCS 2020 was not completed. The results of the 2021 SHCS are expected to be published in February 2023. Therefore, the most recent data is for 2019. This is the baseline year for this indicator, and therefore no change is observed and an assessment of progress towards the target cannot be provided.

Policy

1

Outcome

Services sector fossil fuel heat demand

Indicator

Progress to target [to reduce to 5,000 GWh by 2030]

On-Track Assessment (Milestones/ Targets)

Most recent data: Commercial sector fossil fuel heat demand was 11,170 GWh in 2020

Data source(s): Scottish Energy Statistics Hub (shinyapps.io), using input from:

BEIS: Sub-national total final energy consumption data BEIS: Energy Consumption in the UK: end use

Assessment: Too early to say

Commentary:

In 2020, services sector fossil fuel heat demand was 11,170 GWh. This includes demand for coal, gas and petroleum products. This excludes demand for bioenergy and waste, which is considered low or zero emissions. This figure is provisional and will be finalised in September 2022, when actual consumption data is available.

The Heat in Buildings Strategy sets out our ambition to convert the equivalent of 50,000 non-domestic buildings to low and zero emissions heat by 2030, which illustrates the scale of conversion required to meet emissions reduction targets. However, given the greater diversity in size, use and construction of non-domestic buildings as compared with dwellings, there is significantly more variation in energy demand and emissions across the non-domestic building stock. Therefore, a formal indicator based on the number of buildings without accounting for these differences would not align with our overall objective of reduction emissions, and would be potentially misleading.

Therefore, a rating based on fossil fuel heat demand is more appropriate, as this more directly relates to greenhouse gas emissions. Converting the equivalent of 50,000 non-domestic buildings (existing in 2020) to zero emissions heat by 2030 would bring the total fossil fuel heat demand from the Services sector below 5,000 GWh.

A ratings approach for this indicator will be more fully developed as part of the Heat in Buildings Monitoring and Evaluation Framework. Therefore this indicator is rated too early to say.

Policy Outcome

2

Indicator

Energy intensity of residential buildings (MWh per household)

On-Track Assessment (Milestones/ Targets)

Progress to target [to fall by at least 30% by 2032]^[4]

Most recent data: Reduction of 1.3% from 2015 to 2019

Data source(s): Scottish Energy Statistics Hub (shinyapps.io), using input from:

BEIS: Sub-national total final energy consumption data BEIS: Energy Consumption in the UK: end use Scottish Government: Scottish Greenhouse Gas Emissions NRS: Estimates of Households and Dwellings in Scotland

Assessment: On track

Commentary: The Climate Change Plan target of reducing average household energy intensity by 30% from 2015 level in 2032 gives a target of 12,556 kWh/household. In 2019, the average energy intensity was 17,699 kWh/household, a reduction of 1.3% since 2015 (17,937 kWh/household). Although overall domestic energy consumption has increased slightly in those years, the number of households has also increased, leading to the overall reduction per household.

Over the same period, average emissions intensity has fallen by 1.2% to 2.49 tCO₂/household from 2.52 tCO₂/household in 2015. As with energy efficiency, the slight increase in overall residential emissions is offset by the increase in the number of households.

The minimum viable pathway (MVP) shows the minimum progress on average energy intensity that would be needed to reach the target of a 30% reduction by 2032, and shows that it is currently on track.

Buildings graph 3

Policy Outcome

2

Indicator

Emissions intensity of non-domestic buildings (tonnes of CO₂e per £ million Gross Value Added (GVA))

On-Track Assessment (Milestones/ Targets)

Progress to target [fall by 20% by 2025 and 30% by 2032, as compared to 2015]

Most recent data: 35.4tCO₂e/£mGVA in 2018

Data source(s): Scottish Energy Statistics Hub (shinyapps.io), using input from:

BEIS: Sub-national total final energy consumption data BEIS: Sub-national residual fuel consumption data Scottish Government: Scottish Greenhouse Gas Emissions Scottish Government: Quarterly National Accounts Scotland - sectoral breakdown (Unpublished)

Assessment: On track

Commentary:

In 2018, emissions intensity of the services sector was 35.4tCO₂e£mGVA, a reduction of 0.3tCO₂e/£mGVA compared to 2017 and a reduction of 7.2% on 2015.

The Climate Change Plan set ambition in the services sectors to reduce emissions intensity by 10% by 2015, 20% by 2025 and 30% by 2032, from a 2015 baseline, through a combination of fuel diversification, energy efficiency improvements and heat recovery. Emissions intensity is sectoral emissions divided by GVA in the sector.

Emissions intensity has been falling in the services sector, as a result of increasing GVA and relatively flat emissions.

The expected emissions intensity of the services sector to meet the 2020, 2025 and 2032 targets is set out below. As the recorded emissions intensity of the services sector in 2018 is below the expected value, progress is currently considered to be on-track.

Buildings graph 4

Policy Outcome

2

Indicator

% of homes with an EPC (EER, or equivalent) of at least C

On-Track Assessment (Milestones/ Targets)

Progress to 2033 target [all homes to have EPC C or higher where technically feasible and cost effective]

Most recent data: 45% in 2019

Data source(s): Scottish House Condition Survey - gov.scot (www.gov.scot)

Assessment: Too early to say

Commentary:

The Scottish Government has accelerated its ambition for all homes to reach a good standard of energy efficiency, equivalent at least to EPC C, where feasible and cost effective by 2033 (2028 for private rented homes). The previous target was for this standard to be reached by 2035.

In 2019, 45% of dwellings were at EPC C or above, an increase of 2pp since the previous year. It is too early to say whether this indicator is on track as more recent data is not available.

Policy Outcome

2

Indicator

% new homes built with a calculated space heating demand of not more than 20 kWh/m²/yr

On-Track Assessment (Milestones/ Targets)

Year-to-year change

Most recent data: Analysis of new build home completions in 2020

Data source(s): EPC data for Q1 to Q4 2020 lodged to the Scottish Energy Performance Certificate Register Home (scottishepcregister.org.uk)

Assessment: On track

Commentary:

Without applying any moderation to remove potentially erroneous values, 1,191 records reported a heat demand intensity of 20 kWh/m²/year or less. This is 7.93% of completions for 2020. This is an increase on 2019, when 6.40% of new homes were reported to have a space heat demand intensity of 20 kWh/m²/year or less.

Adjusting the flow to account for any potentially erroneous values: Removing the 0.5% of the lodged records with the lowest space heating demand intensity and the 0.5% with the highest space heating demand intensity in effect removes all but seven of the records with a space heating demand intensity of less than 10 kWh/m²/year, and removes all records with a space heating demand intensity of greater than 106 kWh/m²/year. This leaves 1,116 records (7.51%) with a space heating demand intensity of 20 kWh/m²/year or less. The adjusted figure for 2019 was 5.96%.

The on-track assessment of this indicator is based on year-to-year change, with the percentage of new homes built with a calculated space heating demand of not more than 20 kWh/m²/year increasing between 2019 and 2020. No target/milestone is given for this indicator. The maximum level of space heating demand is based upon a number of variables including the type and mix of new build completions. Whilst the minimum standards set in guidance on building fabric in new homes will drive improvement, these standards are also reviewed only every few years and take several years to ‘bleed through’ into new build completions. We will undertake an evaluation of the likely milestone for 2023 to 2026 based upon the implementation of the changes to be applied later in 2022.

Policy Outcome

3

Indicator

% of Scottish gas demand accounted for by biomethane and hydrogen blended into the gas network

On-Track Assessment (Milestones/ Targets)

Progress to target [to increase to 20% by 2030]

Most recent data: 1.65% in 2021

Data source(s): Scottish Gas Network (SGN) (unpublished data) and BEIS (Regional and local authority gas consumption statistics)

Assessment: Too early to say

Commentary:

In 2021, 1.65% of Scottish gas demand was accounted for by biomethane gas. This is an increase of 0.12 percentage points compared to 2020, and 1.39 percentage points compared to 2015.

As set out in the Heat in Buildings Strategy, it’s our ambition that by 2030 at least 20% of the volume of the gas in the GB gas grid to be alternatives to natural gas.

However, several of the key policy levers required to achieve this are not within direct Scottish Government control, and therefore we need further information from the UK Government before we can set out the expected pathway towards this target. For example, whether there is likely to be a gradual or step change in the amount of hydrogen blended in the gas grid, and at what point this will begin. Therefore, this indicator is rated as too early to say.

Policy Outcome

4

Indicator

Percentage of households in fuel poverty

On-Track Assessment (Milestones/ Targets)

Progress to 2040 target [no more than 5%] interim 2030 [no more than 15%] 2035 [no more than 10%] targets^[5]

Most recent data: 24.6% of households were estimated to be living in fuel poverty in 2019.

Data source(s): Scottish House Condition Survey 2019

Assessment: Too early to say

Commentary:

Buildings graph 5

In 2019, an estimated 24.6% of all households (613,000 households) were in fuel poverty, similar to 2018 but lower than that recorded in the survey between 2012 and 2015. Since 2016 the rate of fuel poverty has remained between 23% and 26%.

Around 12.4% were living in extreme fuel poverty, similar to 2018 but a decrease from 16% in 2013. Since 2015, the rate of extreme fuel poverty has remained between 11% and 13%.

In 2019, the median fuel poverty gap (adjusted for 2015 prices) for fuel poor households was £700. This is higher than the median fuel poverty gap (adjusted for 2015 prices) in 2018 (£610) but similar to the median gap in 2012 to 2017.

The Fuel Poverty (Targets, Definition and Strategy) (Scotland) Act 2019 received Royal Assent in July 2019. The Fuel Poverty Strategy^[6] required by the Act was published in December 2021 and sets out how the targets will be achieved. The Act requires that a monitoring and evaluation framework is developed to support the Fuel Poverty Strategy and that the statutory Fuel Poverty advisory panel is consulted on this. As the panel was only appointed on the same day the Fuel Poverty strategy was published, this has not yet been progressed. It is therefore too early to say whether progress towards this target is on track.

The most recent data for this indicator is from the 2019 SHCS. Following the suspension of face-to-face interviewing in March 2020, there was no further data collection for the 2020 SHCS. The 2021 SHCS was carried out by an external-only inspection, supplemented with alternative sources of data (e.g. from the Energy Performance Certificate) and the householder providing information to surveyors via telephone. This external+ approach was designed to provide as reliable as possible estimates of key statistics, including on fuel poverty, energy efficiency and external repairs, while maintaining no contact with the household. No data was collected on internal aspects such as room repairs and aspects of housing standards. The results of the 2021 SHCS are expected to be published in February 2023.

We acknowledge that the increase in energy prices since 2019 will have increased the number of households living in fuel poverty. Our analysis of the impact of the April 2022 energy price cap increase suggests that up to 831,000 households (one out of every three households) could now be living in fuel poverty. This is an increase of up to 218,000 since 2019.

Part C - Information on implementation of individual policies

Outcome 1: The heat supply to our homes and non-domestic buildings is very substantially decarbonised, with high penetration rates of renewable and zero emissions heating

Outcome 2: Our homes and buildings are highly energy efficient, with all buildings upgraded where it is appropriate to do so, and new buildings achieving ultra-high levels of fabric efficiency

Policy

Energy Company Obligation (ECO) requires obligated energy supply companies to deliver energy efficiency measures in homes – mainly insulation-based measures and boiler replacements.

Date announced

CCP 2018

Progress on implementation since time of last report / CCPu

ECO provides finance for energy efficiency improvements benefitting fuel poor households but offers limited funding for zero carbon heating measures.

The Secretary of State (BEIS) retains an absolute veto over how these schemes are designed, operate and are financed through the energy levies in Scotland. Scottish Ministers have expressed their view that this is not an acceptable basis upon which to set regulations for a Scottish scheme.

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

Since 2013, approximately 13.3% of all households receiving ECO measures have been delivered in Scotland (to around 12% of all households in Scotland).

Timeframe and expected next steps?

The ECO3 scheme concluded in March 2022. The scheme is replaced by ECO 4, running from April 2022 until March 2026.

Policy

Energy Efficient Scotland Delivery Schemes:

• Area Based Schemes and Warmer Homes Scotland.
• Home Energy Scotland Advice Service and Loans.
• Home Energy Scotland cashback scheme for zero emissions heating technologies and energy efficiency measures - boosted.
• SME Advice Service and Loans.
• SME cashback scheme for zero emissions heating technologies and energy efficiency measures - boosted.

Date announced

2020-2021 PfG

Progress on implementation since time of last report / CCPu

Area Based Schemes now provide increased funding for whole house retrofits, zero/ low carbon heating and microgeneration.

Through Warmer Homes Scotland (WHS) we have made available renewable and micro generation heat measures and new insulation measures. Grant funding has also been increased to incentivise uptake on more expensive low carbon & renewable measures.

The HES Loans and Cashback Scheme provides up to £15,000 for energy efficiency improvements plus up to £17,500 for zero emissions heating and micro-renewables and up to £6,000 for battery storage. Cashback grants are available with the loans of up to £7,500 on zero emissions heating systems plus up to £6,000 for energy efficiency measures.

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

ABS has delivered over 100,000 energy efficiency improvements since 2013.

WHS has been operating since Sept 2015 helping more than 25,000 households throughout Scotland.

The Home Energy Loan Scheme has been operating since 2017 and has funded 4175 energy efficiency measures and 3958 renewable technology improvements to over 6000 Scottish households.

Timeframe and expected next steps?

Scottish Ministers have expressed their intention to provide multi-year resource assumptions for ABS. Guidance for 21-22 schemes is being drafted and officials hope that this will be incorporated for ABS 10 (22-23) onwards.

Policy

Review support programmes: We will review existing Scottish Government funding schemes to ensure that they support the deployment of low and zero emissions heat. We will expand the provision of loans to the SME sector, and enhance the wider energy efficiency and heat advice service and provision of tailored start-to-end support.

Date announced

2020-2021 PfG

Progress on implementation since time of last report / CCPu

Work on this is underway. Provision to the SME sector has been expanded

The Heat in Building Strategy committed Scottish Ministers to replacing the cashback offer for homeowners and SME businesses in 2022-23 with a grant scheme to support energy efficiency and zero emissions heat improvements.

Timeframe and expected next steps?

Work is underway. A new offering of Non-domestic Advice and support service was launched on 1 April 2022. Business Energy Scotland (BES) will assist SMEs in Scotland to decarbonise their premises and processes and act as a gateway to the SME Loan and Cashback scheme.

Policy

Procure a new national delivery scheme, to replace the existing Warmer Homes Scotland contract, to open in 2022.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

The formal procurement process for the new National Scheme that will be the successor to Warmer Homes Scotland is underway. The Prior Information Notice (PIN) which informs the market of the upcoming tender opportunity was published on 17 December. A virtual supplier event took place on 10 February to give further information about the new scheme and procurement process to businesses with an interest in delivery of the contract.

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?

We have committed to procuring a successor scheme to go live when the current Warmer Homes Scotland contract expires. The existing WHS contract is in the process of being extended to run until June 2023 and procurement of the successor is aligned with this timeframe to go live once the current contract expires. The next steps in the procurement timeline are the publication of the ITT (Invitation to Tender), evaluation of tender responses, contract award and then a mobilisation period for the winning bidder.

Policy

Energy Efficiency Standard for Social Housing: will be met by social landlords by 2020.

Date announced

CCP 2018

Progress on implementation since time of last report / CCPu

89% of social landlords meet Energy Efficiency Standard for Social Housing (EESSH2).

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

The Scottish Housing Regulator reported that 87% of social rented homes were already meeting the 2020 milestone as of the end of March 2020, landlords will provide their final report on performance against EESSH1 in 2021.

Timeframe and expected next steps?

Completed

Policy

New Build Heat Standard (NBHS): requiring new buildings, applying for a building warrant from 2024 onwards, to use zero direct emissions heating (ZDEH) systems.

Date announced

2020-2021 PfG + CCPu

Progress on implementation since time of last report / CCPu

We have created an external, independently co-chaired working group to support development of Standard.

We have created a non-domestic sub-group to support main working group. This sub-group met again in March 2022.

We have completed 3 research projects, which considered cost implications, network issues and other key challenges associated with the introduction of ZDEH.

We have commissioned 2 further research projects: one to determine the emissions associated with various heating technologies, along with phase 2 of our affordable housing ZDEH evaluation.

In December 2020, we launched our initial Scoping Consultation on the NBHS. The consultation closed March 2021, with the analysis of responses published in October 2021: New Build Heat Standard: scoping consultation - Scottish Government - Citizen Space

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

We committed to consulting on the Standard in 2020. This was achieved.

Timeframe and expected next steps?

Next steps:

Drafting and launch of second consultation this year. And specifically consulting on the detail of the Non-Domestic New Build Heat Standard and how it will apply to the diversity of stock.

Drafting of regulations ahead of implementation in 2024.

Policy

Review of energy standards within building regulations. The review investigates the potential for further, significant improvement on 2015 standards and how building standards can support other carbon and energy policy outcomes, including our decarbonisation of heat agenda.

Date announced

CCP 2018

Progress on implementation since time of last report / CCPu

Research to inform review of current standards, last updated in 2015, was completed in 2020. An industry working group was convened in December 2020 and is currently supporting the review process. We consulted on proposals for improved energy standard from July to November 2021.

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

Yes. Related indicator within CCPu – “% new homes built with a calculated space heating demand of not more than 20 kWh/m²/yrT”. Initial report contribution provided in February 2021. Intent is that this percentage can be updated annually from energy performance certificate data from new home completions to illustrate the change delivered by periodic review of standards.

Data to illustrate the impact of the review will accrue from energy performance certificates lodged from new homes built to the 2022 standard.

Timeframe and expected next steps?

Timetable for delivery of change revised from late 2021.

Amendment regulations were laid in Parliament on 22 April 2022. Revised standards and guidance to be published at the end of May 2022. New provisions apply to building warrant applications submitted from 1 October 2022.

A building warrant, once granted, is valid for three years. Accordingly, the proportion of new homes completed to the 2022 standards will increase to from 2023 to 2026.

Policy

Heat in Buildings regulation: Put in place regulation to increase uptake of zero emissions heating systems and improve energy efficiency standards across owner occupied and private-rented homes to come into force from 2025.

Date announced

Heat in Buildings Strategy

Progress on implementation since time of last report / CCPu

Commitment in the Heat in Buildings Strategy to introduce regulations to achieve this, including a clear timeframe for consulting on and laying of regulations, and backstop dates for compliance, including minimum energy efficiency standards (equivalent to EPC C) in private-rented homes by 2028 and in owner occupied homes by 2033.

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

Milestones have been set in the Heat in Buildings Strategy regarding dates to consult and lay regulations. Backstop dates for compliance have also been discussed but not consulted on.

Timeframe and expected next steps?

Next steps: Consult on detailed proposals over the coming year.

Policy

Low Carbon Infrastructure Transition Programme (LCITP) - supports investment in decarbonisation of business and the public sector.

Date announced

2020-2021 PfG

Progress on implementation since time of last report / CCPu

The LCITP continues to provide support investment in decarbonisation of business and the public sector. Launched in September 2020 the Green Recovery: Low Carbon Energy Project Capital Funding Invitation targeted £50 million of support for project that demonstrate innovative low carbon heat solutions for buildings.

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

No

Timeframe and expected next steps?

The LCITP formally drew to a close in April 2022.

Policy

Expanded £1.6bn Heat in Buildings capital funding over the next parliament Building on the Low Carbon Infrastructure Transition Programme (LCITP) and existing energy efficiency and zero emissions heat support programmes.

Date announced

2020-2021 PfG

Progress on implementation since time of last report / CCPu

As set out in the Heat in Buildings Strategy, we have boosted our ambition to invest at least £1.8 billion in heat and energy efficiency over the course of the current parliament.

This includes Scotland’s Heat Network fund, which was launched 21 February 2022 making available £300 million capital over this parliament to support the development and roll out of zero emission heat networks across Scotland. It also includes at least £465m to support those least able to pay, £200m for the Social Housing Net Zero Heat Fund, and £200m Scottish Green Public Sector Estate Scheme.

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?

We will launch a pre-capital support unit as part of virtual energy agency to support development of heat networks later this year.

In March 2022, we launched the £1 million Heat in Buildings Development Funding Invitation to make grant funding available for the development of investment grade business cases for zero emissions heat projects in buildings.

The Invitation is open until 31 May 2022.

Policy

Non Domestic Public Sector Energy Efficiency (NDEE) Framework: A four year framework launched in March 2016, designed to support public and third sector organisations to procure Energy Efficiency retrofit work. The Framework will continue for a further four years commencing in 2020. NDEE Support Unit accelerates the number of projects and delivery timescales of public sector energy efficiency projects using the NDEE Framework and supports our wider ambitions around energy demand reduction.

Date announced

CCP 2018

Progress on implementation since time of last report / CCPu

In 2020, the Scottish Government launched the 2nd generation Non-Domestic Energy Efficiency (NDEE) frameworks consisting of the NDEE over £1 Million Projects framework, NDEE sub £1 Million Projects framework and NDEE Project Support Unit framework. These framework will continue to support public and third sector bodies in Scotland accelerate energy efficiency retrofit projects across their estates. The NDEE Frameworks are innovative in the way that they cover multiple and diverse energy efficiency and renewable energy solutions. Further support is being provided to the public sector estate through the Green Public Sector Estate Decarbonisation scheme which is making available at least £200 million over this parliament to aid the decarbonisation of Scotland’s public sector estates.

Timeframe and expected next steps?

Frameworks and project support unit will operate until 2023.

The central government energy efficiency grant fund will reopen to applications Q2 of 2022. This fund will provide grant support for Scottish public bodies classified as central government to improve the energy efficiency of their buildings and install low and zero carbon heat systems in building.

Policy

The Renewable Heat Incentive (RHI) - a GB-wide scheme created by the UK Government (with the agreement of the Scottish Government). UK Government is extending both the domestic and non-domestic RHI out to 2022

Date announced

August 2020

Progress on implementation since time of last report / CCPu

1,130.7 MW of accredited capacity under the non-domestic RHI (NDRHI) between November 2011 and January 2022.

1,565 GWh of heat had been paid for between April 2014 and end December 2021 under the domestic RHI scheme in Scotland.

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

Scotland consistently attracted more than its pro-rata share under the NDRHI, with around 19% of non-domestic accredited installations being in Scotland.

Timeframe and expected next steps?

The NDRHI closed as scheduled on 31 March 2021, though qualified extensions for both Tariff Guarantee and non-Tariff Guarantee applications were implemented prior to its closure.

The Domestic Renewable Heat Incentive (DRHI) formally closed on 31 March 2022, and has been replaced by the Boiler Upgrade Scheme. The Scottish Government has opted out of the Boiler Upgrade Scheme in favour of boosting our existing programmes.

Policy

UK Green Gas Support Scheme - a GB-wide Green Gas Scheme is planned to come into force in 2022, stimulating biomethane injection into the gas grid.

Date announced

UK Government announcement

Progress on implementation since time of last report / CCPu

This scheme opened in November 2021.

The Scottish Government liaised closely with the UK Government on the development of the Green Gas Support Scheme (GGSS) SI and the Cab Sec provided formal consent to the laying of the SI for the scheme in September 2021.

The Scottish Government has also worked closely with the UK Government and Ofgem to ensure access to data for the purpose of monitoring the impact of the scheme in Scotland can be undertaken via a DSA.

Timeframe and expected next steps?

The GGSS is funded via a Green Gas Levy and we urge the UK Government to prioritise the transition of the levy from a per meter point design to a volumetric mechanism.

Policy

UK Clean Heat Grant - a GB-wide Clean Heat Grant is planned to come into force in 2022, supporting uptake of heat pumps (and limited biomass boilers) via up-front grants.

Date announced

UK Government announcement

Progress on implementation since time of last report / CCPu

Plans for the UK Clean Heat Grant have been replaced by the Boiler Upgrade scheme, which launched in April 2022, following the closure of the DRHI.

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

Support for Heat Networks: the District Heating Loan Fund helps address the financial and technical barriers to district heating projects by offering low interest loans.

Date announced

CCP 2018

Progress on implementation since time of last report / CCPu

The District Heating Loan Fund (DHLF) continues to offer low interest loans to help overcome the financial barriers to the delivery of low carbon infrastructure projects.

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

No

Timeframe and expected next steps?

DHLF expected to continue to offer funding throughout financial year 21/22. Planned launch of re-scoped DHLF in 2022.

Policy

Implement the provisions of the Heat Networks (Scotland) Bill to create a strong regulatory framework to support delivery by 2023.

Date announced

2020-2021 PfG

Progress on implementation since time of last report / CCPu

Bill passed unanimously by Scottish Parliament on 23 February 2021.

Draft Heat Network Delivery Plan written.

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

The Act creates two statutory deadlines:

1 April 2022: Publication of Heat Networks Delivery Plan

1 October 2023: Laying of SSI to set 2035 target for heat network supply.

Timeframe and expected next steps?

We will consult on regulations in late-2021. Draft Heat Networks Delivery Plan, including section on regulations consulted on late 2021. Heat Network Delivery Plan was published on 31 March 2022. Consultation on statutory guidance and regulations to happen Spring 2022

We will deliver necessary regulations by 2023-24.

Policy

Continue to support the Heat Network Partnership - a collaboration of agencies focused on the promotion and support of district heating schemes in Scotland.

Date announced

Maintained

Progress on implementation since time of last report / CCPu

The Heat in Buildings Strategy committed to launch a Heat Network Pre-Capital Support Unit, expanding on the previous role of the Heat Network Partnership to provide enhanced support to the public and private sector in developing a pipeline for delivery.

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?

Review of requirements for the Heat Network Pre-Capital Support Unit will take place in summer 2022 with subsequent launch in Autumn 2022.

Policy

Net Zero Carbon Public Sector Buildings Standard will be introduced in 2021 and progressively rolled out across the public sector, as announced in the Programme for Government 2019.

Date announced

2020-2021 PfG + CCPu

Progress on implementation since time of last report / CCPu

The Standard was finalised and approved by Scottish Ministers in November 2020. It has been rolled out across a series of pathfinder projects during 2021/22. A steering group of public sector bodies has overseen the development of detailed sectoral guidance.

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

The Standard and accompanying detailed sectoral guidance have been finalised. This voluntary Standard is now available to be used.

Timeframe and expected next steps?

A number of public sector bodies have ambitions to use the voluntary standard. Work in 2022 is focusing on maintaining the standard, developing a governance structure to oversee its application, and discussions across Scottish Government about the funding implications.

Policy

Local Heat and Energy Efficiency Strategies (LHEES) will be in place by the end of 2023, setting out preferred heat solutions zones, guiding building owner decision making about replacement heating systems, and forming the basis for local delivery plans targeting heat and energy efficiency investment.

Date announced

2020-2021 PfG + CCPu

Progress on implementation since time of last report / CCPu

In October 2021 COSLA agreed to develop a statutory framework for LHEES in partnership with the Scottish Government that would place a duty on local authorities to produce LHEES. A consultation on the draft LHEES Order was held in January 2022.

14 local authorities are currently being funded to develop area-wide LHEES. These projects will use the LHEES methodology, developed from the LHEES pilot programme, as well as outputs from the LHEES National Assessment, which carried out the early stages of LHEES analysis centrally using national datasets.

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

All 32 Scottish local authorities have participated in, and completed a pilot programme for LHEES, testing different approaches and building capacity. Learning from the pilots has fed into a methodology for LHEES, which will set out a consistent approach for the production of LHEES.

Timeframe and expected next steps?

We have committed to having LHEES in place across all local authorities by the end of 2023. We are working in partnership with local government to progress LHEES at pace. Following approval from the Minister, the Local Heat and Energy Efficiency Strategies (LHEES) Order (SSI) was laid in Parliament on 11 March 2022, approved by Parliament on 11 May and will come into force on 21 May 2022.

Policy

Assessment of Energy Performance and Emissions Regulations (Non-Domestic Buildings) - The Assessment of Energy Performance of Non-domestic Buildings (Scotland) Regulations 2016 require assessment of the energy performance and emissions of larger non-domestic buildings (those over 1,000 m²). A review programmed for 2021 will investigate and consult upon amended scope of standards and more challenging improvement targets to create a viable pathway for all existing non-domestic buildings to deliver the level of energy demand and emissions reductions needed.

Date announced

CCP 2018

Progress on implementation since time of last report / CCPu

Work to review the existing 2016 Regulations was paused in 2020 due to the Covid pandemic.

The review recommenced late in 2021, however due to the hiatus and the change in context in the intervening period (i.e. the publication of the Heat in Building Strategy), the focus of the review changed. We are investigating three broad regulatory approaches:

• Measures based approach – increase the ambition of the existing 2016 Regulations
• Set a minimum EPC standard
• Regulate based on actual energy consumption (operational ratings)

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

The long term milestones for delivery are set in the Heat in Building Strategy – i.e. convert 0.5m buildings to zero emissions heat by 2030, and all by 2045.

The Heat in Buildings Strategy commits to introducing regulations to achieve this by 2025.

A Call for Evidence on the broad regulatory approaches was published in December 2021, and closed at the end of February.

Delivery milestones (i.e. rollout/ progress) haven’t been developed yet.

Timeframe and expected next steps?

Consultation on proposals to regulate all non-domestic buildings for energy efficiency and zero emissions heat is planned for later in 2022.

Policy

Support for community low and zero emissions heat projects through CARES.

Date announced

CCPu

Progress on implementation since time of last report / CCPu

Heat decarbonisation is a key focus of the current CARES contract, with tailored packages of support available to eligible applicants.

The scheme provides free advice, and loan and grant funding, with up to £8.25m made available this financial year (2021/22) to assist community groups in developing renewable energy projects, supporting the growth of community and locally owned energy in Scotland.

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

Strategic policy direction will be provided to the contract delivery body through the Scottish Government Contract Manager in consultation with Heat Policy colleagues, to ensure CARES is aligned with Scottish Government heat decarbonisation objectives, with feedback on progress monitored through regular engagement and reporting commitments. The scheme has, since inception in 2010, offered advice to over 900 organisations and supported over 600 community and locally owned renewable projects throughout Scotland, offering funding of over £54 million to date.

Timeframe and expected next steps?

Duration of CARES contract April 2021 – March 2025. Learning obtained from projects supported.

Policy

Salix financing facility to support investment in non-domestic buildings retrofit.

Date announced

CCP 2018

Progress on implementation since time of last report / CCPu

Salix Finance continues to deliver the Public Sector Energy Efficiency Loan Scheme on behalf of Scottish Government.

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

£45 million in energy efficiency projects in Scotland to date, which is forecasted to save the public sector more than £129 million over the lifetime of the projects.

Timeframe and expected next steps?

Ongoing

Policy

Work with social landlords to bring forward the review of the existing Energy Efficiency Standard for Social Housing (EESSH2) with a view to strengthening and realigning the standard with net zero requirements.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

The Scottish Government is committed to the EESSH2 review and we want to do that jointly with the sector. We are looking to take forward this review, as soon as possible - as we fully understand the need for the sector to have clarity around this.

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

EESSH2 sets a performance target for energy efficiency in social housing by 2032

Timeframe and expected next steps?

Review commences 2022 for completion in 2023.

Policy

Work with our partners, including the UK Government, local authorities and utility providers to determine the best approach to heat decarbonisation for buildings currently heated by natural gas.

Date announced

CCPu

Progress on implementation since time of last report / CCPu

Work is underway to develop an area-by-area understanding of the options for buildings currently using gas. A pathways project being managed in partnership with SGN, the ENA and NGG will support a more detailed understanding of the potential for green gas. The LHEES process will provide a platform for bringing together stakeholder insight, analysis and business planning on the longer-term right solutions.

A high-level dialogue with the SGN, and the Heat Electrification Strategic Partnership group with the Scottish DNOs have been established for taking forward discussions around the decarbonisation of heat.

We continue to call on the UK Government to accelerate reserved decisions on the role of hydrogen and the future of the gas network. We welcome their commitment to consult on enabling or requiring hydrogen-ready boilers, and will work with the UK Government on this assessment. We are also engaging closely with BEIS on the development and design of a market-based mechanism to boost heat pump deployment.

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

No

Timeframe and expected next steps?

Ongoing

Policy

Review the system of building assessments and reports on energy performance and heat to ensure a system that is fit for purpose in meeting net zero emissions objectives for heat in buildings.

Date announced

CCPu

Progress on implementation since time of last report / CCPu

Commitment in the final Heat in Buildings Strategy to reform the EPC assessment, including consultation in summer 21 on this, with focus on zero emissions and active change brought through recommended measures, and away from cost based metric.

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

Milestone to consult in summer 2021. The consultation was undertaken as planned, with a closing date of 8 October.

Timeframe and expected next steps?

We will publish the consultation response in due course in 2022.

Policy

Work with stakeholders to further understand and support the application and use of low and zero emissions heating within designated historic environment assets and hard to treat buildings.

Date announced

CCPu

Progress on implementation since time of last report / CCPu

The final Heat in buildings strategy - achieving net zero emissions: contains a commitment to work with stakeholders, including Historic Environment Scotland (HES), to develop more solutions to transition Scotland’s historic buildings to zero emissions heating while respecting and preserving the special characteristics of our buildings and places, and where needed continue to build our evidence base and the guidance available for the heat transition in these buildings and areas, including in our approach to regulation. The strategy also commits to working with HES to consider what specific support may be needed within regulations to take account of buildings which are designated as listed or in conservation areas, in meeting requirements for decarbonisation of their heat supply and reducing their demand for heat.

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?

We have established a Short Life Working Group which will provide recommendations for consultation on regulatory options for energy efficiency and zero emission heat in tenement buildings. This work will also consider appropriate measures for traditional and historic buildings.

Policy

Develop and introduce future regulation for non-domestic buildings and launch a consultation on these proposals.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

Work to review the existing 2016 Regulations was paused in 2020 due to the Covid pandemic.

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

The long term milestones for delivery are set in the Heat in Building Strategy – i.e. convert 0.5m buildings to zero emissions heat by 2030, and all by 2045.

The Heat in Buildings Strategy commits to introducing regulations to achieve this by 2025.

Delivery milestones (i.e. rollout/progress) haven’t been developed yet.

Timeframe and expected next steps?

Consultation on proposals to increase ambition of existing 2016 Regulations during 2022.

Policy

Undertake work to identify the capacity and output of renewable electricity generation required in Scotland to support the projected roll-out of heat pumps.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

Scottish Government undertook internal analysis and modelling of the Scottish electricity system for the duration of the Climate Change Plan during 2021.

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?

Completed

Policy

Consider whether to extend Permitted Development Rights for zero-emission heat networks and micro-renewable technologies.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

We are carrying out a multi-phase review of permitted development rights (PDR) in Scotland. COVID-19 has affected the timetable. Heat networks PDR are now in phase 4. Work on phase 4 PDR started in Autumn 2021.

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

Work is in part dependent on progress with the wider legislative framework on heat networks. The Heat Networks (Scotland) Act received Royal Assent in March 2021.

Timeframe and expected next steps?

Heat network policy leads to advise on circumstances in which they would like to see PDR apply.

Work is underway to take forward Regulations and Statutory Guidance that will see the new regulatory system for heat networks in place by the beginning of 2024.

Policy

Undertake work to better understand the impact on electricity networks of projected heat pump deployment. Work with the Distribution Network Operators through the Heat Electrification Partnership to build an evidence base to inform business planning. Work with industry and networks to understand need for heat pumps systems to be smart enabled, and identify options to integrate smart systems into our delivery programmes; and to explore how innovation can help to improve the consumer experience.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

Further to the commitment in the Heat in Buildings Strategy we have established a heat electrification partnership with Scottish and Southern Electricity Networks and SP Energy Networks, Scotland’s two Distribution Network Operators. We have been working with both companies over the past year to support development of their Distribution Future Energy Scenarios, an important input to their ED2 business plans. Through this forum we will engage with the DNOS on LHEES to understand how it might be used to support energy network planning and investment.

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

No

Timeframe and expected next steps?

We have commissioned research on potential network investment costs of the heat transition for Scotland (ranges of costs and impacts on consumer).

Policy

Support heat networks through: Introducing a Non-Domestic Rates Relief for renewable and low carbon heat networks until 2023/24. Working to identify how new buildings in Heat Network Zones could be made ready to connect to heat networks. Including district heating within the Permitted Development Rights review. Through National Planning Framework 4, ensuring that local development plans take account of where a Heat Network Zone has been identified.

Date announced

CCPu

Progress on implementation since time of last report / CCPu

Regulations were laid in Scottish Parliament on 24 February, ahead of taking effect on 1 April 2021.

Proposal included in consultation on New Build Heat Standard published in December 2020.

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

Expect uptake of relief of c. £37k p.a.

Timeframe and expected next steps?

Regulations will run until 31 March 2024.

Anticipate that there will be a review of the relief and next steps nearer end date.

New build heat standard expected to be in place by 2024.

Policy

Explore how local tax powers could be used to incentivise or encourage the retrofit of buildings, and commission further analysis to identify potential options.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

The final Heat in Buildings Strategy, published in October 2021, contains a commitment to consider how our local tax powers, such as council tax and non-domestic rates, could be used to incentivise or encourage the retrofit of buildings.

Timeframe and expected next steps?

We will commission further analysis in 2022 to identify potential options, to be implemented from the middle of the decade where appropriate, subject to consultation and public engagement.

Policy

Design future delivery programmes to ensure significantly accelerated retrofit of buildings, with new programmes to be in place from 2025.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

We recently consulted on our draft Heat in Buildings Strategy. Responses are being analysed.

Timeframe and expected next steps?

Next steps will be set out in due course.

Outcome 3: Our gas network supplies an increasing proportion of green gas (hydrogen and biomethane) and is made ready for a fully decarbonised gas future

Policy

Hydrogen for heat demonstrator – providing £6.9m support for SGN’s H100 hydrogen for domestic heat demonstrator.

Date announced

2020-2021 Programme for Government

Progress on implementation since time of last report / CCPu

Complete – funding provided and the project is in construction phase.

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

Work with UK Government on product standards, with a view to making new gas boilers hydrogen-ready.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

Underway, pending UK Government consultation on product standards. Scottish Ministers have written to BEIS Ministers setting out our support for the development of hydrogen-ready boilers into the market

Timeframe and expected next steps?

Ongoing engagement with BEIS colleagues.

Outcome 4: The heat transition is fair, leaving no-one behind and stimulates employment opportunities as part of the green recovery

Policy

Develop a long-term public engagement strategy in 2021 and begin implementation of early actions.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

The Heat in Buildings Strategy in October 2021 commits the Scottish Government to develop a Heat Decarbonisation Public Engagement Strategy, building on the objectives and guiding principles of the Climate Change Public Engagement Strategy.

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

Not as yet

Timeframe and expected next steps?

Strategy development has commenced. Consumer research, will be undertaken Summer/Autumn 2022 to inform. A draft strategy will be produced later this year, to be consulted on through on-going stakeholder – and public – engagement.

Tied to the strategy, a set of initial public engagement delivery work-streams will launch in September 2022 alongside the virtual National Public Energy Agency. This will include: a national campaign; and a national conversation.

Policy

Smart Meter installation: All homes and businesses will be offered a smart meter by 2020 under a UK Government initiative, providing the opportunity for a greater understanding of final energy consumption.

Date announced

CCP 2018

Progress on implementation since time of last report / CCPu

The smart meter programme is owned and led by the UK Government who have responsibility for the policy, regulatory and commercial framework.

The Scottish Government is working to deliver a Smart Meter Advice Project (SMAP) through Home Energy Scotland (HES), to enable customers to make the most of the energy use data provided by their smart meters.

HES have faced delays due to transfer of smart meter data from the Data Communications Company (DCC). To avoid further delay to the service in 2021-22 HES developed a technical solution which defaults to using average tariffs when specific tariff data is unavailable from DCC. The upgraded application is now available and is being monitored for data quality. HES are currently conducting a pilot with volunteer customers to trial the solution in the field

Timeframe and expected next steps?

According to statistics provided by Smart DCC in February 2022, 47.7% of all meters in Scotland are now smart meters.

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

In June 2021, the UK Government confirmed the tolerance levels for the first two years of a new four-year smart metering Targets Framework, which started on 1 January 2022. This replaces the previous “All Reasonable Steps” framework which ran from 2012 and was due to end on 31 December 2020 but was extended by 1 year due to COVID-19.

Policy

Work with the Scottish Cities’ Alliance and the seven cities on the opportunities to accelerate activity on heat and energy efficiency.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

The Scottish Government have provided funding support to the SCA to deliver a Carbon Scenario Tool to support both the cities net zero ambitions and the production of LHEES.

Additionally, the Low Carbon Infrastructure Transition Programme (LCITP) is supporting the development of a prospectus of heat network projects that has been produced by SCA.

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 Carbon Scenario Tool project is nearly completed. Scottish Government officials are inputting to final reporting to ensure maximum benefit and relevance to LHEES.

Policy

Provide capital investment for Scottish colleges for equipment to deliver training for energy efficiency and heat.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

This work is being delivered by the Energy Skills Partnership (ESP) via Energy Saving Trust and relates to 2 EV charging rigs, 5 heat pump training rigs, 3 solar thermal training rigs and an insulation training centre. 2 applications for heat pump training rigs, an application for solar thermal and 2 applications for EV charging have been received. However, Covid is creating some problems delivering this effectively due to:

• Staff furloughed e.g. procurement staff who would normally do this work for curriculum teams
• Access to buildings to measure and produce drawings of where equipment will fit is not possible due to Covid
• ESP has experience of funds like this and in ‘normal’ times colleges are enthusiastic to receive this kind of funding – Covid is making this a challenge

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

See text in previous cell which sets out what was agreed.

Timeframe and expected next steps?

To date we have provided £164,700 capital investment in colleges in the north of Scotland (With further investment in the South of Scotland supported by Scottish Power Green Economy Fund) for heat pump and insulation training equipment. Three colleges in Scotland currently offer training for thermal insulation with a further two training facilities due to open Aug 2022. There are 10 colleges who are equipped to offer heat pump training, with a further 4 coming online later this year.

Policy

Respond to the recommendations of the Expert Advisory Group on a heat pump sector deal for Scotland, by Q1 2022.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

The Heat Pump Sector Deal Expert Advisory Group published their recommendations in a final report in November 2021. We are now reviewing the report and will respond alongside our heat in buildings strategy supply chains delivery 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?

N/A

Policy

Bring forward and support demonstrator projects, such as: hybrids and high temperature heat pumps; the use of hydrogen for space and water heating; projects to understand the impact of heat transition on existing energy networks.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

We are currently at the scoping stage and will provide an update at a later time.

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

Publish a ‘Heat Network Investment prospectus’ in 2021/22 - a first-cut of HN Zones across Scotland, combined with information on decarbonisation needs of existing networks.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

We published a First National Assessment of Potential Heat Network Zones on 13 April 2022. Work on the decarbonisation of existing networks will be taken forward in 2022/2023.

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?

Complete (renamed as “First National Assessment of Potential Heat Network Zones”)

Policy

Establish a short life working group on finance for the heat transition.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

The Heat in Buildings Strategy published in October 2021 includes a proposal to establish a Green Heat Finance Task Force in 2021 to explore potential new and value for money innovative financing mechanisms for both at-scale and individual level investment in heat decarbonisation.

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?

Green Heat Finance Taskforce established in 2021.

Policy

Establish principles to underpin our commitment to ‘no-one being left behind’ in the heat transition, ensuring our approach neither increases the fuel poverty rate nor increases the depth of existing fuel poverty. This will include the effective design and targeting of our fuel poverty and heat in buildings programmes.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

The Heat in Buildings Strategy sets out the principles that will guide our delivery programmes, to assess the impacts of our programmes on fuel poverty rates, and to ensure only take forward actions where they are found to have no detrimental impact on fuel poverty rates, unless additional mitigating measures can also be put in place

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

The Heat in Buildings Strategy provides more detail

Timeframe and expected next steps?

We have commissioned research to explore the role microgeneration and storage may play in reducing energy costs when installed alongside zero emissions heat.

Policy

Ensure Local Heat and Energy Efficiency Strategies are developed through extensive engagement with local communities.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

All 32 Scottish local authorities have now piloted LHEES. Each of the three pilot phases have been evaluated, and a synthesis evaluation has been published for the whole pilot programme. As detailed above, 14 local authorities are currently being funding to develop area-wide LHEES. A monthly local authority forum was initiated in late 2022 to support local authorities with LHEES and encourage knowledge sharing.

Timeframe and expected next steps?

We have committed to having LHEES in place across all local authorities by the end of 2023. The LHEES methodology contains a section on stakeholder engagement, including community engagement. This will be adapted into guidance to support the LHEES duty and, subject to it coming into force, will need to be consulted on with local authorities.

Policy

Continue delivery of energy efficiency investment to support fuel poor households and conduct further modelling and analysis to better understand the potential impact of the heat transition on fuel poor households and the scale of, and options for, mitigation that may be required.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

We are conducting internal analysis to understand the intersection of fuel poverty and heat decarbonisation and we continue to evolve our schemes to ensure solutions are tailored to the specific circumstance of households

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

Urge the UK Government to rebalance levy costs on energy bills to make gas and electric systems relatively more cost comparable.

Date announced

CCPu 2020

Progress on implementation since time of last report / CCPu

We continue to press the UK Government on this. In the Heat in Buildings Strategy we set out a series of actions required by the UK Government if we are to deliver a rapid and just heat transition. Scottish Ministers have reiterated in recent correspondence with BEIS Ministers that the balance of energy costs must be addressed to incentivise zero emissions heating appropriately. In their Net Zero Strategy (October 2021), the UK Government committed to look at options to shift or rebalance levies, though we continue to await the publication of the full Fairness and Affordability Call for Evidence.

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